S African state workers reject offer, to strike from today

S African state workers reject offer, to strike from today
Reuters/Johannesburg
Latest Update: Wednesday18/8/2010August, 2010, 12:44 AM Doha Time

South African public sector unions yesterday rejected a revised government pay offer and said they planned a mass strike from today that will bring public services to a halt in Africa’s largest economy.

Analysts however expect a deal to be reached before a coalition of unions, representing 1.3mn civil servants including police, customs officials, teachers and health workers, stages a prolonged stoppage that could damage commerce and trade.

“From tomorrow there will be a total shutdown and the beginning of a protracted strike and we will only stop when government responds,” said Thobile Ntola, president of the Sadtu teachers’ union, a part of the labour coalition. The strike threat by unions in the country’s largest umbrella labour group Cosatu increases pressure on the government to improve its terms or risk what could be the worst strike by state workers for three years.

Economists worry that whatever deal is reached will swell state spending as the government tries to bring its deficit down from 6.7% of gross domestic product. Last week the government offered to increase the monthly housing allowance to 700 rand ($97) from a previous offer of 630 rand, but refused to increase its wage rise offer of 7%. The housing allowance alone would be equal to about 1% of government spending.

Unions and government negotiators are to meet again and workers will again push their demand of an 8.6% pay rise, more than double the inflation rate, and 1,000 rand for housing. The government had previously said it could not afford to increase its offer and has threatened to unilaterally impose the increase.

“Should they dare do that, that will be a war. We will report for duty but will do no work and the public service will come to standstill,” said Ntola. There is pressure on both sides to reach a deal.

A mid-grade public sector employee makes on average 8,800 rand ($1,200) a month in salary and benefits, above the national average wage of 6,383 rand, according to government figuresSource: http://newsessentials.blogspot.com/2010/08/s-african-state-workers-reject-offer-to.html