South African unions threaten to strike over spending cuts

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.