By Peroshni Govender
PRETORIA, June 19 (Reuters) – A South African minister on
Tuesday called unions representing about 1.3 million state
workers back to negotiations over pay increases, seeking to
avert a strike that could shut down hospitals and schools.
But Lindiwe Sisulu, minister of public administration, also
said any wage increase above the government’s current 6.5
percent offer would add to the debt of the national budget.
Wages for government employees are the largest sector of
state spending, usually costing an amount equal to more than 40
percent of tax revenue. Talks over pay increases broke down last
week, raising the threat of a strike.
“The state of our global economy, the reality of our own
limited budget, our own credit rating and credibility make me
hope and believe that labour and ourselves as government have no
appetite for a dispute and worse a strike,” Sisulu told a news
conference.
South Africa had originally budgeted for a 5 percent
increase but was forced to increase its offer as inflation has
inched up in the past months, hitting 6.1 percent in April.
Sisulu said 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 aside.
South Africa would have to dip into its reserves if unions
rejected the offer, she said.
The two sides are not far apart, after unions dropped their
latest demand of an 8 percent increase and appear willing to
accept just over 7 percent – the inflation rate plus 1 percent,
union sources said.
But since there are so many government employees, small
increases add up quickly. A perk to provide civil servants with
about $100 a month to help them with housing costs the country
as much as it pays each year to run its court system.
($1 = 8.3383 South African rand)
(Editing by Jon Herskovitz and Alessandra Rizzo)
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