JOHANNESBURG – The Congress of South African Trade Unions (COSATU) in Johannesburg notes the tabling of the 2026/27 Medium-Term Budget by the Executive Deputy Mayor and MMC for Finance, Cllr Loyiso Masuku, on 27 May 2026. As the economic heartbeat of South Africa, the fiscal path chosen by this administration directly impacts the lives of 5.9 million residents, the majority of whom are the working class and the poor.

On the Politically Facilitated Agreement (PFA) and Worker Interests

COSATU welcomes the formal budget allocation for the Politically Facilitated Agreement (PFA), which addresses historic and legacy salary disparities within the municipal workforce. We appreciate the City’s commitment to ensuring workers receive fair compensation as a means to accelerate service delivery. Crucially, we support the City’s stance to implement this responsibly and with fiscal discipline, ensuring that workers receive what is rightfully theirs without compromising the City’s long-term financial integrity.

On Tariff Increases and the Cost of Living

While COSATU remains concerned about the escalating cost of living, we note that the tariff increases presented in this budget are generally lower than those seen in other major metros. However, these tariffs must not be seen as a win for workers, especially noting the continued rise in the cost of living in the country. The electricity tariff increase, which has been limited to an effective average household increase of 8.63% as opposed to the Eskom tariff of 9,01%, is noted with concern regarding the continued determination by Eskom to put strain on the budget of workers. As the Federation we appreciate the continuation of social safety nets, including 6 kiloliters of free water for every household and expanded social packages for the indigent.

On Inner City Rejuvenation and Spatial Justice

The Federation strongly supports the R7.2 billion allocation toward safety and urban management, alongside the dedicated pipeline for Inner City rejuvenation. For too long, apartheid spatial planning has forced workers to pay a “poverty tax” through high transport costs and long commute times. The City’s focusing on rental flat renewal, the Walkable Network, and hijacked building interventions is essential to making the city safe and live-able for workers. By revitalizing the Inner City as a residential and economic hub, we can reduce the heavy reliance on expensive transport, allowing workers to live closer to their places of employment.

Workers Unite!

Issued by COSATU Johannesburg

Provincial Chairperson: Amos Monyela, 079 493 5002

Provincial Secretary: Louisah Modikwe, 082 297 2659