20100817
reuters

JOHANNESBURG (Reuters) - South African public sector unions on Tuesday rejected a revised government pay 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 damage 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.

Wednesday's work stoppage is unlikely to affect the economy but will disrupt schools and medical centres as thousands of teachers and workers in the health sector go on strike. Other unions are expected to consult their members on whether to stage work stoppages.

"Our members have rejected the offer but we will still need to consult them because if we strike, the 'no work, no pay' rule applies," said Chris Kloppers of the Independent Labour Caucus which represents about 300,000 state workers.

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