Trade union federations, including the Federation of Unions of SA, are now preparing for urgent talks with the scheme in a bid to halt further demonstrations and push for an overhaul of its contribution structure.
Speaking to Channel Africa on Tuesday, FEDUSA General Secretary Riefdah Ajam described the increase as “regressive”, “unjustifiable” and a betrayal of GEMS’s founding purpose. “Over a two‑year period, the scheme has experienced an increase of more than 23%. Workers do not receive increases of that magnitude. It is catastrophic,” she said.
Ajam warned that the impact on public servants, especially those in lower income bands, is severe. “When collective bargaining delivers a 4.4% wage rise, and medical increases reach nearly 10% this year after 13.4% last year, how do you expect members to live a dignified life?” she said. “This is crippling them.”
She said the core problem lies in both affordability and the complete lack of consultation with organised labour. Unions say GEMS informed members of the increase only a day before implementation. “This is not consultation. It weakens collective bargaining and defies every principle of engagement,” Ajam said.
She added that the increase contradicts recommendations from the Council for Medical Schemes and undermines GEMS’s original mandate as a social‑solidarity instrument created to ensure affordable access to healthcare for public servants. “GEMS was never intended to operate like a commercial enterprise,” she said.
Ajam also criticised GEMS for what unions describe as excessive governance costs. “How do you justify holding more than 28 meetings in one financial year at a cost of over $680 000, enriching board members while crippling workers with double‑digit increases?” she said. “This is thuggery at the worst levels.”
Asked about alternatives, Ajam said unions are examining market comparisons but emphasised that the priority is compelling GEMS to return to its founding principles. “We need constructive, honest engagement. Workers cannot be pushed into destitution,” she said.
–ChannelAfrica–
