Sars tables new offer in wage negotiations

Labour unions want 7% raise

The SA Revenue Service (Sars) says it has put a new offer on the table in wage negotiations between itself and two unions.

Initially Sars tabled a 0% wage increase, while unions demanded 7%, which Sars rejected, saying “it is simply not affordable”.

Without mentioning the new offer put to unions, Sars said through its own diligence in managing costs and other initiatives it is able to make some funds available towards bargaining with employees.

Sars said engagement between the parties on the dispute had been revived and remained constructive and positive.

“We remain confident that with this offer we can resolve the dispute and move forward to focus on serving taxpayers and executing the important mandate we serve.”

Sars said its leadership met organised labour represented by the National Education, Health and Allied Workers Union (Nehawu) and the Public Servants Association of SA (PSA) to find a solution to matters where the unions declared a dispute.

The revenue service said like all government institutions, it was affected by financial challenges facing SA and its funding allocation from National Treasury did not make provision for salary increases.

Funds that would be used for salary increases would be drawn from savings from last year (2021/22) and projected savings from the current year (2022/23), which have been approved for people costs.

“I am pleased that under difficult conditions we are able to provide some financial relief to our employees. I also remind our employees we are inordinately privileged to have employment security at a time when so many are unemployed and financially destitute,” said Sars commissioner Edward Kieswetter

The revenue service said the offer was tabled on Saturday during a special national bargaining forum. Unions then engaged Sars on options to allocate available funding towards financial relief for employees, and in an attempt to resolve the dispute.

“Sars formally extended this offer to organised labour on May 22, in full and final settlement of the dispute relating to the salary increase demand of the 2022/23 substantive wage negotiations...”