Papua New Guinea's public sector unions has given the government seven days to end cost cutting measures or else face possible strike action.
The chairman of the Combined Public Sector Unions, Napoleon Liosi says they are opposed to the government's decision to freeze salary and wages as well as other entitlements such as paid leave.
Mr Liosi says the government's unilateral action has denied workers the right to negotiate protection of their financial entitlements as well as where and how cutbacks should be made.
He says the government should not touch workers financial entitlements as there are other areas within the public sector that needs trimming.
"Ghost names on the payroll of the state servies. We think that this area should be addressed we have quite a lot of consultants and they do not appear to be making any difference. The other matter is premature termination of contracts which often result in massive payouts."