Strike ultimatum in South Africa

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South Africa's government has given striking public sector workers an ultimatum to accept their pay offer.

Trade unions have until 1600 GMT to accept a 7.5% rise or make do with an earlier lower offer of 7.25%.

The union's chief negotiator described the labour movement as "staring down the barrel of a gun", saying this was something it did not take kindly to.

The three-week strike has shut many schools and has left many hospitals reliant on army medical staff.

Workers had originally wanted a 12% increase. The unions have indicated they are still holding out for at least a 9% increase.

Wages losses

The BBC's Peter Biles in Johannesburg says this is the key moment in South Africa's public sector wage dispute.

We are optimistic that the whole matter will be finalised by... tonight Lewis RabkinGovernment spokesman <a class="" href="/1/hi/world/africa/6748133.stm">SA strike voices</a> <a class="" href="/1/hi/world/africa/6749029.stm">Why unions are flexing their muscles</a>

The government has made its final offer to labour, a pay increase of 7.5%, plus an improved housing allowance.

"This is government's final offer. We have put it on the table and we are waiting to see what happens but we are optimistic that the whole matter will be finalised by six o'clock (1600 GMT) tonight," Lewis Rabkin, a spokesman in the department for public services, told AFP news agency.

Union representatives are now in the process of contacting their members in an effort to come up with a response.

Our correspondent says the strike has been hugely disruptive and many workers are beginning to feel the impact caused by the loss of wages.

Some 600 nurses, who provide essential services, and were therefore striking illegally, have been served with dismissal notices.

The unions say they must be reinstated as part of any final settlement.