South African government plays down strike threat 11/06/2010 |
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The government of South Africa has allayed fears of a general strike by state workers during the World Cup.
President Jacob Zuma is determined to see off the threat of industrial action from state employees with the global spotlight on South Africa during the next month.
"There is no need to press the panic button," Randall Howard, special adviser to the Public Service minister, told a news conference.
According to the union, workers including teachers, police officers, nurse and some governmental staff have rejected a 6.2% wage rise and are demanding an above inflation increase of 8.5%..
"If the conciliation efforts fail next Friday, we will have no choice but to strike in the middle of the World Cup," Manie de Clerq, secretary-general of the Public Servants Association told Reuters.
Meanwhile, 14 other unions affiliated to the country’s Congress of South African Trade Unions (COSATU) have also threatened to go on strike.
"We refuse to be blackmailed by the employer because of the World Cup 2010 and we shall fight until our demands are met," Mungwena Maluleke, the negotiator representing COSATU unions, said in a statement.
Labour unions have used the World Cup as a major bargaining chip in a bid to secure higher wages for workers but analysts are worried this could harm the country’s ability to attract investment in the future.
"At the end of the day, you need to set caps because what you spend on public sector wages poses an upside risk to the fiscal deficit," said Peter Attard Montalto, emerging markets analyst at Nomura International.
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