Zuma intervenes in govt strike

| Tuesday August 31, 2010 00:00

 

Zuma has instructed ministers to go back to the negotiation table and resolve the wage stand-off with unions.Zizi Kodwa, the president's spokeperson, said the president had instructed  ministers including Public Service and Administration Minister Richard Baloyi to start wage negotiations with 'immediate effect'.

Kodwa said Zuma could not allow the public sector strike go on. Zuma has been under growing political pressure because of the strike by workers including teachers, nurses and clerks. His spokesperson said the president was particularly concerned about the impact on health and education.

'The president's view is that the strike must end as soon as possible, in the next couple of days,' Kodwa said, adding that Zuma had spoken to government ministers at the weekend to tell them to resume talks. 'He appealed to both sides to put the interests of the country first. That would mean give and take from both sides in negotiations,' Kodwa said. He did not give details of concessions Zuma expected the government to make.

South Africa's biggest strike since 2007 in terms of lost man days has left bonds, stocks and the rand largely unaffected, but market players said the strike would cap gains by the rand and could have a bigger impact if it drags on.

Unions, which are demanding an 8.6% wage increase and R1,000 housing allowance, insist that the government should revise its offer.

The government is offering a 7% wage increase and a R700 housing allowance. 

Union federation Cosatu welcomed Zuma's comments. 'The federation hopes that an improved offer will now be tabled and that the strike can be settled as quickly as possible, through an agreement that is acceptable to the workers,' it said in a statement.

The strike has deepened a rift within the ruling alliance between Zuma's African National Congress and Cosatu, which helped bring him to power but is disappointed he did not shift policies to the left.

Cosatu has threatened to widen the strike later this week to all of its member unions, which it says represent about 2 million workers.

Analysts expect Zuma and the ANC government, which has typically given in to labour's demands, to reach a deal soon, tilted in favour of the unions, and worry later about the damage to state spending. Any agreement to end the dispute is likely to swell state spending by about 1% to 2%, forcing the government to find new funds just as it tries to bring down a deficit totalling 6.7% of gross domestic product.

Unions have also linked the labour action to Zuma's political future. The next election is not until 2014, but the ruling alliance will decide long before that who its candidate would be.

Cosatu secretary general Zwelinzima Vavi threatened to withdraw support for the ANC at the weekend, but the union federation struck a more conciliatory tone on Monday - condemning personal attacks on Zuma. (FIN24)