Cosatu says Gems ignored inflation guidance, leaving workers struggling with capped benefits and rising contributions.
Congress of South African Trade Unions (Cosatu) members picketed at the Government Employees Medical Scheme (Gems) head office in Menlyn Main, Pretoria, yesterday.
The workers said not only was inflation killing their budgets, but they were also restricted to capped doctor visits and limited health benefits.
This follows after a call from Cosatu KwaZulu-Natal provincial secretary Edwin Mkhize for lunch-hour pickets at all institutions, departments, facilities and service centres across the province while they submit a memorandum of demands.
Cosatu says Gems ignored inflation guidance
Earlier this week, Cosatu KZN met with its public service affiliated unions about what the union describes as a unilateral and unreasonable 9.8% increase in member contributions for 2026 announced by Gems.
“The mandate from workers is clear and unequivocal. No to the 9.8% ridiculous increase in Gems membership contributions,” Mkhize said.
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“This increase comes at a time when public servants are already suffocating under the escalating cost of living, stagnant wages, rising food and transport costs, and relentless economic pressures.
“A 9.8% increase is not only unjustifiable; it is insensitive and punitive to workers who keep the public service functioning under extremely difficult conditions,” he said.
“Our unions are concerned that, from January, members are paying 9.8% more, which constitutes a staggering 23.3% increase over two years, noting the 13.4% increase last year. This means that medical aid costs are rising far above wages and inflation.
Medial aid costs rising far above wage and inflation
“The Council for Medical Schemes recommended an increase of 3.3% for 2026. Gems ignored this guidance and imposed an increase of 6.5 percentage points higher, demonstrating a disturbing disregard for workers,” he said.
Among their demands are expanding access to health care, particularly for lower- and middle-income public servants and affordable, sustainable, cost-effective medical cover.
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Mkhize said that as a closed and compulsory scheme for public servants, Gems carries a special responsibility to protect workers, not to burden them.
Political analyst Piet Croucamp said Cosatu’s argument applies to almost all medical funds.
Union’s argument applies to almost all funds
“The problem is that medical inflation is out of control, which is driving up the costs for medical funds and they have no choice but to adapt to their members.
“Medical funds are subject to a host of statutory rules and regulations that determine their relationship with service providers and their members,” he said.
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