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Unions, govt set for crunch talks

Aug 11 2010 11:59

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Johannesburg - Unions representing more than 1 million civil servants and the government plan wage talks on Thursday, hours before a union deadline to reach a deal that would avert a prolonged strike.

"We are optimistic that the government will come back to us with a significant offer. Our members want to avoid protracted strike action," Sizwe Pamla, a spokesperson for the public sector union Nehawu, said on Wednesday. The group is a part of the country's largest umbrella labour group, Cosatu.

Cosatu unions and other civil service labour groups staged a one-day strike on Tuesday, seeking an 8.6% pay rise, twice the current rate of inflation, and a R1 000 monthly housing allowance.

They threatened a prolonged strike they said would bring the government to a halt unless a deal is reached by Thursday.

The action increased pressure on President Jacob Zuma's government to prevent a repeat of a massive public sector strike three years ago, which dented the economy and support for his predecessor, analysts said.

The government has offered 7% and R630 for housing, but analysts believe it is likely to raise its offer rather than risk a strike just before a policy-setting ANC meeting next month.

Analysts expect the ANC, which has a longstanding alliance with organised labour, to give in to the unions' demands. Such a deal would make it hard to bring the budget deficit down from 6.7% of gross domestic product without spending cutbacks elsewhere.

Separately, vehicle sector workers seeking pay hikes of more than triple the inflation rate went on an indefinite strike on Wednesday, hitting production.

 - Reuters

 
 
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