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Palma.—Economy Councillor Julio Martinez said that if government worker privileges, especially those of union representatives in local authority positions aren't pruned right back, there will not only be a 22.2 million euro deficit at year end, but the Council will not be in a position to guarantee municipal salaries.

Martinez said that under a decree passed by regional Parliament in 2007, local authorities have to abide by agreements made with staff and public companies except in circumstances when the general public interest or indeed of the companies and workers themselves are put at risk.

“This is just such a situation said Martinez firmly. “We are trying to avoid having to deal with an historic deficit,” he said. “It's not us, the Partido Popular ruling team on the City Council who are saying so, the employees themselves are aware of the situation.

Martinez said that “if we don't take drastic steps we won't be able to guarantee everyone a salary.”

But the unions - the General Workers Union and the Workers Commission - were digging their heels in yesterday, returning to the negotiating table rejecting any attempts by the Council to cut staff.

The alternative policies of the unions, explained a spokesman yesterday, include having their own members filling senior Council posts and doing away with any private security services, which they say, can be undertaken by the Local Police.