MEDIA STATEMENT
FOR IMMEDIATE RELEASE
Federation calls for a worker-centred approach that prioritises jobs, economic growth, public services and sustained fuel-price relief
21 October 2026
The Federation of Unions of South Africa (FEDUSA) notes the 2026 Medium-Term Budget Policy Statement (MTBPS) presented by the Minister of Finance, Enoch Godongwana, and welcomes measures aimed at maintaining fiscal stability, supporting infrastructure investment and providing temporary relief from rising fuel prices.
However, fiscal stability must translate into tangible improvements in the lives of workers, their families and vulnerable communities. South Africans continue to face high living costs, unemployment, pressure on public services and uncertainty about the country’s economic prospects. The MTBPS must therefore be assessed not only by its fiscal targets, but by its capacity to stimulate inclusive growth, create decent work and protect household livelihoods.
FUEL-PRICE RELIEF MUST BE SUSTAINABLE
FEDUSA welcomes the temporary fuel-levy relief announced in the MTBPS. The reduction of R3 per litre for diesel and R1.50 per litre for petrol from 4 November to 1 December 2026, followed by lower relief until 5 January 2027, will provide some relief to households and businesses.
However, temporary relief cannot be the end of the conversation. Fuel prices affect transport costs, food prices, production and the cost of delivering essential goods and services. Workers, particularly those who depend on private transport or public transport affected by fuel costs, continue to bear the consequences of these increases.
FEDUSA calls on government to assess the affordability of fuel beyond the temporary intervention and to consider extending relief if exceptional price pressures persist. Any further intervention must be informed by a transparent assessment of its fiscal implications and its impact on workers, consumers and the broader economy.
ECONOMIC GROWTH MUST TRANSLATE INTO DECENT JOBS
FEDUSA is concerned that the economic growth forecast for 2026 has been revised downwards from 1.6% to 1.2%. While government has outlined measures to strengthen infrastructure and encourage investment, growth at this level will not be sufficient to address South Africa’s unemployment crisis or provide the scale of decent work required.
Fiscal discipline is important, but it must be accompanied by a deliberate strategy to expand productive economic activity. FEDUSA calls for greater investment in local manufacturing, labour-intensive industries, infrastructure, small businesses and sectors with the potential to create sustainable employment.
Public investment must also be measured by the jobs created, the projects completed and the improvements experienced by communities. Infrastructure commitments must move efficiently from planning to implementation, with strong oversight to prevent waste, delays and cost overruns.
PROTECT THE SOCIAL WAGE AND VULNERABLE HOUSEHOLDS
FEDUSA notes that the social wage remains a significant component of government expenditure and that social grants support approximately 18.1 million beneficiaries. These interventions are essential to households experiencing poverty, unemployment and rising living costs.
However, the continued pressure on food, transport, electricity and other basic necessities requires government to ensure that social assistance remains responsive to the real cost of living. FEDUSA calls for the protection of vulnerable households and for consideration of measures to preserve the purchasing power of social assistance, including the Social Relief of Distress grant.
The objective of fiscal consolidation must not be achieved at the expense of food security, dignity or the basic needs of working-class and unemployed communities.
PUBLIC-SERVICE CAPACITY AND LABOUR INSPECTIONS MUST BE STRENGTHENED
FEDUSA notes the provision for early retirement and voluntary exit packages in the public service, which government estimates will generate average annual savings of R4.4 billion. While the management of the public-service wage bill is a legitimate fiscal consideration, these measures must not weaken the state’s ability to deliver essential services or place additional pressure on workers who remain in the system.
FEDUSA calls for transparent monitoring of the impact of these packages on staffing levels, workloads and service delivery, with meaningful engagement with organised labour.
The Federation also notes the Minister’s announcement that government intends to increase the number of labour inspectors. This is an important issue for workers, particularly in sectors where non-compliance with labour legislation, unsafe workplaces and the exploitation of vulnerable employees remain concerns.
FEDUSA calls for clear implementation timelines, adequate resources and regular reporting on the strengthening of labour inspection capacity. Government must clarify how its commitments on inspector recruitment and training will be implemented, including the relationship between internship programmes and the appointment of inspectors able to enforce labour legislation effectively.
PUBLIC INVESTMENT MUST DELIVER BETTER SERVICES
FEDUSA welcomes additional allocations to provincial and local government, including funding intended to support health, education and basic municipal services. These allocations must translate into functioning facilities, reliable water and sanitation, maintained roads and improved access to essential services.
The additional funding must be accompanied by stronger financial management, accountability and consequences for wasteful expenditure and persistent non-compliance. Communities and workers cannot continue to carry the cost of institutional failures while public resources fail to deliver the services for which they are intended.
FEDUSA further calls for infrastructure investment to support local economic development and employment, while ensuring that public procurement and project implementation are transparent and accountable.
RESPONDING TO CLIMATE RISKS AND FOOD-COST PRESSURES
FEDUSA notes the increase in the contingency reserve to R10 billion to respond to potential threats associated with El Niño and other risks. This provision is important given the potential impact of climate conditions on agricultural production, food prices, household budgets and employment in affected sectors.
Government must ensure that preparedness translates into practical support for vulnerable households, farming communities and workers whose livelihoods may be affected. Early intervention, effective coordination and transparent use of emergency resources will be critical to limiting the social and economic consequences of these risks.
COMMITMENTS ON GBVF MUST TRANSLATE INTO ACTION
FEDUSA welcomes the allocations announced to strengthen the response to gender-based violence and femicide (GBVF), including funding for more than 3,500 social workers, improved forensic and investigative capacity, and the expansion of sexual offences courts and Thuthuzela Care Centres.
These are important commitments, but their success will depend on effective implementation, adequate staffing, accessible support services and accountability for results. Workers and communities need a response that improves prevention, protects survivors and strengthens access to justice.
FEDUSA calls for regular reporting on the implementation of these commitments and for coordinated action across government departments, law-enforcement agencies, workplaces and communities.
FISCAL DISCIPLINE MUST BE MATCHED BY ACCOUNTABILITY
FEDUSA acknowledges the importance of managing public debt, improving revenue collection and strengthening financial accountability. The upward revision of projected tax revenue by R17.1 billion compared with the February estimate provides an opportunity to reinforce the importance of effective revenue administration and responsible public spending.
However, stronger revenue collection and fiscal discipline must be matched by demonstrable improvements in public services, infrastructure and employment outcomes. The proposed fiscal guardrails must support responsible budgeting without undermining government’s developmental obligations or narrowing the space for measures that protect workers and stimulate inclusive growth.
The Federation will continue to scrutinise the implementation of the MTBPS and the extent to which its commitments translate into measurable improvements for working people.
CONCLUSION
FEDUSA believes that South Africa requires a budget framework that balances fiscal responsibility with the urgent need to create decent jobs, reduce the cost-of-living burden and strengthen the capacity of the state to serve its people.
The temporary fuel-levy relief is a welcome intervention, but workers need a sustained response to affordability pressures. Similarly, infrastructure spending, public-service reforms and commitments to strengthen labour inspection must be judged by their implementation and their impact on people’s lives.
FEDUSA calls on government to engage meaningfully with organised labour and other social partners to ensure that fiscal policy supports inclusive economic growth, decent work, social protection and a fairer economy.
ENDS
For media enquiries:
Betty Moleya
FEDUSA Media and Communications
063 736 5533
For interview requests:
Riefdah Ajam – FEDUSA General Secretary
079 696 2625
Ashley Benjamin – FEDUSA Deputy General Secretary
083 258 4433