The SA Federation of Trade Unions says its members will not sign the Public Service Salary Agreement in its current form.
In a statement, Saftu said the agreement represents the continuing and protracting assault on workers' wages; condition of employment and overall living standards.
The unions listed six key reasons why it rejected the offer, the key being the 7% increase which Saftu says is not acceptable to workers.
It says the offer doesn't demonstrate the government's own radical stance on economic transformation - considering the 15% VAT.
Other Cosatu affiliated unions have agreed to sign the government offer.
"We also wish to bring to the attention of the working class that the government is not only seeking to resolve the crisis of capitalism and the crisis of the ANC factional battles have created for society on the back of workers only in the PSCBC, but also in the other state-owned enterprises," said Saftu's Patrick Craven.
"Eskom has made a final offer of 0% to its workers. PRASA and other state-owned enterprises are looking at ways to throw thousands of workers in the streets to resolve crisis not created by workers," he said.
