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Johannesburg - South African public sector unions on Tuesday rejected a revised government wage offer and said they planned a mass strike from Wednesday that will bring public services to a halt.
Analysts however expect a deal to be reached before a coalition of unions, representing 1.3 million civil servants including police, customs officials, teachers and health workers, stages a prolonged stoppage that could deal a blow to commerce and trade.
"From tomorrow there will be a total shutdown and the beginning of a protracted strike and we will only stop when government responds," said Thobile Ntola, president of the South African Democratic Teachers Union, a part of the labour coalition.
The strike threat by unions in the Cosatu umbrella labour group increases pressure on the government to improve its terms or risk what could be the worst strike by state workers for three years.
Economists worry that whatever deal is reached will swell state spending as the government tries to bring its deficit down from 6.7% of gross domestic product.
Last week the government offered to increase the monthly housing allowance to R700 from a previous offer of R630, but refused to increase its wage rise offer of 7%.
The housing allowance alone would be equal to about 1% of government spending.
The unions are demanding an 8.6% pay rise, more than double the inflation rate, and R1 000 for housing.