S.Ganbaatar, the president of the Confederation of Trade Unions, answered our correspondent’s questions.

Q: The Government has decided to increase state workers’ salaries and pensions by 53 percent in the 2012 budget. Are you satisfied with that?

A: We have demanded several times that the Government raise salaries and pensions because the prices of consumer goods keep rising day by day. The average salary is MNT 300,000, and households can’t live on this amount. But salaries and pensions should be increased carefully, to avoid making inflation worse.

Q: What is your opinion on the proper level of increase?

A: The Government has decided to increase salaries and pensions by 27 percent in the first step and 26 percent in the second step. But it has not fulfilled its election promise to increase salary by three times. The Government has had the chance to increase salaries by three times and it should apologize to the people for not fulfilling that promise.

Q: The salary increases only apply to state workers, not workers in the private sector. What about that?

A: The CTU views that critically. The Government and the CTU should work together to increase the salaries of private sector workers, and private employers need to understand the effect that inflation is having on their workers’ living conditions.

Q: The Government can’t tell private businesses what they should pay their workers. Don’t those employers decided salaries for themselves?

A: The Government could urge private businesses to increase salaries. If those employers won’t increase salaries, the CTU would fight for it.

Q: How would you fight?

A: I think the people’s interests should not be trampled, and the CTU would lobby for legislation increasing the salaries of private sector workers. If employers won’t increase salaries, the CTU would submit the issue to the Government. If the private sector doesn’t increase salaries, workers will leave their jobs. The CTU will pay close attention to this issue.

Q: Some people oppose salary and pension increases because they will increase inflation. What do you think?

The price of goods has increased this year, but salaries and pensions have not. Also service fees, including electricity rates and bus tickets have increased in 2011. Inflation increases, but salaries don’t. If an employee earns MNT 300,000, how can he or she afford to buy an apartment?