Ivars Godmanis.

Prime minister was categorical in his announcement that the government is not going to pursue the salary policy that it has been implementing for the past four to five years, as the wages have grown much faster than work efficiency.

Godmanis underlined that the government does not want to adopt irresponsible and populist decisions to increase all salaries and to leave it to the future prime ministers and Cabinets of Ministers to deal with the consequences.

The government leader explained that there are only three possible solutions in the given economic situation – to increase the salaries, making a number of employees redundant, to freeze the salary increase, retaining the existing workplaces or, the third, the worst solution would be to raise taxes.

Prime minister pointed out that the government has clearly explained its opinion and has also listened to the labor unions' arguments regarding salaries and the state budget. Now it still has to hear the employers' opinion.

As reported, the National Trilateral Council meeting is going to take place later today, in which the government, the employers' associations and labor unions are going to discuss the next year's budget and the government's decision to freeze the salaries for all public sector workers next year.

Godmanis says that he does not believe that the solution of the situation, which would satisfy all the parties involved, will be reached after one conversation. He prognosticates that a number of meetings will follow.

Godmanis also pointed out that in case the draft budget is not confirmed would not mean that his government has to resign.