The Motor Industry Staff Association (MISA) has criticised Finance Minister Enoch Godongwana’s latest Budget Speech, warning that workers remain trapped by failing infrastructure, rising transport costs and weak state delivery.
In a strongly worded response, the union said government’s promises of macroeconomic stability and large-scale infrastructure investment offer little comfort to workers who face daily realities of collapsing roads, unreliable public transport and malfunctioning traffic systems.
“South Africa urgently needs service delivery,” said Martlé Keyter, MISA’s Chief Executive Officer: Operations.
Poor infrastructure
“Until infrastructure improves, logistics stabilise and public transport becomes reliable and affordable, workers and jobseekers continue to bear the cost of a state that promises more than it delivers.”
The criticism comes as President Cyril Ramaphosa continues to position infrastructure development as a key driver of economic growth. And he pledged to turn the country into a “construction site”.
The budget once again commits more than R1-trillion towards infrastructure spending over the medium term. However, MISA questioned government’s ability to translate allocations into tangible results. The union argues that without a credible implementation track record, workers cannot assume the spending will result in safer roads, stable electricity supply or functioning water systems. All these are critical to dealerships, workshops and the broader motor industry value chain.
Water crisis
The ongoing water crisis, MISA warned, continues to disrupt business operations. And it threatens livelihoods across sectors. Earlier this month, Toyota South Africa Motors President and CEO Andrew Kirby revealed that the company had to build its own dam at its Prospecton plant in KwaZulu-Natal to safeguard operations against recurring municipal water disruptions. This is a stark illustration of how major manufacturers are being forced to self-insure against failing infrastructure.
The union also expressed concern over increases to the fuel levy. It accuses government of failing to honour a 2022 commitment to review the country’s fuel-pricing methodology. It was to also include MISA in the process.
Fuel levy, RAF
“Workers already spend a huge portion of their income on transport. Any increase in fuel costs pushes them further into hardship,” Keyter said.
MISA further criticised the increase in the Road Accident Fund (RAF) levy. It described it as unjustified, given the fund’s long-standing financial distress.
“It is unacceptable that workers are asked to contribute more to a fund that remains technically bankrupt and plagued by mismanagement,” Keyter added.
“Without decisive reforms and accountability, budget promises will continue to ring hollow for South African workers.”
