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S Africa unions call off strike | |
(about 2 hours later) | |
South Africa's main trade unions have ended their four-week strike, which has closed most of the country's schools and hospitals. | |
The Congress of South African Trade Unions (Cosatu) has decided to accept the government's offer of a 7.5% pay rise - they had demanded 9%. | |
The government had originally offered 6%, while the unions had wanted 12%. | |
Correspondents say it has been the biggest strike since the end of apartheid in 1994. | |
Before the decision was announced, one union official told the Business Day newspaper that teachers wanted to end the strike, as school holidays had started. | |
In pictures: SA strike Strike voices Unions flex their muscles | In pictures: SA strike Strike voices Unions flex their muscles |
On Monday, two independent unions pulled out of the strike, accusing Cosatu of being "greedy and opportunistic", saying the 7.5% offer was "fantastic". | On Monday, two independent unions pulled out of the strike, accusing Cosatu of being "greedy and opportunistic", saying the 7.5% offer was "fantastic". |
The labour movement accuses the government of promoting big business at the expenses of poor South Africans. | The labour movement accuses the government of promoting big business at the expenses of poor South Africans. |
BBC correspondent in Johannesburg Peter Biles says the strike has been hugely disruptive and many workers are beginning to feel the impact caused by the loss of wages. | BBC correspondent in Johannesburg Peter Biles says the strike has been hugely disruptive and many workers are beginning to feel the impact caused by the loss of wages. |
Economists estimate that the cost to South Africa's economy could be as much as 3bn rand ($418m). | Economists estimate that the cost to South Africa's economy could be as much as 3bn rand ($418m). |
Inflation fears and resulting interest rate hikes have prompted the central bank to warn against large wage increases. | Inflation fears and resulting interest rate hikes have prompted the central bank to warn against large wage increases. |