Public sector unions in Papua New Guinea have relented from their threat to hold a nationwide strike next week over a wage freeze by the government.
Following two weeks of talks with the department of personnel management, led by the public service minister Dr Puka Temu, the unions have agreed to return to the negotiating table.
Both sides have decided to compromise, with the government saying it will direct the Independent Consumer Competitions Commission to ensure that prices of goods and services are reasonable.
Dr Temu says the unions have accepted that any increases in wages during negotiations this year will not be awarded until 2004 and 2005.
