SOUTH AFRICA: Public service strike suspended

Record ID: 339541

  • Title: SOUTH AFRICA: Public service strike suspended
  • Date: 7th September 2010
  • Summary: COSATU PUBLIC SERVICE UNION AND INDEPENDENT LABOUR COSATU ADDRESSING MEDIA MEDIA LISTENING (SOUNDBITE) (English) THOBILE NTOLA, REPRESENTING COSATU PUBLIC SERVICE UNIONS, SAYING: "The hope is now expressed that workers will be able to return to work stations, and that service delivery will resume. Labour recommits the respective union and their members to quality servic
  • Embargoed: 22nd September 2010 13:00
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  • Location: South Africa
  • Country: South Africa
  • Topics: Employment
  • Reuters ID: LVAEM4TG9E98CKGDN5ZIIB8Z2SIO
  • Story Text: South African public sector workers suspended a pay strike on Monday (September 6) as it entered its fourth week, union officials said.
    The strike by 1.3 million workers has affected education, healthcare and the judiciary. Strikers have demanded a double inflation 8.6 percent pay rise and a 1,000 rand (135 U.S. dollars) a month housing allowance.
    "Labour has decided to suspend the strike and this does not mean we have accepted the state offer," 19 unions representing the state workers said in a joint statement.
    The unions said they had 21 days to finalise discussions with their members on a draft agreement.
    President Jacob Zuma's government raised its offer to 7.5 percent and 800 rand for the housing allowance last week but workers rejected the deal and unions asked for more time to explain the offer to their members.
    Government officials said the state could not afford the offer they had already put on the table and there was no more room in the budget to increase the offer, which would swell state spending by about 1 percent.
    The biggest strike since 2007 in terms of lost man days has left bonds, stocks and the rand largely unaffected, but market players said the strike would cap gains by the rand and could have a bigger impact if it drags on.
    Economists predict that the labour action is costing the economy about 1 billion rand a day.
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