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The national officer for the Communications Workers Union says the Manx government's policy of a public sector pay freeze is creating a real problem for the Island.
Terry Pullinger was speaking after last ditch talks with Post Office management led to the cancellation of next Tuesday's 24-hour strike.
The dispute over pay hasn't been resolved but the two sides have agreed a framework for future talks, at which possible solutions will be explored.
However, Mr Pullinger says the government's stance hasn't been helpful and claims it isn't sustainable (first part of audio file):
Mr Pullinger believes it could take some time to resolve issues at the Post Office, and is warning similar difficulties could arise in other areas (second part of audio file):
A short statement was released by Isle of Man Post Office following yesterday's talks.
Chief executive Mike Kelly says he is very pleased to have been able to agree a framework with the CWU, which will help the two parties explore ways to resolve the current dispute.
He continues by saying the Post Office and the CWU recognise future talks will still have to overcome some difficult challenges.
However, the Post Office is confident both parties are now committed to finding a solution.
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