South Africa’s largest labour union federation is threatening to go on strike if the government backs proposed austerity measures, which could include reneging on a public sector wage agreement. National Treasury will present President Cyril Ramaphosa with a cost-saving plan in coming weeks to help tackle the country’s revenue shortfall and budget deficit. Options include increasing taxes and slashing the number of government departments and state-owned enterprises. The alternative is issuing more debt — a prospect that’s hit South African bonds in recent days.
