The Public Servants' Association (PSA) has put the South African Revenue Service (SARS) on notice that it intends to go on strike after it reached a deadlock with the tax body during wage negotiations.

If the deadlock at the Commission for Conciliation Mediation and Arbitration (CCMA) is not broken ahead of time, the PSA strike is set to begin next week Thursday. The union served SARS with notice of a strike in terms of section 64 of the Labour Relations Act. The union is demanding a CPI plus 7% increase be applied to across the board.

PSA general manager Marcus Ramakgale wrote a letter to SARS Commissioner Edward Kieswetter on Wednesday notifying him of the union's plans to strike if the employer was not willing to budge from its final offer of a zero-percent wage increase.

"The outcome of the conciliation was that the dispute remained unresolved, and the CCMA Commissioner issued a certificate to that effect on 31 March 2022. Parties deliberated on the picketing rules and the CCMA ruled on the picketing rules on 13 April 2022," Ramakgale wrote.

Ramakgale told Kieswetter in the letter that the PSA was prepared to resolve the dispute through negotiations to avoid a strike, if the employer was willing to adjust its position.

PSA said it demands full and equal medical aid and housing allowance for all employees. The union also demands an annual adjustment upwards on pay progression of 1.5%.

SARS spokesperson Siphithi Sibeko the tax body was waiting for formal documentation including approval from the local authority for industrial action to commence. Sibeko said SARS will respond in due course.