S African public sector workers protest over pay

CAPE TOWN, May 25 (Reuters) Thousands of South African public sector workers staged peaceful protests over pay today as trade union leaders threatened to bring the country to a standstill if their demands were not met.

Unions have threatened indefinite strike action by up to one million workers if the government still refuses to raise salaries by 12 per cent by May 31, raising the prospect that Africa's biggest economy could suffer from mass action.

Police in the legislative capital Cape Town estimated 12,000 public service workers gathered outside parliament.

''This is notice of very serious and militant actions by the workers of our country unless government moves... there will be problems,'' said Willie Madisha, president of powerful trade union federation COSATU.

''We are not baboons, we cannot be given peanuts.'' At least 5,000 workers protested outside the country's main government building in the South African capital Pretoria.

Others gathered in KwaZulu Natal province to pressure the government, which has offered a six per cent wage rise.

COSATU has the numbers to paralyse major cities. Its eight affiliated public sector unions make up about 60 per cent of public service employees including doctors, police and teachers.

Possible mass strikes worry central bank governor Tito Mboweni.

This week he said wage increases above the top end of the bank's 3-6 per cent inflation target could spark further price increases in the economy and force interest rates higher.

''This country is on the verge of being at a standstill and that is what we are going to do,'' said Mike Makwayiba, deputy president of the National Education, Health and Allied Workers Union, at the Cape Town rally.

Labour leaders have accused President Thabo Mbeki of promoting business interests and not doing enough to help the country's poor, the vast majority of which still live in grim black townships.

COSATU, which has about 1.8 million members, is urging Mbeki's ruling African National Congress (ANC) to return to the more socialist approach it took during its long struggle against apartheid.

''6 per cent is like toilet paper. To hell with it,'' said one of the protest banners in Cape Town.

REUTERS JK KP2032