According to Permanent Secretary Gopaul, the GPSU had rejected the Government's suggestion that they use the term 'salaries and other emoluments' which was intended to give some scope without listing the 16 allowances the union wanted to put to the tribunal. Based upon earlier exchanges, he said it became apparent that an agreement could not be reached and it was decided that the parties proceed with the issue of wages/salary increases, only, given the time constraints. Other issues were to be reserved for subsequent discussion.

Permanent Secretary Gopaul explained that negotiations held over the last two years, GPSU and PSM concentrated their presentations on the issue of wages and salaries with little discussion on seeking to justify allowances. On the other hand, now that the negotiations have failed, the GPSU is adamant that allowances be included as a separate issue. While rejecting that position the Government has not closed all doors to the discussions but would explore all the issues before determining what to go for.

According to Permanent Secretary Gopaul, since President Bharrat Jagdeo was Finance Minister, it has always been the position that the Government would never offer increases less than the rate of inflation. Further, he stated that the 3% increase offered can be considered as an adequate amount given the state of the economy and what is available in financial terms noting that several issues would have to be examined including the revenue being generated.

While the parties have been unable to reach an agreement on the level of inflation, Permanent Secretary Gopaul said the Government has an obligation to the public servants to make a payout and wants to do so before the end of the year. Questioned on whether the contemplated payout would be ‘liveable’, he said the increases have to be measured in many contexts adding that even in the rich countries no single minimum wage earner can take care of all his expenses.

Repeating the Government’s history as a champion of the working-class, Permanent Secretary Gopaul was confident that there has been no change in that historical position, stating "I take the point that much more can be done and that much more can be achieved for the workers if Guyanese together were to put their shoulders to the wheel and work collectively to bring improvement in the country - all round economic improvement so that all can benefit."

President of the Guyana Public Service Union (GPSU), Mr Patrick Yarde is confident that the wages dispute will be resolved despite the Government's position that it cannot offer more than a 3% increase. In an interview with the Daily Chronicle yesterday he said that the Union will resist that offer "with every means possible".

GPSU and the Government, deadlocked in conciliation, have been unable to reach agreement on the terms of reference for the arbitration tribunal.

GPSU and the Public Service Ministry commenced negotiations for wages and salaries for public servants on April 4 last. And Permanent Secretary of the PSM, N.K Gopaul, claimed the Government has done everything within its powers to promote industrial relations to the fullest extent and will have no other choice but to examine whatever is possible in terms of a salary increase and make that available to public servants.