GWU resolute to resist 'unpopular' budget measures

The General Workers' Union warned yesterday it would not take lightly to any unpopular measures introduced in the budget, especially the widely expected increase in VAT.

The GWU will demand some kind of compensation "at once" for workers and the elderly if the government forges ahead with a three per cent increase in VAT, union general secretary Tony Zarb told The Times.

"It's up to the government to decide how and what kind of compensation can be given but all I can say is that we will insist on one," he said.

The government plans to raise VAT by three per cent, or else introduce a "consumption tax" during Monday's budget speech, according to informed sources reinforced by comments by the prime minister yesterday.

Employers have already warned against further pressures to increase the wage packet, which they fear could push companies out of business. The GRTU, Association of General Retailers and Traders also warned that retailers could not take any further "fiscal punishment".

Mr Zarb asked whether the government had really studied the repercussions of a three per cent consumption tax on businesses and the self-employed.

The government should tap other sources to plug its deficit and stop taxing the worker, he said.

"Tax evasion is still not being tackled seriously and this is where the government should be concentrating its efforts."

The union would be scrutinising the budget to see whether any concrete steps have been taken to deal with the unemployment problem. "We need to know what measures will be taken to safeguard jobs. Workers are being laid off and nothing seems to be a big deal."

Unemployment was rising at alarming levels, to the extent that in the space of a week, four big companies announced they would be shutting their doors, Mr Zarb said.

The GWU, Mr Zarb added, had put forward its own proposals to help the industry in general, especially in areas like research and innovation.

Asked whether the GWU had anything up its sleeve in case of any unpopular measures, Mr Zarb said it would be up to the union council to decide on any line of action.

"The government has heard our views; it's now up to it to act accordingly. One thing is certain, the GWU will not remain passive," Mr Zarb said.