Organised labour has served the National Economic Development and Labour Council (Nedlac) with section 77 notices over rising medical aid costs, the need to protect jobs in the smelter industry and ongoing water and electricity challenges.A section 77 notice under the Labour Relations Act is a formal document served by a trade union on Nedlac to declare its intention to embark on socioeconomic protest action. Nedlac is a statutory body that brings together government, labour, business and community groups to negotiate and seek consensus on social and economic policies.Nedlac achieved an unqualified audit outcome for the 2025/26 financial year and recorded an annual performance rate of 94%.In her presentation at the Nedlac annual summit in Pretoria on Friday, Nedlac acting executive director Nobuntu Sibisi said the Federation of Trade Unions of SA (Fedusa) had served a notice on rising medical aid costs. Business Day has reported that the Government Employees Medical Scheme (Gems) faced intense scrutiny and regulatory blocks in 2026 over hefty contribution hikes and an about R2bn funding shortfall. Gems members faced a 13.4% contribution increase in 2025, followed by a steep initial 9.8% hike for 2026, significantly outpacing public service wage increases and general inflation. The medical aid scheme reported a deficit for 2025 after paying out more than R65bn–R67bn in claims against lower contributions, driven by higher hospital admission rates and rising prescribed minimum benefit expenditures. Sibisi said the ANC-aligned Cosatu served the council with a notice calling on the government to provide support protecting industrial capacity and jobs in the smelter industry. The energy-intensive smelting industry was dogged by a severe crisis driven by soaring Eskom electricity tariffs that had surged more than 900% since 2007, making power costs up to 60% of total production. To rescue the industry, the government and Eskom structured a negotiated pricing agreement cutting electricity tariffs to R0.62 per kWh for major ferrochrome participants, down from previous highs above R1.36 per kWh. Cosatu Free State’s notice pertained to “unreliable water and electricity supply” affecting workplaces and households in Maluti-A-Phofung Municipality, Qwaqwa. In July, the government launched the national water access acceleration programme aimed at expanding access to clean water for underserved communities countrywide. This was to enable the elimination of critical water shortages that have befallen the country. As part of a broader public infrastructure investment drive, the government has allocated R156bn over the next three years to water and sanitation infrastructure to improve service delivery and strengthen long-term water security. One of the priorities identified in the state of the nation address in February was to address the water crisis causing immense hardship for households, communities and businesses countrywide. In May, Ramaphosa said the national water crisis committee, established to co-ordinate government efforts in addressing water scarcity, was dealing with immediate challenges in the most affected municipalities while changing the way water infrastructure was funded and managed. Water challenges saw Johannesburg, the country’s largest metro and economic and financial hub, go without water for weeks earlier this year, prompting Ramaphosa to establish the crisis committee. According to the 2022 census, more than 82% of households in the country had access to piped water either inside their dwelling or inside their yard. The proportion of households with no access to piped water more than halved in 1996-2022. Ramaphosa said water security was among the government’s most urgent priorities. “Households and businesses experiencing shortages and outages have had enough, and underserved communities across the country waiting for taps to be installed 32 years into democracy are justifiably tired of waiting.” Issues considered by Nedlac, whose executive director is Makhukhu Mampuru, during the period under review pertained to, among other things, water and sanitation challenges; reforms on strengthening social protection, social security, retirement reform and food security; National Health Insurance; a review of the white paper on local government; and higher education and training reforms.Business Day
Labour groups turn to protest action over medical aid, jobs and basic services
Section 77 notices put pressure on government over economic and service challenges






