South Africa

SOUTH AFRICA'S crippling three-week public-sector strike is over—for now. The unions, representing 1.3m public-sector workers, announced last night that they had “suspended” their action pending further negotiations with the government. They are threatening a new nation-wide stoppage if the government does not meet their demand for an 8.6% pay rise, more than double the inflation rate, plus a 1,000 rand housing allowance within the next three weeks.

Under pressure from schools closing, ambulances being turned away from hospitals and intensive care patients (including new-born babies) the government last week raised its supposed “final” offer from 7% to 7.5% plus a housing allowance of 800 rand. Although union leaders initially welcomed the revised offer, their rank-and-file, incensed by the corruption and luxurious life-styles of the ruling elite, turned it down. However, with their wage packets being docked for every day’s work lost and no strike pay, most are secretly relieved to be able to get back to work.

Despite a series of big wage increase in recent years, South Africa’s public servants—particularly teachers, doctors and nurses—continue to be relatively poorly paid. Many have moved into the private sector or abroad in search of better salaries, leaving the public sector with dire staffing shortages. But the government says it simply cannot afford to pay them any more at present. Its wage bill has already jumped by more than a half since 2006, accounting last year for 47% of the total state budget. Every extra rand spent on its employees meant less could be spent on other priorities, the government says, including creating jobs.

With 36% out of work, South Africa has one of the highest unemployment rates in the world. After moving into recession last year—the country’s first in 17 years—the economy has now begun to pick up. But the recovery remains fragile and the ranks of the jobless continue to grow. Although on a GDP-per-head basis, South Africa is one of the richest countries on the continent, but it is also one of the most unequal: almost a third of its 49m inhabitants still live on the equivalent of less than $2 a day.

The government is doubtless hoping that, once back at work, public-sector workers will be reluctant to down tools again for barely one extra percentage point in pay. But the dispute has gone beyond a simply question of money; it is now also about power. The government has already caved in once. It could be forced to do so again.