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SAfrica state workers union says strike plan on hold

Published 08/13/2010, 05:16 AM
Updated 08/13/2010, 05:20 AM
PL
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* Fresh government offer likely delays mass strike

* Major unions says new terms more palatable

* Pressure on government to reach deal

By Jon Herskovitz

JOHANNESBURG, Aug 13 (Reuters) - A major South African public sector union will suspend any strike plans for at least a week so its members can consider a revised government wage package, a union official said on Friday.

The government on Thursday improved its offer to a coalition of unions representing about 1.3 million state workers, who have threatened a mass strike they say will bring the government to a halt.

"This one is still not in the ballpark but it is closer to the ballpark," Manie De Clerq, spokesman for the Public Servants Association union and its more than 200,000 members, told Reuters.

"It will take about a week for the workers to decide on whether to accept the offer."

The government offered to increase the monthly housing allowance to 700 rand ($95) from a previous offer of 630 rand, but kept its wage rise offer at 7 percent. The unions are demanding an 8.6 percent pay rise and 1,000 rand for housing.

Representatives from the other unions in the coalition plan a news briefing later on Friday but are not likely to make good on their threats for a mass strike in the next few days to that they can allow their members to consider the offer.

The strike threat has put pressure on the ruling African National Congress, which has a long alliance with organised labour, to reach a deal to prevent what could be the biggest civil servants strike in three years.

The government has said it cannot afford the unions' demands and any deal will swell state spending as it tries to bring the deficit down from 6.7 percent of gross domestic product.

The public service minister said the government would be forced to make cuts elsewhere, which could stoke anger among the poor at President Jacob Zuma, who has already faced protests for not doing enough to provide them with better schools, housing, security and utility services.

A mid-grade public sector employee now makes on average 8,800 rand a month in salary and benefits, above the national average wage of 6,383 rand, according to government figures.

Separately, he National Union of Mineworkers said its latest wage talks with Impala Platinum had collapsed and the union would consult its members next week on whether to embark on a strike. (Reporting by Jon Herskovitz; Editing by Giles Elgood)

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