Government backs down

THE GOVERNMENThad backed down from its plan to offer public sector unions a lower pay rise, a union leader said on Friday, potentially averting a protracted strike. The deal was reached on Thursday night by acting Public Service and Administration Minister Nathi Mthethwa and labour federation Cosatu, which represents the majority of unions. The government had initially agreed to increase salaries by 7 percent in the first year of a three-year wage deal, but later sought to only pay 6.4 percent, angering unions representing roughly 1.3 million nurses, police and teachers. On June 2, the government said it was owed an “over-adjustment” of 0.6 percent by the unions. It said this was the difference between the actual average consumer price index (CPI) of 5.6 percent for 2014/15 and the projected CPI of 6.2 percent. – Reuters