Business News
Hope for end to South Africa strike as unions vote on new offer
Sep 1, 2010, 12:44 GMT
Johannesburg - Hope was building in South Africa Wednesday for an end to a two-week-old public sector strike as unions representing over 1 million public servants canvassed their members on a new pay deal and called off a secondary strike.
The South African Democratic Teachers' Union, the National Education, Health and Allied Workers' Union and several other unions were voting on the government's latest offer of a 7.5-per-cent pay increase and an 800 rand (108 dollars) housing allowance.
The workers have been demanding 8.6 per cent more pay and 1,000 rand towards housing.
The state tabled the improved offer Tuesday in a bid to get public hospitals and schools back on their feet after a near-shutdown of basic education and healthcare.
Before that the government had been refusing to budge on its offer of a 7-per-cent increase and a 700-rand housing allowance, which already far exceeds inflation of 4.2 per cent.
Public Services Minister Richard Baloyi says the new offer will add 7 billion rand to government spending, forcing government to freeze new hires and delay the rollout of basic services to the poor.
Some workers say they are ready to return to work, to avoid losing more pay.
The state is docking the wages of the strikers.
Others say, however, the fact of losing two weeks pay has strengthened their resolve to go for broke.
In a sign that a resolution may be in the offing the Congress of South African Trade Unions, which regroups most of the striking unions, called off a secondary sympathy strike planned for Thursday.
COSATU had asked mining and manufacturing workers to down tools in order to extend the effects of the strike, which has claimed several patients' lives, to the entire economy.
In a statement announcing that strike was off, COSATU said: 'This is to give public servants' unions sufficient time to consult with their members and then to resume talks with the government.'

COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
