JOHANNESBURG, July 11 (Reuters) – South African public
service unions declared a formal dispute with the government on
Wednesday, raising the prospect of major industrial action in
Africa’s biggest economy after months of wage negotiations.
Eight unions affiliated to the powerful Congress of South
African Trade Unions (COSATU) said they had taken the decision
after the government withdrew an enhanced offer of a 6.9 percent
wage increase and reverted to an earlier 6.7 percent.
The unions, whose members include teachers and health
workers, are asking for a 7.9 percent hike.
Declaration of a dispute is the first step towards launching
a strike.
In its February budget, the government allowed for a wage
increase of only 5 percent for public servants, adding that a
huge state salary bill was crowding out investment in
infrastructure and other key productive sectors.
The government has faced hundreds of protests in poorer
communities and townships over problems with electricity, water,
sanitation, public transport and health and education services.
Chief union negotiator Mugwena Maluleke said a mediator
would now have to be appointed in the wage dispute, with talks
expected to last about 30 days.
In the event of “failure to find a solution, we will hit the
streets,” he told a news conference.
On Tuesday, the government cancelled a news conference
called to announce details of the “wage settlement” reached
between the two sides.
(Reporting by Cosmas Butunyi; Editing by Ed Cropley/Ruth
Pitchford)
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