South African unions call off electricity strike

South African unions have called off a planned strike at the power utility Eskom after receiving a higher wage offer, ending concern about power supplies during the football World Cup.

Widespread power cuts could also have dented manufacturing and mining companies' output in Africa's biggest economy. Eskom had said it would be illegal to strike at the utility because it is an essential service and warned it would punish strikers who had planned to go on strike this week.

The company's new offer came in last-ditch talks at the weekend, with Eskom raising its offer to 9 per cent from 8.5 per cent, nearly double South Africa's inflation rate of 4.6 percent, and saying it would pay a 1,500 rand (£128) per month housing allowance, up 50 per cent on its previous offer.