South Africa strike threatens economy by Magdalena Rosova

In South Africa more than one million civil servants - police, nurses and teachers included – went on strike Wednesday to fight for higher wages. But the government still insists that better wages are not affordable for the country. The striker are warning that they would prolong the action and bring the government to a halt. But the strike is not expected to have a serious impact on the economy. However, prolonged strike may have an effect on commerce at home and trade abroad. Strikers are organized in unions which creates labor coalition. National spokesman for POPCRU police and prison guards' union, Norman Mampane, said they had nothing to lose but the chains that ! bound them. But the government of South Africa really can't afford to increase the incomes. Whatever deal is reached, it will increase state spending and restrain the government's efforts to bring its deficit down from 6.7 percent of gross domestic product. Therefore Public Services Minister Richard Baloyi told at news conference that the government had clearly demonstrated that its capacity to afford was exhausted. The deal with the strikers will cost the government about $690 million, which is more than was planned and therefore the money will have to be made somewhere else. Strikers in red T-shirts filled the streets holding cards with their demands above their heads. The strikes broke out in protest dances at schools, hospitals and government offices all through the whole country. It is expected that the deal with strikers will be reached in few days at the earliest.

related story (sgx18011): http://www.csmonitor.com/World/Africa/Africa-Monitor/2010/08...

by Magdalena Rosova for Cantell TV (http://cantell.tv)

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