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S&P Sees Govt Compromising on Public Sector Wage Talks

SOUTH AFRICA
  • S&P SEES S.AFRICAN GOVT COMPROMISING IN PUBLIC-SECTOR PAY TALKS
  • Wage talks are still very much deadlocked with govt refusing to budge from its 1.5% offer so far, which is worlds apart from union demands in the range of 9-12%, down from 15%
  • With inflation at 4.4%, govt has a bit of wiggle room to the upside to still stick with its promises for 0% real increase, but has been very clear that the space in the budget does not exist
  • Unions have yet to embark on a full nationwide strike, which becomes increasingly more likely the longer govt sticks to its 1.5% offer, that's where the govt's resolve will truly be tested
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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