By Johnathan Paoli
The National Education, Health and Allied Workers’ Union (NEHAWU) and the National Student Financial Aid Scheme (NSFAS) have concluded their seven-month wage dispute, bringing an end to a protracted period of negotiations and industrial action that disrupted operations within the student funding body.
NEHAWU Western Cape Provincial Secretary Baxolise Mali praised the “resilience and discipline” of union members who “maintained solidarity” throughout the negotiations.
“NEHAWU as a red fighting militant union, appreciates the loyalty, and patience of our members during these protracted negotiations. As NEHAWU, we will continue without flinching in championing the interests of our members and workers at all materials,” he said.
The settlement provides for a 7 percent across-the-board salary adjustment for all employees within the NSFAS Bargaining Unit, covering levels three to twelve, with the increase backdated to April 1, 2025.
Workers will also benefit from a substantial rise in the housing allowance, which has been increased by 83.3 percent from R1,200 to R2,200. Of this amount, R1,793 will take effect from April 2025, while the remaining R227 will be implemented in April 2026.
In addition, the agreement introduces once-off long service awards, recognising employees’ dedication and years of service with payments ranging from R5,000 for five years of service to R30,000 for thirty years.
While these improvements address some of the most pressing demands, both parties agreed that several other matters would require ongoing engagement through established forums.
Issues such as the staff dependent bursary policy, early retirement options, hybrid working arrangements, the recognition threshold for new unions, further consultations on decentralisation, and the implementation timeline for job evaluation outcomes will continue to be discussed within the National Bargaining Forum and the National Consultative Forum.
Both NSFAS and NEHAWU agreed that by resolving the long-standing dispute, not only were immediate employee grievances addressed, but also set the stage for more constructive dialogue in the future.
In an official statement, NSFAS acknowledged that the bargaining process had been lengthy and, at times, difficult, but said that the discussions helped clarify expectations between management and staff.
NSFAS said that the successful resolution of the dispute now allows all parties to concentrate on bringing the 2025 academic year to a smooth conclusion and preparing for an efficient start to 2026.
“NSFAS workers are a core part of the organisation’s delivery machinery. They are at the coal face of student funding processing applications, appeals, managing cases and disbursements and providing a service to Higher Education Institutions,” the organisation said.
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