Workers of the South Africa Revenue Service (SARS) on Tuesday called off their four-day strike following their acceptance of the fiscal authorities’ offer of eight percent wage increase in 2019 and a CPI-plus-2-percent rise for 2020-21.
The deal was struck following negotiations with the authorities by a union representing about half its employees, National Education, Health and Allied Workers Union (NEHAWU), agreed with the offer.
The union’s spokesperson, Khaya Xaba, was quoted as saying on the deal that “after extensive consultations, the majority of our provinces have given us a mandate to sign (this) settlement agreement.”
The 8 percent wage increase is double the local inflation rate and it is also what a second union representing the agency’s workers accepted earlier on Monday.
It would be recalled that the aggrieved workers commenced their industrial action last Thursday, demanding a 15 percent wage increase but later lowered the demand to 11.4 percent on Sunday.
The industrial action was embarked on by the aggrieved workers at a time when the President Ramaphosa-led government was planning to boost revenue collection.
Analysts have observed that South Africa has not been able to optimize its revenue generation potential in recent years partly due to poor administration by the tax collection agency.
