But what will happen to those who already struggle to pay their taxes if they are increased? The FinSec has suggested that government may have to raise taxes to cover the 8.5% salary increase that the unions are demanding.

Of course, the unions disagree - bitterly - and this was what Cabinet discussed yesterday.

The joint unions and the government meet again tomorrow and the PM confirmed that his negotiators will have a new proposal.

John Briceno, Prime Minister
"What I've said with the unions is that I won't comment, I want the ministers and the deputy prime minister who is in charge of that to be able to comment on that. They will meet with the unions tomorrow, as opposed to just sending the letter, they will meet with them, give them the letter, and we hope they're going to accept. I think we've been bending over trying to accommodate as best as we can but we're trying to do something not only for the unions but for the country because at the end of the day it's all of the taxpayers that will have to pay that."

Tags John Briceno Cabinet Unions