JOHANNESBURG, June 26 (Reuters) – 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 $1 billion to budget spending.
A union official said on Tuesday the government had offered
a three-year deal with a 6.7 percent increase for this year,
with second year increases of inflation plus 0.7 percent and
third year increases of inflation plus 0.5 percent.
“Negotiations seem to be back on track,” said Chris Klopper,
spokesman 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 percent wage increase this year
while unions were looking for a figure over 7 percent.
Public services minister Lindiwe Sisulu said last week the
6.5 percent offer would swell spending and cost the government
about 10 billion rand ($1.2 billion) more than had already been
set side.
Wages for government employees are the largest sector of
state spending, equivalent to more than 40 percent 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.
($1 = 8.4995 South African rand)
(Reporting by Jon Herskovitz; editing by David Dolan)
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