Johannesburg — The Public Servants Association (PSA) announced today that it would strike after the Soccer World Cup for pay hikes. Talks with a conciliator to resolve the dispute ended last night with a certificate being issued by the conciliator which said that the disputes remained unresolved.

The PSA and other public service unions have been demanding an 8,6% general salary increase and R1000 for a monthly housing allowance. The government has been offering a 6,5% increase and a maximum of R620 for housing.

PSA Deputy GM Manie de Clercq said "All Public Service unions have on 9 June 2010 followed the initiative taken by the PSA (Public Servants Association of South Africa) on 20 May 2010, in also declaring a dispute with the State as employer over lack of progress in Public Service wage negotiations".

He said the 210 000-member strong PSA was excluded from proceedings in the bargaining council (PSCBC) after declaring the dispute.

With the declaration of the further disputes, all parties were involved in the subsequent dispute resolution processes which took place under the auspices of the PSCBC.

"The PSCBC consolidated the Union's disputes as they were essentially the same," Mr De Clercq said.

The employer's final offer on 9 June 2010 during the conciliation process remained unchanged at 6,5% across-the-board from 1 July 2010 plus housing allowance of R620 per month.

"The PSA and the other unions therefore did not have any other reasonable option, but to request the conciliator to issue the certificate," Mr De Clercq said.

The unions will meet on Friday July 2 to discuss particulars of the strike including its exact starting date.

Labour analyst Tony Healy was worried about the impact of the wage rises on the government's wage bill if the union and employer settled at a "high wage increase like 8,6%" .

"This could bite the workers next year as the government will struggle to pay them this much or any more next year," Mr Healy said.