Labor Dispute Puts Sassa Services in Jeopardy as State IT Firm Faces Strike

Labor Dispute Puts Sassa Services in Jeopardy as State IT Firm Faces Strike. In a concerning development, members of South Africa Public Servants Association have announced their intent to strike at the state-owned IT company, Sita, starting on Monday. This strike has the potential to disrupt critical government services, particularly welfare payouts, and impact various government departments.

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Strike Notice Issued Due to Salary Deadlock

The labor union has formally notified Sita of the strike, attributing the labor action to an impasse in salary negotiations. In an emailed statement, the PSA expressed their concerns and revealed the impending disruption of services in departments like Home Affairs, Employment and Labour, and the South African Social Security Agency.

Worker Demands for a Pay Increase

The union, which represents more than 235,000 government employees, is pressing for a 7.5% pay raise for the 2022-23 fiscal year from Sita’s board. This demand is made amid concerns about rising inflation rates. While inflation reached 5.4% in September, a recent survey by the Bureau for Economic Research in Stellenbosch indicated that trade union officials anticipate an average inflation rate of 6% for this year and 5.6% for 2024.

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Total Shutdown Looms as Employees Demand Resolution

“The employees are growing increasingly frustrated and are prepared to instigate a complete shutdown until their demands are met,” warns the PSA. The union acknowledges the serious implications of this potential shutdown, including adverse effects on network connectivity, operations in various government sectors, and service delivery as a whole.