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SARS notes legal action by union partner Public Servants Association of South Africa (PSA)

SARS notes legal action by union partner Public Servants Association of South Africa (PSA)

Tshwane 14 May 2021 – The South African Revenue Service has noted that one of its union partners, the Public Servants Association of South Africa (PSA) has opted to take legal steps to find a solution to the matter of salary increase between SARS and organised labour.

Just before the end of the financial year, the SARS Commissioner communicated with employees about ongoing discussions with the broader executive leadership and Organised Labour regarding implications of budget allocation on SARS’ financial resources, which remains a serious challenge.

SARS, like other Government entities, is subject to national budget allocation from National Treasury. It is a well-known fact that the economy has been adversely affected, like never before, by the pandemic. SARS’ funding has similarly been affected.

In view of the above, on Tuesday, 6 April 2021, SARS and Organised Labour convened with the aim of looking at opportunities in the current situation, and specifically engaged on issue of the Employee Value Proposition. Organised Labour gave input on such, and will continue to engage SARS thereon.

On Wednesday, 7 April 2021, at an ad hoc NBF, all parties dealt with the implementation of the final year of its 3-year substantive wage agreement. SARS indicated to Organised Labour that the unfortunate reality is that SARS is unable to pay salary increases for 2021/22, because the budget allocated to it did not include wage increase.

It behoves all of us to act in a manner that takes into account the daunting challenges facing our country. Our country is faced with unacceptably high unemployment, and indeed, those of us who have this privilege of continued work, must tamper with our expectations, when we make legitimate demands. It is of importance, therefore, that we take steps that will help arrest such further financial deterioration in our country.

We respect organised labour’s right to act in a manner that advances the interest of their members by considering legal remedies.

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