Gov't urges unions to look at bigger picture

PORT OF SPAIN, Trinidad (CMC):

The coalition People's Partnership government, faced with the prospect of having to deal with a nationwide strike in the coming days, is urging trade unions to focus on the broad compensation packages to workers rather than only on monetary gains.

Prime Minister Kamla Persad-Bissessar is due to meet with the disgruntled trade union leaders tomorrow even as the trade union movement warned that it was still going ahead and planning the national strike to protest the five per cent cap the government has placed on public-sector wages.

Even though she has sought to indicate in recent days that her administration has not placed any such cap on wage negotiations, a two-page statement issued by the government said that, "workers and their representatives have been focussing narrowly on the straight percentage increase, while ignoring efforts at developing broad compensation packages .

Compensation packages

The statement, issued by the Government Information Services Limited and published in the local media yesterday, said the compensation packages include, enhanced health and medical benefits, specialised allowances, housing, lump sum payments, all geared towards improved quality of life for workers in the country .

The Persad-Bissessar government said while it saw itself as an equal partner with the labour movement in achieving economic stability and national security, it needed to exercise sound judgement in addressing matters concerning wage negotiations.

The statement said although the country's debt position was within manageable limits, at about TT$9 billion (US$1.5 billion), "we, however, need to guard against tipping the balance by taking imprudent risks".

According to the statement, the Persad-Bissessar government is, "well aware of the situation facing a number of recently robust economies such as Ireland and Portugal, which now find themselves in serious financial crisis. The collapse of the economy in Greece has forced a European IMF bailout, which includes the private sector, in the wake of fear of contagion across all of Europe. We must do everything we can to avoid a situation where we have to revert to the IMF".

The statement noted that almost every Caribbean Community country had a major debt challenge, adding that in these countries, too, investment is weak and growth prospects elusive .

Home-grown solutions

The statement said the government was seeking home-grown solutions to the problems and challenges facing the local economy, "and none of the approaches being taken in our case is dictated by any external financial institution."

The statement noted that for the period 2008 to 2010, there have been increases ranging between 10 and 20 per cent.

The statement said the government estimated it would need a total package of TT$2.2 billion (US$366 million) to settle wages and salary negotiations in the civil and statutory services, teaching service, protective services, daily- rated workers and in the defence force for the period 2008 to 2010.