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S Africa unions 'to end strike' S Africa unions call off strike
(about 2 hours later)
South Africa's main unions are set to suspend their four-week strike, according to local media reports. 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) is set to officially announce its response to the latest government pay offer shortly. 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%.
Most of the country's schools and hospitals have been closed during the strike by public workers. The government had originally offered 6%, while the unions had wanted 12%.
The government has offered a 7.5% pay rise, while the unions have been insisting on 9%. Correspondents say it has been the biggest strike since the end of apartheid in 1994.
Cosatu head Willie Madisha said a lot of progress had been made during the negotiations. 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.
"The majority of the unions are expected to suspend the strike because the lion's share has been carried by the teachers. School holidays have started," one union official told the Business Day newspaper.
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".
Workers had originally wanted a 12% increase.
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.