20110324
Reuters
JOHANNESBURG (Reuters) - South Africa's state employees have rejected the government's initial 4.8 percent wage offer linked to inflation, demanding a 10 percent increase, a union official said on Thursday.

"We are not going to take the offer to our members and rejected it outright. Negotiations are still ongoing and we are confident that we will reach a satisfying agreement," said Sizwe Pamla, spokesman for the National Education and Allied Workers Union.

Last year 1.3 million state employees, including teachers, police, prison guards, immigration officials and government clerks, walked off the job demanding an 8.6 percent pay increase and a 1,000-rand-a-month allowance for housing.

Workers and the state eventually settled on a 7.5 percent salary increase and monthly housing allowance of 800 rand after striking for about 20 days.

Unions were instrumental in helping President Jacob Zuma come to power in 2009. They have demanded better working conditions and higher pay, putting pressure on the government to find new funds just as it tries to reduce a deficit currently standing at 5.3 percent of gross domestic product (GDP).