Trade unions want inflation rate to be the only factor in the  calculation of the end-of-year compensation but the Mauritius Employers Federation favours a “flexible wage policy. “We have made it clear that trade union representatives will not participate in any discussions pertaining to productivity, capacity to pay and the rate of employment/unemployment. We'll talk on inflation and compensation. Nothing more, nothing less,” Reaz Chuttoo, one of the five TU representives designated to sit on the NPC, told the press after the meeting on Thursday.

The other representatives are: Toolsiraj Benydin, Cassam Kurreeman, Radhakrishna Sadien, and Lall Deonath.

Sadien told News on Sunday that in a letter addressed to trade unions, the Minister of Labour, Vasant Bunwaree, had earlier agreed that discussions to determine the objectives of the council will be held concurrently with the proceedings of the council but no such mention was made during this first meeting by the representatives of the Government.

The criteria of productivity, capacity to pay and employment/unemployment rate remain the bone of contention within the NPC. MEF insists that these criteria be considered for salary compensation calculations.

The TUs have also asked MEF to produce a list of enterprises which paid more than the prescribed compensation amount last year and the total amount of the additional compensations.

“Until now,  employers have refused to produce such a list. If we are to operate in a transparent manner on capacity to pay and other sensitive issues, employers will have to be more open and provide the maximum documents to us to have an informed opinion,” Tulsiraj Benydin said.

The TUs are expected to submit their proposals to the NPC before its second meeting scheduled for May 14.

The MEF has already submitted a memorandum on wage policies advocating  a minimum salary compensation, taking into consideration the increase in CPI, labour productivity and the varying ability to pay of different enterprises. “Our memorandum proposes a national plan, which takes into consideration different sectors of our economy. A cordial atmosphere prevailed at this first meeting of the council and if this continues, I believe things will effectively work out well for everyone,” Anwar Joonas, president, MEF, said.

Meanwhile, the Government Workers Federation disagrees with TUs participation in NPC meetings. It has set up  a Left Wing Trade Union Front with the collaboration of the Federation of Progressive Unions to  fight for a full salary compensation.

“We refuse to participate in the NPC discussions because none of the terms of proceedings has changed since last year.  This  is also confirmed in  a letter from  Minister Vasant Bunwaree. Neither NPC's chairman nor its regulations  will change until 2010,” said Ashok Subron, spokesperson of the Left Wing Trade Union Front.