Pay cut negotiations between Government and public sector workers are due to begin today.About 800 Bermuda Industrial Union members heard directly from Finance Ministry officials about the state of the economy and Government finances yesterday in preparation for this morning’s public sector pay negotiations.The close to two-hour meeting was off limits to the media, but BIU president Chris Furbert said it had been a productive meeting and confirmed negotiations with Government were due to begin this morning.Mr Furbert reported that those who attended yesterday’s meeting heard from Ministry of Finance officials who presented on the Island’s economy, the rate of inflation, and the state of Government revenues.“I thought it was a very positive meeting,” he said.The union also made a presentation to its members as to the way forward.“The Trade Union Congress has come together and decided to have one meeting with management. That meeting is going to take place tomorrow morning at 9am and we can hopefully put some suggestions on the table as to how the Government can save the money they are looking for.”Union members expressed some concerns and frustrations at yesterday’s meeting, he said.“People are a bit frustrated because right now they are struggling. They are struggling to make ends meet — to have their Belco bill go up, their insurance bills go up and the banks still having their mortgage rates as high as they are, that’s very concerning because their quality of life is under threat and their disposable income is under threat.”The SAGE Commission, with a mandate recommend measures to improve the effectiveness and efficiency of Government operations, is also a source of concern.“They are concerned about the SAGE Commission because one of the subcommittees is privatisation and outsourcing. That’s not a good word for trade unions — privatisation and outsourcing are two dangerous words we don’t want to hear,” Mr Furbert said.But he described the meeting as “extremely productive”.“The frustration for lack of a better word is that the Government is asking the workers to assist in one way or another and they are concerned about that.”Today’s meeting with the Government negotiators is expected to last all day.About half of the $1 billion cost of operating the Government goes to wages and salaries.The previous administration had been hoping to realise about $60 million in savings in the last financial year by freezing pensions contributions and imposing a matching pay cut for its 8,000 workers.While the unions involved appeared willing to go for the deal when it was proposed earlier last year, negotiations hit a snag when it emerged that the Police Association could not, for legal reasons, agree to it.The unions had agreed that the deal could only go ahead if all public workers were involved.