Business Day *Government raises wage offer to strikers* *Reuters, Business Day, Johannesburg, 31 August 2010*Government has increased its wage offer to about 1.3 million striking state workers, trying to end a nearly three-week-long labour action, a government official said on Tuesday.
The government increased its offer for a wage increase to 7.5 percent from 7 percent and raised its offer for a monthly housing allowance to R800 from R700. Unions have been demanding 8.6 percent and 1,000 rand.
A union source had told Reuters on Monday the offer was for an 8% increase but a public service ministry spokesman said that the correct amount was 7.5%.
Public Service Minister Richard Baloyi said in a statement prior to negotiations that the government was bringing a new offer to the table, without offering details. So far, the government has said it cannot afford the demand for increases of more than double inflation to end the strike, which threatens to spread across the economy.
Yesterday President Jacob Zuma ordered his ministers to go back to the negotiating table for new talks to end the crippling stayaway.
The strike has all but shut down state services, with schools and hospitals being most visibly affected. It has also put new strain on the African National Congress's already shaky alliance, especially its ties with the Congress of South African Trade Unions (Cosatu).
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