The South African Federation of Trade Unions (SAFTU) last Thursday condemned the ANC, saying that there is no real difference on the economy between it and their coalition government partner the right wing Democratic Alliance.
In a statement SAFTU stated: ‘SAFTU warns the working class: Do not deceive yourself! There is no fundamental difference between the African National Congress (ANC) and the Democratic Alliance (DA) when it comes to economic policy.
‘Both parties are united by a neoliberal macroeconomic framework that prioritises market interests over the needs of the working class and poor.
‘This ideological convergence is clearest in their shared commitment to fiscal austerity, inflation targeting, and a regressive taxation regime that protects the rich while burdening the poor.
‘When it comes to fiscal and monetary policy, the only real distinction is rhetorical – one may drape itself in liberation colours, and the other in blue – but both remain loyal to the dictates of capital and the interests of big business.
‘Let us be clear: The DA’s recent opposition to the proposed VAT increase is not evidence of a pro-poor awakening.
‘It is motivated by its rejection of any wealth redistribution.
‘The DA does not support increasing corporate tax. It opposes a wealth tax.
‘It is silent on the billions lost through illicit financial flows, mispricing, and tax-dodging schemes by multinational corporations.
‘Their primary concern is to defend the rich, not the poor.
‘The ANC’s alignment with this regressive agenda is the real betrayal. It is shameful.
‘A VAT increase is a tax on survival.
‘It punishes the unemployed, the working poor, and the marginalised who are already struggling under the weight of unemployment, food price inflation, and public service cuts.
‘The ANC has long retreated from the call for wealth sharing and a better life for all. Today, it governs not for the many, but for the few.
‘SAFTU says: Reject the VAT Increase – Tax the Rich!
‘There are alternatives. We demand:
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- The immediate introduction of a wealth tax on the ultra-rich.
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- A substantial increase in corporate income tax.
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- The closure of tax loopholes and schemes used by corporations to avoid paying their fair share.
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- Urgent measures to halt illicit financial outflows and corporate profit shifting.
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- A progressive tax regime that ensures the rich pay far more than the poor.
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- An increase in VAT on luxury goods – including imported luxury items that contribute to job creation abroad while deindustrialising our local economy.
‘Why must the poor pay more while the rich continue to enjoy tax holidays on their imported designer clothes, luxury cars, fine wines, and foreign electronics?
‘Raising VAT on essential goods is a war against the working class. Raising VAT on luxury goods is common sense.
‘We reiterate: There can be no revolutionary action without revolutionary theory.
‘The working class must see clearly that our struggle is not just against individual politicians, but against a system that reproduces inequality, unemployment, and hunger.
‘SAFTU calls on all progressive forces, unions, and working-class communities to rise in defence of economic justice. The time has come to build a united front to fight austerity, neoliberalism, and the capitalist looting of our future.
‘People Before Profits! Tax the Rich, Not the Poor!’
Meanwhile, the Congress of South African Trade Unions (Cosatu) has called on Parliament to exercise its legislative authority and amend the 2025-26 Budget to scrap the value-added tax (VAT) hike.
This comes after Finance Minister Enoch Godongwana, during his Budget Speech tabled earlier this month, proposed a 0.5 per cent VAT increase for two consecutive 2025-26 and 2026-27 fiscal years in a bid to shore up the 58 billion rands (£2.34 billion) Budget deficit.
Cosatu said last Wednesday that the Budget’s primary source for funding will be a painful blow to millions of highly indebted working-class families and an already battered economy.
Cosatu spokesman Matthew Parks, said they were deeply dismayed by the VAT hike and the failure to adjust income tax brackets will inflict unnecessary pain upon working class families and the economy.
Parks said: ‘We cannot support tax hikes upon the working class and the poor and thus call upon Parliament to reject these ill-considered bleeding of workers’ already meagre wages and amend the Budget with more progressive revenue options.
‘VAT is regressive and hurts the poor who already cannot afford to buy food, electricity or transport.’
COSATU also released a statement on Wednesday in which it said: ‘COSATU commemorates the legacy of anti-apartheid stalwart Winnie Nomzamo Madikizela-Mandela, who passed away on this day in 2018.
‘Born in 1936, she devoted her entire life not only to the struggle against the injustices of racial discrimination, she later became the voice of the poor, uncompromising in her disapproval of conditions that perpetuated poverty, traits fit for a “Mother of the Nation” that she was known to be.
‘At the height of apartheid when activists were banned and imprisoned in numbers, she was one of the women at the forefront of the movement, keeping the machinery oiled through mobilisation and resistance of the ills of racism.
‘Regularly harassed by police and enduring detention herself, she made personal sacrifices undeterred in her course to the country’s liberation.
‘A social worker in her youth, it’s no surprise she rejected oppression of any kind, taking up the leadership role of the African National Congress’ Women’s League in 1993, becoming a symbol of women’s rights.
‘Even after 1994, she remained steadfast in the emancipation of women, fearless in her views against subjugation of the vulnerable.
‘Unapologetic about women’s rights, today women are emboldened in their stance for transformation and against gender-based violence.
‘COSATU hopes that all citizens and the country’s leaders learn from Winnie Madikizela-Mandela.
‘As the “Mother of the Nation” she rejected poverty.
‘She spoke out against social injustices, calling for dignified conditions deserved by all South Africans.
‘May her legacy live on!’
Meanwhile, the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) has strongly condemned what it described as an unjust and dangerous campaign of political and economic aggression by the US Trump administration against South Africa.
The ITUC-Africa declared its unwavering support for the South African people and government, rejecting what it called neo-imperialist attacks designed to undermine the country’s sovereignty, self-governance, and historic struggles for justice.
ITUC-Africa General Secretary Akhator Joel Afolabi Odigie denounced the US administration’s threats, which include aid suspension, trade agreement attacks, and inflammatory rhetoric, as a disturbing echo of past imperialist interventions aimed at derailing Africa’s post-colonial and post-apartheid progress.
The statement highlighted that South Africa’s recent reforms – particularly land redistribution, healthcare access, and education equity – are necessary steps towards dismantling the enduring structures of apartheid-era oppression.
South Africa’s land reform efforts, anchored in constitutional law, have been a focal point of US hostility.
ITUC-Africa commended the recent Expropriation Act, asserting that it is a democratically developed tool for correcting deeply entrenched racial and class inequalities.
The organisation also praised South Africa’s principled stance at the International Court of Justice, where it has taken a stand against human rights violations in Gaza.
The Trump administration’s attempts to vilify South Africa for these actions, ITUC-Africa insists, are politically motivated and seek to shield entrenched white minority privilege at the expense of justice for the non-white majority.
The ITUC-Africa called on African governments, trade unions, civil society organisations, and the international community to stand in solidarity, resist external bullying, and defend the right of all nations to determine their own futures, free from coercion and racist double standards.
The organisation reaffirmed its commitment to supporting South Africa’s democratic journey and its long overdue efforts to rectify the economic and social legacies of apartheid.
The organisation vowed to continue standing with South Africa in its pursuit of equity and justice, rejecting any form of external intimidation designed to derail its progress.