As a number of industrial disputes continue against the government, an economist has today stressed that the interim administration cannot afford to fully restore the 5 percent pay of civil servants.
While the USP's Associate Professor of Economics, Doctor Mahendra Reddy said every possible step should be taken to resolve the disputes, the union members should understand that the interim government just cannot meet their demands at this stage.
Doctor Reddy also said there is no need to backdate the pay restoration when the payment is made as that will also have a huge impact on public finances.
The agreement drawn up between the Public Service Commission and the Public Employees Union and the Viti Taukei Workers Union last night, will be presented at a Cabinet meeting at 11 o'clock this morning for Cabinet's endorsement.
Public Service Permanent Secretary, Taina Tagicakibau has confirmed this, adding that the meeting between the relevant parties last night, went well.
Tagicakibau said the agreement basically entails the Unions' acceptance on what the interim government is offering.
Tagicakibau said the Fijian Teachers Association has not joined the PEU and the Viti Taukei Union in the acceptance of the 1% pay restoration but adds that she hopes to hear from them this morning on whether they will be agreeing to the offer by the interim administration.
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Interim Govt cannot afford full 5% pay restoration-Economist
