The South African Democratic Teachers’ Union (SADTU) notes, with disappointment, the 2024 medium-term budget policy statement (MTBPS) speech presented by Finance Minister, Enoch Godongwana.
The MTBPS, the first under the Government of National Unity (GNU) administration is nothing new but a consolidation of neoliberal austerity measures. It has left us in doubt if it will achieve some of the priorities of the GNU which include, among others, driving inclusive growth, job creation, reducing poverty and tackling high cost of living. The MTBPS gives a bleak picture of the year ahead with a forecast of real GDP growth of 1,1% in 2024 which is lower than the estimate of 1,3% in February and a growth forecast average of 1,8% over the medium term. Tax collection is expected to be R22,3 billion lower than what was estimated in February.
Government debt will take R6 trillion or 75% of GDP; for every R1, 22c is paid to debt service costs.
As we assimilate these depressing figures, the MTBPS gave little or no details on measures to tackle the rising unemployment rate which is standing at 42,6%.
The little measures to alleviate youth employment introduced during the sixth administration in the form of Presidential Youth Employment Initiative have been abandoned leaving the youth with little hope of ever getting employment.
As a union in the education sector, we are deeply disappointed that the minister did not speak to the pending retrenchment of 2 400 teachers in the Western Cape and other cost cutting measures in some provincial departments of education as these will have a negative impact in the accessing and provision of quality public education.
The allocation of R478,6billion to Basic Education with an average growth of 4,7% between 2024 and 2028 appears inadequate to address the newly mandated Grade R attendance, a core tenet of the recently enacted Bela Bill. The lack of targeted funding to implement Clauses 4 and 5 of the Amendment Act essential for operationalising this policy seems to be another concession to the Democratic Alliance, leading us to question why the minister and President are conceding to DA’s interests while the ANC remains on autopilot.
Additionally, Grade R teachers who face unequal conditions of service compared to their public education colleagues, must be brought under standardised employment terms to uphold quality public education.
This allocation fails to recognise the significant infrastructure, materials and human resources needed to fulfill the education goals of the National Development Plan that these amendments were designed to advance,
The projected 4,5% average annual growth for government employee compensation of between 2024 and 2028 reflects a concerning disregard for the integrity of the wage negotiations process, especially as negotiations for 2025 are still ongoing. This preemptive budgeting move signals an alarming influence from the DA whose anti-labour stance and opposition to collective bargaining are well known. Bypassing negotiations to satisfy business interests, symbolised by figures like Helen Zille, the minister is effectively undermining the collective bargaining process.
Negotiating through budgetary statements rather than within established bargaining chambers is not only unacceptable but provocatively signals a unilateral approach that disregards worker voices. If the minister has in effect shut down meaningful negotiations, then he has left us with no choice but to seek a mandate from our members on an appropriate cause of action in defense of our rights and collective bargaining framework.
The early retirement initiative to reduce the size of public service workforce and to introduce younger talent to the public service as announced by the minister needs consultation with labour in terms of the law. It is not for the first time that government has come up with such an initiative. It was introduced in 2012, but it failed to attract the expected numbers. Introducing young talent to the public service is always welcomed but it should not compromise the institutional memory of public service.
We welcome the additional funding for the South African Revenue Service to help the organisation to enhance the efficiency of revenue collection. However, we believe these efforts are futile if the country does not increase the revenue base through job creation.
The union expresses deep disappointment and calls upon the minister to clarify where his loyalties lie. It appears he is being swayed by DA and business interests rather than prioritising the needs of the country.
ISSUED BY: SADTU Secretariat
CONTACT:
General Secretary, Mugwena Maluleke: 082 783 2968
Deputy General Secretary, Nkosana Dolopi: 082 709 5651
Media Officer, Nomusa Cembi: 082 719 5157