S. Africa gov’t, strikers brace for new wage talks

Author: 
REUTERS
Publication Date: 
Sat, 2010-09-04 01:38

The unions rejected a government offer of 7.5 percent pay raises, nearly double inflation, and 800 rand a month for housing, with workers demanding a better offer.
The parties have a bargaining session planned for Monday where they will try to find a way to end the strike that has been the biggest in terms of lost man days in three years.
The strike has hit hardest the legions of poor who depend on state services to live and has quashed the euphoria the country felt after hosting the June-to-July soccer World Cup.
“It can go either way on Monday. But whatever the outcome it will be a united position from COSATU and the independent unions,” said a union spokesman who did not want to be named.
The unions, who represent court clerks, prison guards, customs officials and nurses, are seeking pay rises of 8.6 percent and 1,000 rand a month for housing. Most are affiliated with COSATU, the country’s largest labor federation.
“Both parties have dug themselves into supposed final positions, which to some extent will become an obstacle to bringing the strike to an end,” said labor lawyer Tony Healy.
Government officials said the state cannot afford the offer it has already put on the table and there is no more room in the budget to increase its offer, which would swell state spending by about one percent.
“The one certainty is that the strike will not be resolved on the basis of labor’s current demands,” Healy said.
Union leaders have said they understand the government’s financial constraints and will try to convince rank and file to accept the deal.
COSATU planned a Friday strategy meeting to discuss the deal with its members, the more militant of which, analysts said, may not want to budge and could drag the strike out even longer, defying the wishes of union leaders, analysts said.
“We are going as quickly as we can and will make an announcement when members give us their mandate. I am not sure when that will be,” COSATU’s President Sidumo Dlamini told Reuters.
Pay and benefits are the biggest expenditure category in the state budget. In 2006/07, about 35 percent of tax revenue went toward it. That rose to about 47 percent in 2009/10.
“A greater volume of taxpayer money will have to be spent on state employees, thereby detracting from much needed expenditure on improving education, health, transport and infrastructure,” said NKC Independent Economists economist Christie Viljoen.
COSATU put on hold a plan to have all its near two million members in vital industries including mining, go on a sympathy strike to allow the state workers to consider the new offer.
A prolonged strike by all COSATU members would put enormous pressure on the government to reach a deal to prevent any major blow to Africa’s largest economy.
The strike has seen South Africans volunteering at hospitals and the private sector filling gaps left by striking workers.
Emergency service provider Netcare said it treated about 730 patients stranded by the strike, costing about 15 million rand.
 

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