S Africa faces public sector strike over pay offer

Earlier this week, the government raised its pay offer to civil servants to try to avert a strike that could cripple commerce in the continent's largest economy. It was quickly rejected by the union groups.

"On Tuesday there will be a massive stay-away where all the unions will take part," Manie De Clercq, a spokesman for the Public Servants' Association, whose members downed tools last week, said.

Union officials said they had been in talks with the government and were hopeful a deal could be reached but also said the one-day strike could be followed by a prolonged walkout.

Analysts expect more sparring in days to come but believe a deal tilted in the unions' favour will be reached to head off a repeat of the mass action by civil servants three years ago that battered the economy.

The public service ministry has said in a statement it was prepared to increase salaries by 7 per cent, after previously offering 6.5 per cent.

Union officials said the government had increased its offer of a 630 rand (54) monthly housing allowance by 20 rand. Unions have been demanding a wage increase of 8.6 per cent - double the current rate of inflation - and a housing allowance of 1,000 rand, which would put pressure on the state budget.

The government claims the combined demands amount to a rise of 9 per cent and make it all but impossible to fulfil a commitment to bring the budget deficit down from 6.7 per cent of gross domestic product.

Spending on staff is the largest sector of the budget.