SA government gives unions deadline to accept wage deal

JOHANNESBURG – South Africa’s government gave unions an ultimatum to accept a revised pay offer yesterday or make do with a previous lower offer in its final push to end a costly three-week civil service strike.

But the largest public service union, which represents the country’s teachers, said the offer was still not enough. The government’s settlement salary package includes a 7,5 per cent wage increase and a higher housing allowance of 500 rand ($70) from 456 rand, union officials said.But that was still below the unions’ revised demand of a 9 per cent pay raise.The government says a drastic wage increase would crowd out other spending while the central bank fears inflation-beating pay rises could further fuel price pressures and prompt higher interest rates in Africa’s biggest economy.There were no signs of a breakthrough as the powerful COSATU labour federation prepared to hold a meeting at 14h00 GMT to decide on a response to the government’s deadline for an agreement by 16h00 GMT.The South African Democratic Teachers Union (Sadtu), the biggest public service union, said it rejects the latest offer.”If the employer does not improve the offer, we will have further disruption of schools,” Sapa news agency quoted Sadtu deputy general secretary Don Pasquallie as saying.The stalemate has highlighted the divide between the ruling African National Congress (ANC) and its trade union allies, which accuse President Thabo Mbeki of promoting big business and leaving behind millions of poor South Africans.Hundreds of thousands of workers have taken part in the strike, which began on June 1.Union officials accused the government of using strong-arm tactics in its latest offer.”We are not sure whether it is talks that we are going for anymore because this is now just (the government’s) take it or leave it situation,” Mannie de Clercq, general secretary of the Public Servants Association of South Africa, told Reuters.Analysts say the strike has become a demonstration of workers’ power ahead of a leadership congress this year that may see the ANC name a successor to Mbeki.Mbeki is due to step down as president in 2009, and there is speculation the ANC may steer away from his market-friendly policies, which COSATU and other critics say have failed to dent economic disparities that linger from the apartheid era.Nampa-ReutersThe government’s settlement salary package includes a 7,5 per cent wage increase and a higher housing allowance of 500 rand ($70) from 456 rand, union officials said.But that was still below the unions’ revised demand of a 9 per cent pay raise.The government says a drastic wage increase would crowd out other spending while the central bank fears inflation-beating pay rises could further fuel price pressures and prompt higher interest rates in Africa’s biggest economy.There were no signs of a breakthrough as the powerful COSATU labour federation prepared to hold a meeting at 14h00 GMT to decide on a response to the government’s deadline for an agreement by 16h00 GMT.The South African Democratic Teachers Union (Sadtu), the biggest public service union, said it rejects the latest offer.”If the employer does not improve the offer, we will have further disruption of schools,” Sapa news agency quoted Sadtu deputy general secretary Don Pasquallie as saying.The stalemate has highlighted the divide between the ruling African National Congress (ANC) and its trade union allies, which accuse President Thabo Mbeki of promoting big business and leaving behind millions of poor South Africans.Hundreds of thousands of workers have taken part in the strike, which began on June 1.Union officials accused the government of using strong-arm tactics in its latest offer.”We are not sure whether it is talks that we are going for anymore because this is now just (the government’s) take it or leave it situation,” Mannie de Clercq, general secretary of the Public Servants Association of South Africa, told Reuters.Analysts say the strike has become a demonstration of workers’ power ahead of a leadership congress this year that may see the ANC name a successor to Mbeki.Mbeki is due to step down as president in 2009, and there is speculation the ANC may steer away from his market-friendly policies, which COSATU and other critics say have failed to dent economic disparities that linger from the apartheid era.Nampa-Reuters