South Africa's government gave unions an ultimatum to accept a revised pay offer on Wednesday or make do with a previous lower offer in its final push to end a costly three-week civil service strike. But the largest public service union, which represents the country's teachers, said the offer was still not enough.
The government's settlement salary package includes a 7.5 percent wage increase and a higher housing allowance of 500 rand ($70) from 456 rand, union officials said. That was still below the unions' revised demand of a 9 percent pay raise in a dispute that has highlighted the divide between the ruling African National Congress (ANC) and its labour allies.
The government says a drastic wage increase would crowd out other spending while the central bank fears inflation-beating pay rises could further fuel price pressures and prompt higher interest rates in Africa's biggest economy.
There were no signs of a breakthrough as the powerful COSATU labour federation was deciding on a response to the government's deadline for an agreement by 1600 GMT.
The South African Democratic Teachers Union (Sadtu), the biggest public service union, said it rejects the latest offer. "If the employer does not improve the offer, we will have further disruption of schools," SAPA news agency quoted Sadtu deputy general secretary Don Pasquallie as saying.
Sadtu supporters were "forcefully" removed from a Durban school on Wednesday after the principal was apparently threatened, SAPA news agency quoted Police Superintendent Vincent Mdunge as saying. COSATU earlier condemned what is said was the "shooting and arrest" of Sadtu members by private security combatants and police at the school.
"We believe the police should be protecting community members who are always robbed, raped and murdered by criminals not to shoot at unarmed protesters," it said in a statement. Hundreds of thousands of workers have taken part in the strike, which began on June 1. Union officials accused the government of using strong-arm tactics in its latest offer.
"We are not sure whether it is talks that we are going for anymore because this is now just (the government's) take it or leave it situation," Mannie de Clercq, general secretary of the Public Servants Association of South Africa, told Reuters. Analysts say the strike has become a demonstration of workers' power ahead of a leadership congress this year that may see the ANC name a successor to Mbeki.
Mbeki is due to step down as president in 2009, and there is speculation the ANC may steer away from his market-friendly policies, which COSATU and other critics say have failed to dent economic disparities that linger from the apartheid era.
The strike has caused chaos in hospitals, schools and public offices and some South Africans say loved ones have died as a result of problems in hospitals and other crucial facilities.
The government initially proposed a 6 percent rise which it later upped to 7.5 percent, while the unions' opening demand was for a 12 percent rise. They later lowered it to 9 percent. Gertrude Mmabatho, a striking messenger for the department of social development, said she has been forced to sell oranges to make a living since the mass action began. But she remains defiant. "We can't struggle like this for a long time and not get anything out of it," she said.
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