Trades unions in Grenada are going ahead with plans to stage a general one day shut down of the island on Friday except in essential services. The action would take place the same day as the Keith Mitchell-led New National Party (NNP) presents the country's 2006 budget for the next financial year.

According to well-placed sources the trade unions have decided to go ahead with the strike regardless of the outcome of the current stage of negotiations with government on the controversial 5% National Reconstruction Levy, labelled as a return to Personal Income Tax.

The Grenada Chamber of Industry and Commerce (GCIC) is spearheading a move involving two other national bodies on the island to broker a deal between the administration and organised labour. A source close to the Grenada Trades Union Council (GTUC) told this newspaper that the strike would be held in such a manner as not to disrupt essential services like water and electricity supplies. "I don't think that you would see that at this early stage.

For instance, if you expect to see planes not landing at the Point Salines International Airport that would not happen. I can assure you that the workers there will not be taken off the job", she said. Most of the workers in the essential services are represented by the powerful Technical and Allied workers Union (TAWU) headed by President General, Senator Chester Humphrey.

The Public Workers Union (PWU) and the Grenada Union of Teachers (GUT) are the two other important bargaining bodies for public sector workers. The source spoke of the trade unions agreeing in principle that the "Red Letter Day" as decided by the TUC would be enforced on Friday and that workers are being encouraged to come out in numbers on Friday.

She said that the exact details have not been finalised but that workers are being asked to assemble in the south of the island for a march around the Morne Rouge playing field and then hold a mass meeting where union leaders would address them. The Royal Grenada Police Force (RGPF) is said to have denied a request by the GTUC to use a Public Address (PA) system on Friday.

Union officials have branded the move as reminiscent of the early 1970's under the rule of the labour party government of late Prime Minister Eric Gairy. The official said that workers would not be allowed to enter the compound of the Grenada Trade Center where Finance Minister Anthony Boatswain would be presenting government's budget.

Speculation is rife that Police officers have been undergoing special riot training in recent days in the face of the mounting pressures being brought to bear on the Mitchell government by the trade unions. The source warned that the trade unions are in favour of a solution to the impasse with government in order to avoid an escalation of the "Red Letter Day".

She said the unions do not want to be pushed into a general strike against the 5% levy. She indicated that in recent days the Mitchell government has been giving indications that it is prepared to make some compromises in talks between held by the GCIC-led team.

She spoke of the unions being able to already get 50% of its members off from paying the levy and the battle is to get the rest exempted. The Mitchell government has vowed to press ahead with the implementation of the tax on budget day. It issued a brief release on Wednesday which said: "The Government of Grenada will implement and announce the revised proposal on the National Reconstruction Levy on Friday January 20th, Budget Day.

"The revised position came as a recommendation from the Chamber of Commerce after consultations with the Chamber, Employers Federation, Conference of Churches and the Unions. "Government has not wavered from its position that the National Reconstruction Levy is absolutely necessary for the reconstruction of Grenada and the procurement of more international aid from friendly Governments.

"Government firmly believes that the sacrifices made by persons earning over 1000 dollars per month will go a long way towards assisting the most vulnerable groups and developing our youth, and our farmers".