About 200,000 workers affiliated to the South African Municipal Workers Union (SAMWU) had threatened to walk off the job from Friday, just four days before nationwide local elections.
“The strike has been suspended. We will issue a statement later outlining our reasons,” SAMWU secretary general Mthandeki Nhlapo told Reuters.
Economists fear the increases being sought — about four times the March rate of inflation — will encourage similar demands in other sectors, putting pressure on the state’s limited resources and raising prices in the wider economy.
Finance Minister Pravin Gordhan on Monday said the state could not afford an inflated wage bill as tax revenues have not fully recovered after a recession two years ago.
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