Budget 2026: Labour unions demand targeted support for vulnerable sectors

Some labour unions are demanding targeted industrial support for vulnerable sectors such as clothing, textiles and footwear when budget 2026 goes live om Tuesday.

Finance Minister Enoch Godongwana’s budget speech comes as local manufacturers buckle under pressure, including a tougher tariff regime which has impacted on exports.

Labour unions said the factory closures, retrenchments, and declining productive capacity across manufacturing, steel, mining value chains cannot be ignored.

Federation of Unions of South Africa (FEDUSA), Congress of South African Trade Unions (COSATU) and South African Federation of Trade Unions (SAFTU) agree that without rebuilding the domestic industry, revenue will remain constrained and unemployment entrenched.

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COSATU spokesperson Matthew Parks said, “The budget must be anchored upon tackling our dangerously high unemployment rate of 41.1% and weak 1.4% economic growth, entrenched levels of poverty and inequality, endemic crime and corruption.”

FEDUS said industrial policy must defend existing jobs while building new capacity in beneficiation and green manufacturing.

SAFTU said a job-creating budget is the only sustainable fiscal strategy.

The federation wants large-scale public investment in infrastructure and energy security, industrial rebuilding and localisation and expanded