July 27 (Bloomberg) -- Thousands of South African municipal workers went on strike to demand higher wages, dumping trash on Johannesburg streets and disrupting bus, street sweeping and vehicle licensing services across Africa’s largest economy.

“The strike has been called indefinitely” until workers’ demands are met, Mthandeki Nhlapo, general secretary of the South African Municipal Workers Union, which represents 125,000 workers, said in a phone interview today.

The labor union wants a 15 percent pay increase, a monthly minimum wage of 5,000 rand ($646) and a 70 percent increase in housing allowances. The South African Local Government Association, which represents municipalities, said in June it is willing to boost pay by 11.5 percent. The labor union and the Independent Municipal and Allied Trade Union, which has 60,000 members, rejected the proposal.

“It is not our wish to go on strike, but the employer has forced us to do so,” Nhlapo said.

Thousands of council workers marched in Johannesburg’s city center, emptying garbage cans in the streets and disrupting informal traders from selling goods on sidewalks, the South African Press Association said. Police fired rubber bullets, injuring three protesters in Polokwane, capital of the northern Limpopo province, Sapa said. Marches also took place in Pretoria, Bloemfontein, Durban and Cape Town.

Call for Order

“We firmly believe that the municipal strike, which has resulted in the trashing of streets by striking workers, can only be resolved through negotiations,” the ruling African National Congress said in an e-mailed statement. “No form of disorder or violence can resolve any wage dispute.”

South African labor unions are demanding higher wages to compensate for inflation, which reached a record 13.7 percent in August, and slowed to 8 percent in May. About 40,000 workers in the chemical, energy and paper industries have been on strike since July 19, demanding pay increases of as much as 13.6 percent, while employers are offering 9 percent.

A new wage proposal was concluded between municipal labor unions and the employers’ group on July 25, which will be considered by union members before a meeting on July 30, Mzwanele Yawa, executive director of labor relations at the local government association, said in a phone interview from Pretoria today. He declined to give details of the proposal.

“It is our sincere hope” that the proposal will be accepted by all parties, Yawa said.

Rail Strike Suspended

Services affected include bus transport, street sweeping, issuing of vehicle licenses and payment of municipal rates and taxes. Refuse removal is listed as an essential service, and will only be disrupted if the strike extends for more than 14 days, Nhlapo said.

About 10,000 workers at Metrorail, the country’s passenger rail service, suspended a strike that was called for today after the government raised its pay increase offer to 8 percent from 7 percent. Workers had demanded wages be raised 12.5 percent.

To contact the reporters on this story: Nasreen Seria in Johannesburg at nseria@bloomberg.net

Last Updated: July 27, 2009 09:50 EDT