South African govt, public sector unions settle wage deal impasse

CAPE TOWN (Reuters) - South Africa's government has backed down from its plan to offer public sector unions a lower pay offer, a union leader said on Friday, potentially averting a protracted strike in Africa's most developed economy. The government had initially agreed to increase salaries by 7 percent in the first year of a three-year wage deal, but later sought to only pay 6.4 percent, angering unions representing around 1.3 million nurses, police and teachers.