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South Africa Rejects Civil Servant Demands For 10% Pay Increases

  • State wage bill accounts for almost one third of expenditure
  • Unions to present offer to workers, talks to resume late May

South Africa’s government rejected demands from labor unions representing 1.3 million state workers for 10% raises and increased housing allowances and other stipends, instead proposing that it extend the payment of an additional 1,000 rand ($63) monthly cash stipend by a further year.

Acceding to the unions’ proposals will cost 146 billion rand over three years, which isn’t affordable, the government said in a submission to the public sector bargaining council, which was seen by Bloomberg. It also rejected demands for contract workers to be permanently employed.