On Thursday, the South African increased its offer to state workers to a monthly housing allowance of 700 rand, but left the wage offer at a 7% increase. The unions have been asking for a 8.6% pay increase and a housing allowance of 1000 rand. The offer has delayed a strike from the unions for another week, but union leaders are not saying that it will not happen. The government says that upping the offer is too stressful on the budget. Unions say that they will respond to the offer in a week.
See "SAfrica state worker unions put strike on hold", Peroshni Govender, Reuters, August 12, 2010