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'Wage demand won't affect inflation'

Johannesburg - Cosatu firebrand Tony Ehrenreich has rebuffed views that the current 8.6% wage demand at the centre of the crippling public sector strike would have an impact on inflation.
 
In line with general secretary Zwelinzima Vavi's speech to a crowd of protesters outside parliament on Tuesday, he told I-Net Bridge on Thursday that a low base exists among most salary earners in the unions Cosatu represents in the public sector,  and that it could even be argued that salaries could be raised beyond current demands without having much impact.

He feels recent parastatal pay increases of close to 10% had led to pressure for other workers to demand the same.

"So there will not be much impact (on inflation) - in fact, it could be raised," he told I-Net Bridge in an exclusive interview.

Government has offered 7% and unions have rejected this. They are due to meet on Thursday to discuss further.

 - I-Net Bridge
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