Trade unions flex muscles, Govt adamant, rules out pay hike

• Treasury Secretary says pay hike will warrant VAT increase further

By Yohan Perera

In the wake of strike action by trade unions in the state sector crippling even some services, the government remained adamant yesterday and ruled out the possibility of granting a pay hike for public servants.

Trade unions representing various sectors such as the postal services, development officers and Grama Niladaris were on strike yesterday demanding an upward revision of their salary scales. Some unions including the Railway Department unions staged a protest in front of Fort Railway Station.

Treasury Secretary Mahinda Siriwardana said during a meeting that Value Added Tax (VAT) will have to be increased from 18 per cent to 21 per cent to meet the demands of striking public servants.

The Treasury Secretary made this remark during a meeting at the President’s Office under the patronage of President Wickremesinghe yesterday, as per a statement issued by the President’s media office.

“The government is not prepared to fulfil this demand as it would burden the public,” the statement said.

Commenting on the matter, Joint Convener of Public Service Trade Union Alliance Dammika Munasinghe said unions will not accept the government’s stand. “The government would have given some concessions to the people who bear a burden as a result of VAT increase to 18 per cent. The government would have given some concession to people if it was so concerned about the people. Government has come out with a fairytale,” he said.

He said trade unions representing public servants and workers in the private sector will meet today to decide a course of action to force the government to meet their demand.

National Labour Union President Wasantha Samarasinghe said the government should grant an interim allowance till 2025. “How does the government expect the public servants to have their meals till 2025?” he said.

Meanwhile, the teachers, school principals are to fall sick today while the health sector workers will stage a four-hour work stoppage.