Trade union federations Cosatu and Fedusa have given the Government Employees Medical Scheme (Gems) until next Wednesday to return with a substantive response on labour’s demand for a review of the 9.5% contribution increase this year.
The federations made this call after they engaged with Gems on Tuesday on what they described as an unaffordable 9.5% hike imposed on public servants from February 1.
Cosatu and Fedusa said Gems came to the meeting with explanations that did not shift the hardships faced by workers.
“The scheme’s presentation confirmed what organised labour has warned all along: the crisis facing Gems is not an act of nature. It is the result of governance weakness, weak cost controls, poor planning, unmanaged financial leakages including fraud, delayed intervention and executive failure.”
Gems has defended its decision to increase member contributions in 2026, saying the hikes were necessary to keep the scheme financially stable and able to meet the healthcare needs of public service workers.
If Gems returns with another technical defence instead of a real review, Cosatu and Fedusa will escalate the campaign
— Cosatu and Fedusa
Gems also said without the increases, it cannot fulfil its promise to members to maintain a comprehensive basket of benefits, meet its obligation to pay claims and remain market-competitive and financially sustainable.
The union federations said they entered the meeting expecting Gems to table a serious solution. “That expectation was not met. Instead, Gems leaned on actuarial modelling, reserve requirements, claims pressure and industry comparisons to justify an increase that workers cannot afford.”
Labour rejected this defence. “An actuarial report may explain how Gems priced the crisis, but it does not absolve the board and executive management from responsibility for how the scheme got here,” they said.
Gems was not established as a commercial medical scheme, they said. “It was built as a social solidarity scheme for public servants. It cannot now behave like a private scheme by shifting institutional failure onto members while asking workers to accept reduced benefits, higher contributions and weaker protection.”
The federations said labour has made it clear that the 9.5% increase must be substantively reviewed.
Cosatu and Fedusa have given Gems until May 6 to return with a substantive response. “That response must deal directly with the review of the 9.5% increase.”
The federations also demanded a memorandum of understanding that provided for leadership level engagements at least twice a year, supported by a working committee through the Public Service Co-ordinating Bargaining Council.
“If Gems returns with another technical defence instead of a real review, Cosatu and Fedusa will escalate the campaign.”
They said all options were on the table, including intensified workplace mobilisation, mass demonstrations including the withdrawal of labour, regulatory interventions and legal challenges.
TimesLIVE
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