Labour Minister Dr Rashid Pelpuo has urged the Public Utilities Regulatory Commission (PURC) and organised labour to work closely to prevent any misstep that could destabilise the 2026 budget.

Speaking on Joy News’ PM Express on December 9, he emphasised the need for dialogue to ensure that labour and regulators understand each other fully and avoid decisions that could upset planned government expenditures.

“Government is very curious about what is going to happen. We are watching, and we are speaking to PURC, we are speaking to labour as well, and we want to make sure a close understanding of what has happened,” Dr Pelpuo said.

He noted that government will continue to honour promises to workers while encouraging both sides to maintain constructive engagement.

He warned that changes in figures after a budget has been approved could have long-term consequences.

“Government’s intervention will have a long-term effect… changing figures there will have a consequence of having a total effect on the figures that we put out already.

"So we are praying that this thing will be solved soon, that we don’t have to intervene in any form that will offset the situation PURC is putting across or that will unbalance the labour demands,” he said.

Dr Pelpuo also praised labour for understanding the country’s economic challenges and making sacrifices for the greater good.

“I’ve always been lucky to see that labour not just want to walk along, but also are willing to sacrifice a little… There comes a time when you need to sacrifice a lot for the general good of the people.

"And I find the working, you know, labour at all classes, at all levels, come to a point when they appreciate the situation we face ourselves,” he said.

He highlighted the importance of balancing compensation with government revenue.

“Should we spend 47% of our total revenue on compensation for people who are less than one million, or should we increase it to 50%? Should we increase it to 65%? These are all possibilities, dependent on how much request they are making for increases in salaries,” he explained.

On the impact of recent tariff increases, Dr Pelpuo said it is not about shortchanging workers but about managing total economic effects.

“It will be difficult to give you a direct answer… maybe we don’t call it short change, but we look at it as a question, how will it have a total effect on the worker? Is it going to be a direct consequence of deliberately hurting the income of workers and creating a problem for them?

"How can it be adjusted with government intervention in future? How can PURC have a conversation that will result in workers not feeling shortchanged?”

He added that the 9.8% increase was arrived at after careful consideration of multiple indicators, and should not be seen in a negative light.

“The negotiation that went on, including the influence of PURC, resulted in the 9.8%… which enabled them to come to reality and find what we presented today,” he said.