The Bermuda Public Services Union is to keep a watch on Government spending after agreeing to a salary increase below the cost of living.

Union president Armell Thomas said members agreed to the three percent rise for 2008-9 due to "the way the economy is going" and the need to protect civil servants from job cuts.

The compromise however, will also require Government to play its part in cutting spending, according to Mr. Thomas.

"If we are tightening up our belts and showing we are doing the right thing, we will also try to make sure the Government does the right thing, as we don't want to be sold down the road if the Government continues to spend," he said.

Government announced the three percent salary increase for 2008-9 and "a salary only re-opener clause for the second and third year" on Tuesday.

The new collective agreement affects 1,700 civil servants. Mr. Thomas said: "Three percent was slightly below the cost of living at that time.

"We could have asked for more but we're trying to do the best for everyone, the way the economy is going. It has been a hard year so we don't want to be accountable later on, as far as no funds to pay the people are concerned. I am sure some members wanted more but we want to assure we can save jobs.

"We will be keeping an eye on Government spending, to make sure it spends wisely. The way everyone is cutting back, we will be watching."

Mr. Thomas said the BPSU will go back to the table in October, to negotiate "for just salaries" to 2011.

"It's a three-year agreement so only non-salaried items are for the three years. For salaries we will go back and negotiate. Sometimes cost of living costs can go drastically high."

A Government statement described the 12 negotiation meetings between chairpersons Carlita O'Brien for Government and Ed Ball, BPSU general secretary, as "meaningful dialogue in an atmosphere of respect and openness".

Mr. Thomas said: "They were very productive and I was very pleased by my team headed by Mr. Ed Ball."