Bloomberg reports that a document it has seen indicates that the government has offered increases of 7% for the most-junior employees for the year up to end-March and 6% for senior staff, including managers.  

These inflation-busting pay increases offered to unions representing 1-million state employees such as teachers and nurses come at a time when the country needs to rein in spending to help keep its investment-grade credit rating.  Consumer prices rose 3.8% in March.  The unions had demanded a 12% increase — more than double the Reserve Bank’s forecast of 4.9% for average inflation this year — and apparently lowered the request to 10% on 4 May.  "We have received an offer that is worth the consideration of our members," Sizwe Pamla, union federation Cosatu’s spokesperson commented.  "We will allow our workers to engage comprehensively and will implement whatever mandate they give us.  We can’t rule out or promise anything, it’s in the workers’ hands."  The Public Service Association (PSA), which has about 200,000 members and is not part of Cosatu, was not supporting the offer, deputy GM Tahir Maepa said, without giving details.

• Read this report by Sam Mkokeli in full at BusinessLive

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