MEDIA STATEMENT
19 October 2026
The Federation of Unions of South Africa (FEDUSA) calls on the Minister of Finance, Mr Enoch Godongwana, to use the 2026 Medium-Term Budget Policy Statement (MTBPS) to advance a decisive economic recovery agenda that prioritises decent jobs, protects workers’ livelihoods, strengthens public services and provides meaningful relief from the rising cost of living.
South Africa continues to face persistently high unemployment, sluggish economic growth and mounting pressure on household finances. Rising fuel prices are intensifying these challenges, increasing transport and production costs and placing additional pressure on workers, commuters and vulnerable households.
FEDUSA believes that fiscal sustainability must go hand in hand with economic development, employment creation and social protection. Fiscal consolidation must not come at the expense of workers’ livelihoods, essential public services or productive investment.
FEDUSA’S KEY EXPECTATIONS
1. Temporarily freeze the fuel levy
FEDUSA calls on government to temporarily freeze the fuel levy in response to persistently high fuel-price increases. Rising fuel costs have consequences far beyond the pump, contributing to higher transport fares, food distribution costs and the overall cost of living.
A temporary freeze would provide relief to workers and households already struggling to maintain their purchasing power. Government must also assess additional targeted relief measures, including the potential use of the Central Energy Fund’s Equalisation Fund, and communicate the fiscal implications and review arrangements for any intervention.
2. Prioritise jobs and economic growth
Government must accelerate infrastructure investment, support local manufacturing and other labour-intensive industries, and expand access to finance for small, medium and micro enterprises. Public investment must translate into sustainable employment, skills development and measurable economic growth.
FEDUSA calls for a developmental fiscal framework that stimulates economic activity and addresses structural unemployment rather than relying on spending cuts that risk deepening economic stagnation.
3. Protect workers’ wages and rebuild state capacity
FEDUSA calls for the protection of workers’ real wages, respect for collective bargaining and the honouring of existing public-sector wage agreements.
Critical vacancies in healthcare, education, policing and other essential services must be addressed. Government must adequately resource public institutions, strengthen institutional accountability and ensure that funding translates into improved service delivery, including the effective implementation of the National Health Insurance (NHI).
4. Deliver on the commitment to recruit 10,000 permanent labour inspectors
FEDUSA calls for a transparent progress report on the commitment announced in the 2026 State of the Nation Address to recruit 10,000 additional permanent labour inspectors.
Government must clarify the funding, recruitment timelines and deployment plans for these appointments. While the Department of Employment and Labour has reported progress on the separate inspector-intern programme, clear information is needed on the transition towards permanent appointments.
The lack of clearly communicated progress risks undermining public confidence in government commitments and delays the strengthening of labour-law enforcement that vulnerable workers urgently need.
The inspector-intern initiative also offers an opportunity to equip young people with practical experience, transferable skills and pathways into sustainable employment. FEDUSA calls for structured training, mentorship and clear progression opportunities for suitably qualified recruits.
5. Pursue progressive taxation and responsible public spending
FEDUSA calls for stronger tax compliance, action against illicit financial flows and serious consideration of progressive tax measures, including a wealth tax and a tax on exceptional corporate profits.
The burden of fiscal adjustment must not fall disproportionately on workers and low-income households. Government must strengthen revenue collection, improve expenditure accountability and take decisive action against corruption, wasteful expenditure and the misuse of public funds.
6. Restore municipal functionality and strengthen infrastructure
The MTBPS must provide a credible response to municipal financial distress, including outstanding obligations to workers and service providers, unsustainable debt and inadequate infrastructure maintenance.
FEDUSA calls for stronger municipal financial management, accountable leadership and sustainable funding arrangements. Investment in reliable and affordable electricity, public transport, water and sanitation must be prioritised. Strategic state-owned enterprises, including Eskom, Transnet and PRASA, must be strengthened to improve operational capacity and support economic growth, with meaningful engagement with organised labour throughout the reform process.
7. Strengthen public safety and law enforcement
Government must ensure that the police, detectives, forensic investigators, prosecutors and courts have the personnel, equipment and resources required to combat crime and corruption effectively.
FEDUSA calls for stronger institutional accountability and properly funded law-enforcement capacity. Workers and communities cannot thrive where crime, violence and corruption undermine their safety, livelihoods and access to justice.
8. Protect social security and expand employment opportunities
FEDUSA calls for the protection of the real value of social assistance, including the Social Relief of Distress (SRD) grant, and improvements to the administration of the Unemployment Insurance Fund (UIF) and Compensation Fund.
Government must reduce delays in processing legitimate claims and ensure eligible workers receive their benefits. Further reforms to the Two-Pot retirement system should be assessed with appropriate safeguards to improve workers’ financial security.
Public employment programmes, apprenticeships, learnerships and artisan-development initiatives must be expanded to provide meaningful pathways into decent work, particularly for young people. Skills development must translate into recognised qualifications, practical experience and sustainable employment.
FISCAL POLICY MUST DELIVER FOR WORKERS
FEDUSA recognises the importance of responsible public finances and sustainable debt management. However, fiscal policy must be assessed not only by its impact on the deficit and debt, but also by its ability to create jobs, protect workers’ purchasing power, strengthen public services and reduce inequality.
The MTBPS must set out clear priorities, credible funding commitments and measurable implementation plans. Government must demonstrate how its fiscal choices will stimulate productive investment, provide relief to households and ensure that economic recovery benefits working people.
Workers cannot continue to carry the cost of economic stagnation and persistently rising fuel prices. FEDUSA calls for a temporary freeze on the fuel levy, decisive action to create decent jobs and a fiscal framework that invests in people, protects workers and advances inclusive economic growth.
FEDUSA remains committed to advocating for a fairer, more productive and inclusive economy that upholds workers’ dignity, rights and livelihoods.
END
For media enquiries contact:
Betty Moleya
FEDUSA Media and Communications
063 736 5533
For interviews:
Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Ashley Benjamin
FEDUSA Deputy General Secretary
083 258 4433