The Editor, Sir:

It seems as if the Government and sections of its workforce are heading for a collision. As is always the case, each side has what seems to be sound ground on which they have based their intransigence.

The Government has stated that it cannot afford an increase at this time and has decreed a wage freeze. Hardly anyone would argue that the Government is in a strong financial position at present, hence the plea of inability to pay is a very credible argument, which may offer a pragmatic option but is legally indefensible. No party to a contract can unilaterally change the terms of that contract and impose the new condition upon the other party to the contract.

The police are positing that this seven per cent increase is not something that is subject to negotiation, as it is a contractual obligation coming out of a previous negotiation. They contend that the Budget should have reflected this obligation just as it has the interest payments to other lenders. That is a sound legal argument.

HANDLED BADLY

Any fair analysis of this situation must conclude that the Government has handled this one very badly. The inability to pay should have been known to the Government months before the due date of payment. It certainly would have made better sense to have called in the police and negotiate a deferral of payment. I am suggesting that even at this late hour a more conciliatory approach can lead to a resolution of this impasse.

May I suggest that the Government acknowledge the due payment as a debt and offer to pay that sum at the end of 365 days, along with interest, at the going rate of 365 days Treasury bills. Certificates of this commitment, redeemable at the Bank of Jamaica upon their maturity date, should be issued to each affected person. This solution would place those certificate holders who are in urgent need of cash to discount them and get cash earlier from anyone who is prepared to wait until the maturity date has come.

In this proposal:

The Government's cash flow would not be disturbed.

The workers' contract to receive their increase would have been honoured as per the agreed settlement.

While the Government might not have been in a position to pay immediately, the creditors would have been put in a position where they are not seriously embarrassed by the Government's weak position at this time.

A similar approach could be adopted in ironing out other sectors. Confrontation to determine who is tougher is a lose-lose situation. Objective thinking and dialogue can and will lead to a win-win solution.

Calling out the soldiers may seem to be the obvious move to the prime minister but that will certainly not solve the problem. Cerebral rather than muscular power is urgently required.

I am, etc.,

LUCIUS WHITE

Kingston