Gov't cannot afford PSA demands, but it will settle PSA matter

Prime Minister Kamla Persad-Bissessar told reporters Tuesday government would be happy to pay more money to public employees but the reality is it cannot afford what their union is demanding.

"I think that the majority of our population is aware of our constrained economic circumstances," she said. adding that the government is "committed to the collective bargaining process and this issue will be resolved according to law, there is no other way it can be resolved."

She said she doubts that citizens "are of the view that we have money that we are withholding, or that we are hiding. If we had the money we would give it.

"And so our economic circumstances do not permit for the levels that are being claimed and we will reach common ground, that is human nature, we will negotiate according to the collective bargaining process and we will find common ground. It may take a little longer, but it will happen."

Finance Minister Winston Dookeran said negotiations between the Public Services Association (PSA) and the Chief Personnel Officer (CPO) would continue next Tuesday. And his cabinet colleague, Labour Minister Errol McLeod, emphasised that the Government subscribes to the free collective bargaining process and would treat all with dignity and respect.

Dookeran described 2010 was a "troubled year" with respect to the economy. "We know there are hard choices that must be made in a society that over the years has been denied the right to the prosperity that we believe we have lost," he said.

He added, "The future is going to be based on the hard choices that we make now, for in the foundation for building a resilient economy."