Apr 2, 2019

Workers at South African tax agency end strike

Walk out began last Thursday

JOHANNESBURG (Reuters) — A four-day strike at South Africa’s tax collection agency ended on Tuesday when a union representing about half its employees agreed to an eight per cent wage increase in 2019 and a CPI-plus-two-per cent rise for 2020-21.

The wage hike negotiated by the National Education, Health and Allied Workers Union (NEHAWU) is double the local inflation rate and it is also what a second union representing the agency’s workers accepted on Monday.

Workers embarked on the strike last Thursday, demanding a 15 per cent wage increase before lowering it to 11.4 per cent on Sunday.

"After extensive consultations, the majority of our provinces have given us a mandate to sign (this) settlement agreement," NEHAWU spokesperson Khaya Xaba said.

The strike occurred at a time when the government wants to boost revenue collection, which has lagged in recent years partly due to poor administration at the tax collection agency, which employs around 13,000 people.

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