State workers inflation-busting pay rise

Government offers state workers inflation-busting pay rise

South Africa is offering unions representing 1 million state employees inflation-busting pay increases at a time when the country needs to rein in spending to help keep its investment-grade credit rating.

Negotiations over wages for teachers, nurses and other state workers are testing the ability of the new cabinet, led by President Cyril Ramaphosa, to walk a political tightrope with labour unions that supported his rise and keep the country’s finances under control. The National Treasury wants the state to contain the public-sector wage bill, which has crowded out spending in other areas.

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