Government and unions begin wage talks

South Africa’s public sector workers and the government have begun talks on a new wage deal which economists say could increase inflationary pressures if the union’s demands are met, news reports said. The government is offering a five percent increase, but the unions want between nine and 16 percent. The talks between the government and the 12 unions are to set public sector wages for 2000 to 2001. Economists say the government will have to borrow heavily to finance the unions’ demands. But, union officials say their demands are justified after South African government ministers voted themselves a 12 percent increase this year.