Joburg - The Public Servants Association (PSA) says it is shocked by the recent increase of the repo rate by the South African Reserve Bank (SARB) Monetary Committee, an act they have called heartless.
The PSA says the latest increase by 25 basis points takes the repo rate to 7.25% and could leave public servants homeless as they can no longer afford these payments.
“SARB committee members seem to be oblivious to the reality faced by South Africans. Workers, and particularly public servants, are facing extreme financial pressures. The combined effects of constant interest rate increases, rising living costs and stagnant salaries pose a threat to government employees of losing their houses, which are steadily becoming unaffordable,” said the PSA
The trade union said the downgrading was also no longer an option for many employees who were drowning in debt with impaired credit.
“This situation is resulting in employees calling for early and partial access to pension fund savings to save their housing. Employees are not only paying increasing bonds and increased medical aid contributions, but must absorb high school fee costs owing to dysfunctional public schools and overcrowding and endure expensive food, fuel and electricity costs, leaving them very little financial room,” added the union.
The PSA said it had previously called upon the SARB to reconsider its monetary policy, which was not working for the country or assisting its most needy citizens.
“Constant interest rate increases do not assist in addressing rampant unemployment, inequality and poverty, which are fuelled by load shedding. The PSA calls on the National Treasury to urgently fast-track the launching of a housing bank to provide loans to public sector employees as the only solution for ‘homeless’ government employees. Many of these workers are compelled to rent backrooms in townships or cramped flats where safety and hygiene are absent,” added the union.
While the bank’s launch is being considered, the PSA urges the government to allow employees to access their savings in the Government Employees Housing Scheme, as it defies logic to continue saving money for someone who is unable to put food on the table.
“Struggling public sector employees are facing immediate pressing needs. Releasing such monies will assist them as the government has failed to afford them real salary increases for the past three years or allow them partial access to their pension money,” added the union.
The Star