Wage negotiations at the South African Road Passenger Bargaining Council (SARPBAC) are ongoing. The employers are represented by the South African Bus Employers Association (SABEA) and the Commuter Bus Employers Organisation (COBEO), while employees are represented by the following trade unions: The South African Transport and Allied Workers Union (SATAWU), the Transport and Allied Workers Union of South Africa (TAWUSA), National Union of Metalworkers of SA (NUMSA), the Transport and Omnibus Workers Union (TOWU), and Tirisano Transport and Services Workers Union (TASWU).

The unions have expressed their discontent about the employer party’s revised offer, indicating that they would not accept anything less than the inflation rate, which is likely to reach 6.2% this year. While they initially demanded an 11% wage increase, they have agreed that they would settle at a minimum wage increase of 5%, but feel that a wage increase of 6.5% is fair and achievable.

The employers’ organisations in SARPBAC initially offered the unions a 2.5% wage increase, which has now been revised upwards to 4.5%. They have agreed that the maximum wage increase that they could possibly agree to is 5.5%, but they hope that the unions will agree to the 4.5% increase that was offered.

What is the settlement range in this ? Explain.