*
South African state workers reject offer, plan strike*
http://af.reuters.com/article/southAfricaNews/idAFLDE67G10X20100817

 * Unions plan strike from Wednesday

* Pressure mounts on government to reach deal

  By Peroshni Govender

JOHANNESBURG, Aug 17 (Reuters) - South African public sector unions on
Tuesday rejected a revised government wage offer and said they planned a
mass strike from Wednesday that will bring public services to a halt in
Africa's largest economy.

Analysts however expect a deal to be reached before a coalition of unions,
representing 1.3 million civil servants including police, customs officials,
teachers and health workers, stages a prolonged stoppage that could deal a
blow to commerce and trade.

"From tomorrow there will be a total shutdown and the beginning of a
protracted strike and we will only stop when government responds," said
Thobile Ntola, president of the SADTU teachers union, a part of the labour
coalition. The strike threat by unions in the country's largest umbrella
labour group COSATU increases pressure on the government to improve its
terms or risk what could be the worst strike by state workers for three
years.

Economists worry that whatever deal is reached will swell state spending as
the government tries to bring its deficit down from 6.7 percent of gross
domestic product.

Last week the government offered to increase the monthly housing allowance
to 700 rand ($95) from a previous offer of 630 rand, but refused to increase
its wage rise offer of 7 percent.

The housing allowance alone would be equal to about 1 percent of government
spending.

The unions are demanding an 8.6 percent pay rise, more than double the
inflation rate, and 1,000 rand for housing. (Writing by Jon Herskovitz;
editing by Giles Elgood)



**

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