Trade unions COSATU and FEDUSA have warned that a 9.5% increase in Government Employees Medical Scheme (GEMS) contributions is “excessive, unjust and unsustainable”.
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Trade unions COSATU and FEDUSA have given the Government Employees Medical Scheme (GEMS) until May 6 2026 to review its 9.5% contribution increase for public servants.
IOL previously reported that the two unions have warned that a 9.5% increase in Government Employees Medical Scheme (GEMS) contributions is “excessive, unjust and unsustainable”.
In a statement released to the media on Wednesday, the unions said they have placed the medical scheme on notice, demanding a review of the increase or risk of intensified worker action.
This comes after a meeting between the unions and GEMS, during which COSATU and FEDUSA rejected the scheme’s explanation for the 9.5% increase, saying it is unaffordable.
"GEMS was not established as a commercial medical scheme. 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 unions said.
"Labour has made it clear that the 9.5% increase must be substantively reviewed. GEMS must also engage the regulatory space properly, including whether relief can be sought from the Council for Medical Aid Schemes in relation to the 25% reserve requirement, instead of using compliance as a shield against affordability".
The unions added that GEMS must return with a substantive response addressing the proposed increase.
"COSATU and FEDUSA have given GEMS until 6 May 2026 to return with a substantive response. That response must deal directly with the review of the 9.5% increase. GEMS must also commit to a formal engagement framework with organised labour.
"Labour is demanding a memorandum of understanding that provides for leadership-level engagements at least twice a year, supported by a working committee through the PSCBC. Never again must workers be confronted with contribution increases and benefit changes as already-made decisions".
mthobisi.nozulela@iol.co.za
IOL Business