Public Service: Strike on cards after talks stall

PUBLIC service unions and the government have failed to reach an agreement on workers’ pay, a government official confirmed on Saturday, raising the prospect of a major strike. Any strike action by the 1.3 million nurses, teachers and police officers will hurt investor sentiment and hit economic growth, forecast at 2 percent this year, as South Africa struggles to escape the effects of a wave of strikes in its key mining and manufacturing sectors. Unions, including those affiliated to Cosatu, are demanding above inflation pay rises of 10 percent across the board, in addition to significant increases in housing and medical aid allowances. They are in deadlock with the government, which is offering a consumer price index-related 5.8 percent increase in a three-year deal that will replace an existing deal that expires tomorrow. – Reuters