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Major state workers' union rejects pay deal

Johannesburg - One of South Africa's largest state workers' unions said on Wednesday it had rejected a new wage offer from the government aimed at ending a three-week strike by about 1.3 million workers.

The announcement from Nehawu, a union of more than 200 000 workers in healthcare and other services, comes just ahead of a meeting of a coalition of more than a dozen state workers' unions, where the group is expected to give its verdict on the deal.

"Nehawu has rejected the offer," Sizwe Pamla, a Nehawu spokesperson, told Reuters. The country's biggest union for state workers, teachers' group Sadtu, has also indicated its workers have rejected the deal.

The two unions are in the country's largest federation Cosatu and are seen as having a major influence on the way that other state workers' unions in the umbrella labour group vote.

Cosatu said just ahead of the announcement that it was suspending a one-day sympathy strike this week from all of its member unions - which could have shut mines - to give state workers more time to consider the new wage offer.

That decision removes some of the pressure on the ANC to quickly reach a deal or risk massive labour action that could have dealt a blow to the SA economy.

Cosatu has more than 20 affiliated unions and claims nearly 2 million members.

The government offered state workers, including teachers, nurses, customs officials and office clerks, a pay rise of 7.5% and R800 a month for housing. The unions are demanding an 8.6% rise and R1 000 for housing.
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