The Tonga Government has conceded to the basic demands of the national civil servants strike, including back-dated 60-70-80% pay rises, no disciplinary actions, and a two year suspension of the salary review that led to the six weeks old strike.

All Tonga is waiting for now is the PSA's signature to an MOU that was agreed in principal yesterday by both parties following a demand by the PSA for a written agreement before a return to work was possible.

Details of the understanding reached between the negotiators were released this afternoon by the Government team, following last night's indefinite postponement by the PSA of the signing of the MOU that will end the strike.

The chairman of the government negotiation sub-committee, the Hon. Fielakepa, this afternoon in a press conference read the MOU that the two negotiation teams had agreed to on the afternoon of September 2.

The announcement was broadcast live on Radio Tonga, and questions were answered by Paula Ma'u and Sitiveni Finau for government.

Paula said that although the MOU spelled out a return to work on Monday, there was no deadline, and striking civil servants who return to work would not be disciplined.

He also said that if the PSA were still not happy with the terms of the MOU then government was willing to negotiate further.

However, following the indefinite postponement of the signing of the MOU last night government had not heard from the PSA.

The Secretary of the PSA, Vuna Fa'otusia, who is one of the negotiators, told Matangi Tonga this morning that he was preparing a submission to present to a PSA meeting at midday today. It was understood that he favoured trying to get the PSA members to focus on the salary demands so that they could get back to work.

The MOU

The text of the new Memorandum of Understanding is as follows:

"The Cabinet negotiation sub-committee on behalf of the Government of Tonga and the Negotiation Team for the Interim Committee for Dissatisfied Civil Servants on strike AND

the Negotiation Team for the Interim Committee for Dissatisfied Civil Servants on Strike

That the strike action by Government of Tonga Civil Servants in relation to the demand for new salary scale will end on Friday 2 September 2005 on the conditions that:

1. All civil servants will resume duties at their respective work places at 8:30am on Monday 5 September 2005.

2. The approved salary scale as at 30 June 2005 is to be implemented by Government, effective from 1 July 2005, in the following manner.

(a) Levels 2-5 60% increase

(b) Levels 6-10 70% increase

(c) Levels 11-14 80% increase

3. That the new salary scale will be paid in two (2) tranches as follows:

(a) 60% effective as from July 1 2005; and

(b) 40% effective as from July 1 2006 and backdated to July 1 2005.

4. The salary of all civil servants on strike will be paid for the period of the strike on the salary scale agreed to in clause 2.

5. Civil servants who are on strike will not be disciplined.

6. Students enrolled at government schools who supported the strike will not be disciplined, with the exception of students who are subject to court proceedings.

7. The implementation of the Public Service Salary Review that was approved by Government on June 30 2005 as effective on July 1 2005 will be deferred for two (2) years.

8. That aside from the ongoing and proposed taxation reforms currently under the Economic Reform Programme, there would be no increase of any taxes because of the salary increase."