Union leaders have demanded a 12% wage hike for 1.3-million government workers, setting the stage for tough negotiations and making the R700bn-plus public sector wage bill a wild card in the Treasury’s fiscal policy promises.

Other demands include a R2,500 housing allowance increment across the board, a nearly two-fold rise in the danger allowance to R1,000, a performance bonus, bursary schemes for dependants of employees, and permanent employment for education/teacher assistants, community health workers and reservists...

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