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NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. Big S.Africa state workers' union rejects pay offer Tweet This Share on LinkedIn Share on Facebook Related News UPDATE 5-Big S.Africa state workers' union rejects pay offer 11:22am EDT UPDATE 4-Striking S.African workers vote on new wage offer Tue, Aug 31 2010 Striking S.African workers to vote on new wage offer Tue, Aug 31 2010 S.Africa increases wage offer to strikers: source Mon, Aug 30 2010 UPDATE 7-S.Africa increases wage offer to strikers-source Mon, Aug 30 2010 Analysis & Opinion ANALYSIS-Mining rights issue tarnishes S.Africa’s image African agricultural finance under the spotlight Related Topics World » Striking South African public service workers march through the streets of Cape Town, August 26, 2010. Credit: Reuters/Mike Hutchings By Peroshni Govender and Jon Herskovitz JOHANNESBURG | Wed Sep 1, 2010 11:32am EDT JOHANNESBURG (Reuters) - One of South Africa's largest state workers' unions said Wednesday it had rejected a new pay offer from the government aimed at ending a three-week strike by about 1.3 million workers in Africa's largest economy. NEHAWU, which has more than 200,000 members in healthcare and other services, made the announcement just before a meeting of a coalition of more than a dozen state workers' unions, casting a shadow over the gathering at which they are expected to give their decision on the deal. "NEHAWU has rejected the offer," Sizwe Pamla, a NEHAWU spokesman, told Reuters. The country's biggest union for state workers, the teachers' group SADTU, has also indicated its members have rejected the offer. The two unions, totaling about half a million members, are in the country's largest federation, COSATU, and are seen as having a major influence on the way other COSATU unions vote. Just before the NEHAWU announcement, COSATU said it was suspending a one-day sympathy strike this week by all its member unions that could have shut mines, to give state workers more time to consider the new wage offer. That removes some of the pressure on President Jacob Zuma's ruling African National Congress to reach a deal fast or risk a massive labor action that could damage the economy. The government may be hard pressed to improve its offer significantly, as it has said its latest offer is well above inflation -- 3.7 percent in July -- and it cannot afford what it has already put on the table. This could leave senior union officials with a dilemma -- whether to try to persuade members to accept the offer or to press ahead with a long strike that leaves strikers without pay in pursuit of a deal that further strains state finances. COSATU has more than 20 affiliated unions and claims nearly 2 million members. The government offered state workers, including teachers, nurses, customs officials and office clerks, a pay rise of 7.5 percent and 800 rand ($108.5) a month for housing. The unions are demanding an 8.6 percent rise and 1,000 rand a month. The COSATU leadership, which said its governing alliance with the ANC was on the verge of rupture, appears to have taken a more conciliatory line since Zuma heeded its call for high-level intervention and ordered ministers to negotiate a rapid end to the strike, analysts said. "They are turning the taps off a little, but are doing it slowly," said Sakhela Buhlungu, an expert on organized labor at the University of Johannesburg. COSATU has threatened a prolonged strike by all its members, including miners and factory workers, which would cripple the economy, if there were no resolution of the state workers' strike. South Africa is the world's fourth largest gold producer and largest platinum producer. The country's biggest firms, such as Anglo Platinum, Impala Platinum and Harmony Gold Mining, have stockpiles of ore and would not be seriously affected by a one-day work stoppage. In yet another dispute in the mid-year strike season, the National Union of Mineworkers said that more than 8,000 workers at Northam Platinum would go on strike Monday in a dispute over a pay rise. Officials have said the government will probably be forced to make cuts elsewhere and borrow funds to pay for the state workers' eventual pay rise, making it more difficult to meet its goal of cutting a deficit of 6.7 percent of GDP. Rank-and-file union members, feeling the pinch from lost wages as a result of the government's policy of "no work, no pay" for strikers, may want to end the dispute, analysts said. Others are willing to overlook the damage to their finances, feeling they have risked so much already that waiting for a better offer is worth a few more days off the job. (Editing by Marius Bosch and Jon Boyle; editing by Tim Pearce) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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