Union wage demands puts South Africa’s spending cuts at risk – Nene

South Africa will struggle to stick to a promise to cut spending if the government fails to agree inflation-linked wage increase with civil service trade unions, Finance Minister Nhlanhla Nene said on Tuesday. Plans to reduce government spending in Africa’s most industrialised economy helped it avoid a damaging credit rating downgrade by Moody’s in March, but the promised cuts provoked criticism from unions, civil society and opposition parties.