TABJ Sep 2 - South African strikers rejected a new wage offer from the government and plan to march in protest on Thursday 2 September.

The majority of unions rejected the new wage offer, despite being on strike for three weeks.

The strike is estimated to be costing about $150 million a day. The government offered strikers a 7.5 per cent pay increase and 800 rand, or $110 a month for housing.

"There are behind the scenes political discussions going on. I cannot give more details but leaders will continue to work for a solution," COSATU, the largest labor federation, Secretary General Zwelinzima Vavi told Reuters.

Though government negotiators say they cannot increase the wage offer, there is a planned bargaining session today, 2 September.