‘Cut corruption, not clinics. Tax the rich, not the poor,' says Cosatu at Workers' Day rally

Daily Maverick

01-05-2025

While Treasury drafts the Budget and tries to plug the gap in revenue, Cosatu and the South African Communist Party have called for taxes on the rich rather than budget cuts that reduce public services.
As National Treasury works on its third draft of the 2025 Budget, leaders from the ANC's alliance partners – the Congress of South African Trade Unions (Cosatu) and the South African Communist Party (SACP) – have called on President Cyril Ramaphosa to prioritise taxing the wealthy and fighting corruption rather than imposing austerity measures that affect public services.
Treasury is working on a new draft of the 2025 Budget, which Finance Minister Enoch Godongwana will re-table on 21 May 2025. This follows the withdrawal of the proposed 0.5 percentage point VAT increase after a court ruling and political opposition, which created a significant revenue shortfall.
Speaking at the Kees Taljaard Stadium in Middelburg, Mpumalanga – the hub of South Africa's coal production – Cosatu president Zingiswa Losi addressed thousands of workers and paid tribute to the region's mine workers at a Workers' Day rally on Thursday, 1 May.
'Here in Mpumlanaga, surrounded by coal, surrounded by agriculture, surrounded by manufacturing and energy, workers are not guests here,' she said.
'We are the builders of the economy in this province. We are the producers of the economy in this province, we are the ones that keep this province and the entire country running.'
Rejecting austerity
'We must not be naive, comrades. We know for a fact that victories of yesterday are under attack today,' said Losi, referring to the ongoing struggles with unemployment and stagnant wages.
'And therefore, as a federation, we demand transformation, not tokenism. We demand redistribution, not cosmetic reforms.'
Addressing Ramaphosa, who sat behind her, Losi said: 'The control of the state is about its machinery to eliminate poverty, to eliminate unemployment and inequality, not to elevate tender premiers.'
Central to her speech was the demand that austerity measures, which she described as detrimental to essential public services, be reversed.
'As the alliance has spoken, we reject austerity logic that reduces the number of nurses to patients,' she declared.
'Austerity reduces the number of teachers per learner. Austerity reduces the number of police officers per community. We can no longer afford it.'
She called on Ramaphosa to ensure that cuts to vital services, including clinics, schools and law enforcement, were avoided, saying: 'Cut corruption, not clinics. Tax the rich, not the poor.'
Losi also acknowledged that corruption within the government had contributed to the country's economic challenges. 'State Capture and corruption was not imported outside. It was homegrown,' she remarked,
She further praised workers who, in her view, were rebuilding key sectors of the economy, such as Eskom, Transnet and the South African Revenue Service (SARS), 'because it is workers who are cleaning up the mess. It is never ministers and never billionaires, but workers.'
SACP general secretary Solly Mapaila echoed the opposition to austerity measures, which he said 'are budget cuts, a symbol of neoliberal capital'.
He called for the government to 'turn against capitalism and neoliberalism', and advocated for a tax system that targets capital income rather than placing the burden on the working class.
'What we are calling on the Treasury to do as they are preparing a revised Budget is to increase capital income tax… That will give us four times what they wanted to do with the VAT.'
He also called for measures to ensure SARS can recover unpaid taxes from capitalists, emphasising the need to focus on recovering 'almost R800-billion'.
VAT increase
Chanting 'down with the VAT and GNU' and 'forward with the NHI [National Health Insurance]', Mapaila strongly opposed the proposed VAT increase, labelling it a 'reactionary' measure that would disproportionately burden the poor.
Mapaila has been one of the strongest critics of the ANC entering a government of national unity (GNU) that includes the DA.
Losi saluted Parliament for rejecting the 'regressive VAT hike' and said the Budget should be 'progressive and not punishing'.
'The Budget must be able to stimulate economic growth, it must create jobs and it must tax the wealth,' she said.
'We are saying fix municipalities, pay workers, fire corrupt municipal managers. End the rot and do it now.'
Ramaphosa on the GNU
Praising Cosatu for its role in the Tripartite Alliance, Ramaphosa told the rally: 'Even as we are in a government of national unity, we were able to make sure the wishes of our people are fulfilled; be it the Bela Act, be it the Expropriation Act – all that has happened because of you [Cosatu].'
Ramaphosa reaffirmed the government's commitment to implementing the National Health Insurance (NHI), which was met with enthusiastic support at the rally. This was part of his broader acknowledgement of the alliance's success in advancing progressive legislation despite the challenges of governing within the GNU framework.
In the President's written speech, Ramaphosa acknowledged that while some parties in the GNU have historically opposed transformation, all have agreed to a Basic Minimum Programme of Action that protects workers' rights and aims to drive inclusive growth, create jobs and reduce poverty.
He did not read the comments during the rally.
Referring to the recent Budget process, Ramaphosa noted the unprecedented agreement to table a revised Budget, following engagements with GNU partners and stakeholders.
Another part of his prepared speech that he omitted read: 'We are committed as the GNU to adopt a Budget that promotes inclusive growth, protects the vulnerable and advances the development of all our people.' DM