Treasury sees debt jump if wage deal implemented

South Africa’s government is opposing a bid by labour unions to compel the state to honor a public-service wage deal, warning the accord would lump the country with R37.8-billion of additional debt. The government in April reneged on an agreement to raise pay for more than 1.2 million servants as part of an effort to stabilize state finances. The Public Servants Association, which represents about 250 000 government workers, took the dispute to the Public Service Coordinating Bargaining Council and the matter is now before the Labour Court.

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