Johannesburg - Unions representing about 1.3 million South
African state workers and the government have narrowed differences on a wage
deal, nearing a settlement on pay rises that could add more than $1bn to budget
spending.
A union official said on Tuesday the government had offered
a three-year deal with a 6.7% increase for this year, with second year
increases of inflation plus 0.7% and third year increases of inflation plus
0.5%.
“Negotiations seem to be back on track,” said Chris Klopper,
spokesperson for the Independent Labour Caucus, one of the more than a dozen
unions in contract talks with the government.
Talks over pay increases broke down last week, raising the
threat of a strike that could shut hospitals and schools. The government had
offered a 6.5% wage increase this year while unions were looking for a figure over
7%.
Public services minister Lindiwe Sisulu said last week the
6.5% offer would swell spending and cost the government about R10bn more than
had already been set side.
Wages for government employees are the largest sector of
state spending, equivalent to more than 40% of tax revenue. A perk to provide
civil servants with about $100 a month to help them with housing ends up
costing South Africa as much each year as its court system.
Union officials said the government is looking to cut the
amount it spends for housing allowances, which could pose a stumbling block.
Talks are set to continue but no date has been given for the next bargaining session.