At least one union representing workers at the National Water Commission (NWC) has expressed concern about reports that salaries were to be frozen at the state-owned entity.

But the management of the commission says no such decision has yet been made.

Yesterday, the National Workers Union (NWU), one of the five unions representing NWC employees, claimed that its members were restive and could take industrial action to protest against a decision by the company not to implement an eight per cent wage increase that should have become effective April 1.

"We cannot accept that the increase will not be paid and that the company has decided not to observe a contractual agreement," Granville Valentine, vice-president of the NWU, told The Gleaner.

"The NWC is not funded from the Budget and it has indicated that it has the ability to pay, so if the Government implements a wage freeze, it should not affect NWC employees," Valentine added.

He said the NWU was open to discussions with the management on the wage freeze and other issues affecting the welfare of the workers.

But the management of the NWC said it was still awaiting word from the Ministry of Finance on the scheduled wage increase.

While admitting that the increase should have been implemented at the start of April, the NWC said it was making arrangements to honour the contractual agreement when it receive word from the finance ministry.

"We were told not to make any changes in salaries or payments until we receive further instructions and we don't know what that will be," said Charles Buchanan, corporate public relations manager at the NWC.

Last month, the Government announced a freeze in public-sector wages and argued that it could not afford to pay the scheduled seven per cent increase.

But the administration did not say if this wage freeze would apply to public entities, such as the NWC, not financed from the Budget.

In the 2008-2009 fiscal year, the NWC recorded a estimated operating loss of $2.4 billion with projections that this will be reduced to $913 million this year.

arthur.hall@gleanerjm.com