He yesterday told reporters at his weekly post-cabinet news conference that Government's decision to make a payout has been taken with the fullest awareness of the steps that the Union would likely take in response.

The Government decided to make a five-percent payout to public servants for this year, which it said was done in the best interest of workers. It was also to ensure that public servants are paid before Christmas.

Contract employees will receive four percent while the Joint Services and Public Servants will receive five percent on their wages and salaries retroactive to January 1, this year.

The Guyana Public Service Union (GPSU) had originally demanded an increase in the minimum wage from $20,045 to $32,832 per month, a percentage increase of about 64 percent over the 2001 figure.

It had said that this increase was necessary for workers to improve their living standards.

According to Dr Luncheon, the Administration is prepared to defend its actions whether in the offices of the Public Service, within Guyana itself or regionally/internationally.

He stated, "We have always stressed our willingness, as the Administration, to meet and discuss with the Unions these differences, in this case specifically the Public Service Union."

He said the Administration had no other choice but to provide wage and salary increases for this year without the agreement of the Union and added that the Government's main responsibility is its employees, notwithstanding that the Union also has certain responsibilities.

Dr Luncheon was quite certain that the Union will continue to make Government interventions the occasion for further intensification of this dispute with the Administration which he said are long standing and that many of them predated the current People's Progressive Party Civic (PPP/C) Administration. He said that to some extent, it reflects the need for the re-examination of the collective bargaining agreement.

Noting that the role of Public Servants in the delivery of public goods and services to the people of Guyana also needs to be looked at, Dr Luncheon said that the Government is aware of the Union's tendencies to approach Public Servants for them to take overt industrial action but added that this has not been forthcoming in the past.

"The usual consequences have been an appeal to social partners, Regional Governments and the Regional Trade Union movements and then a much wider international appeal," he recalled.