South Africa state workers’ verdict looms, strike widens
JOHANNESBURG (Reuters) – About 70,000 workers seeking double-digit wage increases in South Africa’s petrol stations, garages and auto dealerships planned to walk off the job on Wednesday, widening strikes in Africa’s largest economy.
Unions representing about 1.3 million state workers, who have been on a three-week strike, were expected to announce on Wednesday afternoon whether they will accept a new government wage offer aimed at ending the action that has shut schools and caused chaos at hospitals.
Financial traders have said the state workers’ strike has hurt sentiment but so far has had no major impact on bonds or the rand currency. One prominent economist said it has cost the economy about $150 million a day.
The fresh strike action by workers in the automotive service sector could affect petrol supplies. At many petrol stations around Johannesburg, attendants were on the job but were not in uniform, with several saying they feared intimidation.
The union representing the sector said workers want a 20 percent wage increase — five times the inflation rate of 3.7 percent in July.
Investors also are worried about a one-day strike planned by all the unions in the country’s largest labour federation COSATU, which claims 2 million members and more than 20 union affiliates, in sympathy with the state workers.
The labour action on Thursday could affect mining, manufacturing and other key industries.
A one-day strike is not likely to have too much impact but a prolonged stoppage would further hurt the economy if there is no resolution to the state workers’ strike, COSATU has said.
The government offered state workers, including teachers, nurses, customs officials and office clerks, a pay rise of 7.5 percent and 800 rand a month for housing. The unions are demanding an 8.6 percent rise and 1,000 rand.
The coalition of more than a dozen unions representing state workers was expected to announce a collective decision on whether to accept the new offer on Wednesday afternoon.
Some groups may announce the results of the votes of their membership ahead of that time.
Officials have said the government probably will be forced to make cuts elsewhere and borrow funds to pay for the wage package for the state workers, making it more difficult to meet its goal of cutting a deficit of 6.7 percent of GDP.
The strikes have presented President Jacob Zuma with one of his most difficult policy problems since taking office and strained a long-standing governing alliance with COSATU.