SAfrica gives unions deadline to accept wage deal

JOHANNESBURG, June 20 (Reuters) South Africa's government gave public sector unions until 2130 hrs IST today to accept a revised pay offer or make do with a lower previous proposal in its final push to end a three-week civil service strike.

The settlement salary package includes a 7.5 per cent wage increase and an increased housing allowance of 500 rand from 456 rand, the South African Press Association reported.

The government initially proposed a 6 percent rise which it later upped to 7.25 per cent, while the unions' opening demand was for a 12 per cent rise. They later lowered the figure to 10 per cent.

The country's civil servants have been on strike since June 1 and union officials voiced disappointment with today's offer.

''We have reached the end of negotiations and I cannot see any movement beyond this evening,'' said Chris Klopper of the Suid-Afrikaanse Onderwysers Unie when talks ended after 2 am (0530 hrs IST) today.

Chief negotiator for unions Tahir Mohammed said: ''It's over, it's finished... it is a sad day for the public service''.

''Labour is definitely negotiating starring at the barrel of a gun, and that is something we do not take kindly to,'' he said.

Union negotiators would meet with their leaders later today to decide how to react to the government's proposal.

The SA Democratic Teachers Union had already indicated that it would reject the offer.

The government's chief negotiator Kenny Govendor and Public Service and Administration Minister Geraldine Fraser-Moleketi's spokesman Lewis Rabkin declined to make comments when they left wage talks in the early hours of this morning.

Negotiations are due to resume at 2130 hrs IST.

REUTERS RJ DS1225