Strike in South Africa:

Govt increases wage offer

S AFRICA: South Africa’s Government increased its wage raise offer to unions representing 1.3 million striking state workers, a source said Monday, trying to end a strike that threatens Africa’s largest economy.

The offer came in talks arranged after President Jacob Zuma’s ordered Ministers to negotiate immediately to end the nearly three-week-long walkout that has closed schools, prevented treatment at hospitals and harmed investor sentiment.

The Government increased its offer for a wage increase to 8 percent from 7 percent and raised its offer for a monthly housing allowance to 800 rand ($108.6) from 700 rand, a union source close to the talk told Reuters.

The source said unions would likely look favourably on the offer, saying “the strike will be over.”

Government spokesman Themba Maseko said he could not comment on whether the offer had been made.

Unions have been demanding 8.6 percent and 1,000 rand.

Even if the Government raised its offer to something more palatable, the unions are unlikely to respond quickly as they would need to consult their rank and file members.

The government and unions were still in negotiations that could end early on Tuesday, officials said. Public Service Minister Richard Baloyi said in a statement prior to negotiations that the government was bringing a new offer to the table, without offering details.

So far, the Government has said it cannot afford the demand for increases of more than double inflation to end the strike, which threatens to spread across the economy. Johannesburg, Tuesday, Reuters