The Grenada Trade Union Council (TUC) is calling on the Keith Mitchell government to put a hold on the 5 percent reconstruction tax it plans to implement in the aftermath of Hurricane Ivan.

Acting President of TUC, Madonna Harford made the announcement Monday at a press conference held at the Office of the organisation at Marine Villa, St. George's. Harford told reporters that the island's umbrella trade union body after recognizing the huge increase in cost of living in recent days is strongly recommending that Government "immediately put a hold on the 5 percent reconstruction levy."

She said the increase in gas price has had a multiplying effect on the pockets of workers and the population in general. According to the TUC President, many of the workers it represents were not opposed to making a contribution to the rebuilding of the country after it was devastated by Ivan last year September.

However, Harford said that with the increase in goods and services they would find it very difficult to contribute to the fund since salaries have remained stagnant. She indicated that in light of the magnitude of the devastation to the island by Hurricanes Ivan and Emily in the past year, the TUC made several recommendations to government on raising the money for reconstruction.

TUC's General-Secretary, Rae Roberts stated that the trade union body suggested to the Mitchell government that any levy to be put on workers should be implemented incrementally - one percent in the first year, and two percent in each of the last two years.

He said the trade union movement also recommended that private sector businesses on the island should contribute another half-a-percent on corporate profits for a period of three years. In addition, it urged the NNP administration to impose a two percent tax to be collected at the port on luxury cars and vans for a three-year period.

The TUC also suggested that tourists coming into the country should contribute two US dollars to rebuild tourism sites and other centers of recreation. Roberts pointed out that these recommendations were sent to the Ministers of Finance and Labour but unfortunately the TUC did not receive even an acknowledgment from anyone of them.

The TUC is also calling on government to hold dialogue with the "social partners" in the country on the way forward. TUC Treasurer, Elliot Bishop who heads the Commercial and Industrial Workers Union (CIWU) warned government that immediate dialogue is needed before implementation of the 5 percent reconstruction tax.

Bishop said if this is not done there could be a "crisis situation" in the country.