Trade unions in Grenada have given the Keith Mitchell-led New National Party (NNP) government until the last day of the year to withdraw the controversial 5% income tax to be implemented from next month or face mass protest action.

The Management Committee of the Grenada Trades Union Council (GTUC) at a meeting on Saturday passed a resolution which warns the government of the serious implications for the country if the tax is not withdrawn.

The TUC which is the umbrella body for trade unions operating in the country has declared January 2006 as the “month of protest” action against the 5% levy.

The Mitchell administration has said that the tax which it labels as a “Reconstruction Levy” is needed to help in the rebuilding of the island following the destruction caused by two hurricanes in the past 14 months.

Well-placed sources told this newspaper that the TUC has decided to despatch delegations to meet with hoteliers, businessmen, religious leaders and other members of civil society to brief them on the issue.

A senior union official dropped hints that the TUC might call for a one hour shut down of the country on December 31 as a warning to the Mitchell government about how serious it was taking the tax on the working class in the country.

The Seamen and Waterfront Workers Union (SWWU) which is regarded as pro-NNP boycotted Saturday’s TUC meeting to discuss an action plan to combat the tax.

The TUC has been calling without any luck to get the Mitchell government to meet with the body to discuss the tax and to look at possible alternatives.

Following is the full text of the TUC resolution:

*Whereas Government has decided to apply a 5 % Levy on the wages and salaries of all workers earning over $1,000.00 per month with effect from January 1st, 2006; and,

*Considering the working class of our country is facing acute economic and social difficulties created by bad economic policies, poor economic management of the national economy characterized by uncontrolled waste and corruption and an unprecedented national debt of over EC$1.7 Billion; and,

*Considering also that this debt to GDP ratio is over 125 % - a situation that the IMF and other international multi-lateral financial institutions find alarming; and, being aware that the Government has not been truthful on the extent of the country's indebtedness; and,

*Given that Grenada runs second only to Antigua with respect to high retail prices given the Government's policy of heavy taxation on the port and its consequential impact on food prices and on other items necessary for living; and,

*Being aware that hurricanes Ivan and Emily destroyed thousands of homes of workers and their families, the majority of whom were without insurance; and,

*Knowledgeable of the fact that many workers are unable to finance either the restoration or rebuilding of their homes and many continue to live in substandard dwellings unprotected from the elements; and,

*Aware also that the State housing and housing repair assistance programme has become highly politicized, badly administered and afflicted with widespread corruption; and, large numbers of working people remain without help; and,

*Whereas large numbers of workers remain unemployed and family incomes have been reduced as a result of the unemployment created by Ivan; and,

*Concerned that inflation has already increased in excess of 8 % and that the 5 % levy when added to this increase shall impact upon the wages of workers by approximately 15 %; and,

*Whereas the Government has openly refused to meaningfully engage the Grenada Trades' Union Council and other social partners in the reconstruction process and continues to mal-administrate the scarce resources of our country;

Now therefore, this Special Convention of the Grenada Trades' Union Council meeting at the T A Marryshow Community College, Tanteen in the Parish of St George on this 17th day of December, 2005 Declares

(1) That the workers of our country are prepared to continue their sacrifice and to continue to build our country (2) That Government has lost the moral authority to impose any Levy or tax on the income of workers and that a crisis of confidence in governance of our country has arisen

Thus, the aforesaid Convention resolves :-

(1) To demand that Government immediately withdraw the legislation governing the National reconstruction Levy

(2) To authorise the Management Committee of the Grenada Trades' Union Council to issue a clear statement opposing the implementation of the 5 % Levy on workers wages and salaries

(3) To organise all workers and other sections of society and to act with other organisations which oppose the Levy to take all lawful and constitutional steps to peacefully protest by way of mass action were the Government to proceed to implement the Levy Deductions or refuses to withdraw it

(4) To officially communicate the position of this Convention to the Government, all Social Organisations and Political Parties

(5) That January 2006 be declared a month of protest were the Government to refuse to withdraw the Levy by December 31st, 2005.