Tunisia's powerful UGTT union said on Tuesday it had rejected a proposed 10% cut in public sector wages from the government, which is in talks with the International Monetary Fund on a new financing program.
UGTT leader Noureddine Taboubi also said the government, which says in public it is able to fulfill all its financial obligations, had told the union in closed meetings that it did not have even have the funds to pay public sector wages.
The North Africa country resumed talks last month with the IMF on a loan package predicated on Tunis imposing painful and unpopular reforms.
