Johannesburg — BEHIND-the-scenes negotiations yesterday failed to end the public service strike as trade unions conferred with each other in an effort to work on a unified position against the government.

The state again said it cannot afford a revised offer after unions on Wednesday rejected an offer of a 7,5% wage increase and an R800 a month housing allowance.

The disruption to public services is set to continue until at least Monday, when the next meeting between the government and the unions is scheduled.

Dumisani Nkwamba, spokesman for Public Service Minister Richard Baloyi, said yesterday the government was now waiting for the unions' formal response. "As government we expect them to come up with a positive response and accept this settlement offer so that government can move on and focus on service delivery," he said.

While last month the government threatened to implement its offer of a R7% salary hike and R700 housing allowance unilaterally, Mr Nkwamba said there would not be a unilateral implementation of any position, indicating a climbdown.

"The only way to resolve this thing is through engagement by both sides," he said.

Yesterday a meeting between the Congress of the South African Trade Unions (Cosatu) and the Independent Labour Caucus (ILC) was adjourned until later this afternoon when more input from rank and file members would have been obtained.

ILC chairman Chris Klopper said some of the unions had found it extremely difficult to "sell" the government's offer to their constituencies, hence the need for more consultations.

The offer went beyond the widely reported 7,5% wage increase and R800 housing allowance offer to include proposals on medical aid scheme payments and a minimum service level agreement. Unions have been demanding 8,6% and a R1000 housing allowance.

The strike, now in its third week, had also raised questions over how efficient the negotiations between the government and unions had been.

Analysts placed the blame on the government's readiness to make concessions. This week's offer was the fifth "final" offer.

"The state has placed itself into a very difficult position by so vociferously saying its final offer was this and then saying a higher one was that and so forth," labour analyst Tony Healy said.

Negotiations started in May with an offer from the government of 5,3% and because unions were now on their fifth "last offer" members believed the government could still be nudged forward, he said.

Prof Steven Friedman, of the Centre for the Study of Democracy at the University of Johannesburg, said had it been a private sector strike, it would most likely have ended this week, but Cosatu members, many of whom voted for President Jacob Zuma , expected more from the government.

He said Cosatu needed to realise that it would get more clout by being strong at the workplace than by backing a politician.

Last night national and provincial leaders of the country's biggest teachers union, the South African Democratic Teachers Union , were due to meet for more consultations. "We are going to have another special meeting in Durban," said media officer Nomusa Cembi.

Sizwe Pamla, spokesman for the biggest public sector health union, the National Education, Health and Allied Workers Union, said its rejection of the latest offer was "preliminary" and the union was consulting members, indicating a potential about-turn.

The government yesterday said the state could only agree to a wage settlement it can afford. "Simply put, there is no money available," it said.

Government spokesman Themba Maseko said Finance Minister Pravin Gordhan would shortly make a public statement on the effect of the revised offer on the economy and the fiscus.

Once a settlement was agreed, it would not be "business as usual" for government departments. Directors-general would be instructed to cut costs. Possible measures included a freeze on the filling of new posts, less travel, and trimming other expenditure.

Meanwhile, the strike in the car components sector entered its second day yesterday, resulting in stalled production at Volkswagen SA's Uitenhage plant.

BMW SA would continue to reduce the number of shifts at its Rosslyn plant. Nissan SA said it had enough car parts and other stock to keep production going for the next few days and would review the situation at the appropriate time. General Motors SA's production facilities have not been affected.

The retail fuel strike continued, but some petrol stations were operational, albeit with less staff.

With Sapa, Bekezela Phakathi, Beth Shirley