DFC's offices countrywide were either closed or running on skeleton staff today, as three quarters of the corporation's employees simply walked off the job, and they say they won't go back, until government comes to the table to talk over serious matters.
The dispute is over government's recently announced plans to forgive DFC debt to 2,500 persons who owe the corporation, which will cost the DFC $26 million. In terms of households, over 8,000 persons could stand to benefit from the debt forgiveness programme.
Politically, it's great, but the DFC employees say that in practical terms, a lot of it just doesn't make sense. And remember, these are the same employees who last year insisted to government that DFC could be salvaged, and didn't have to be shut down. Government listened then, and those same workers demand that it must listen now. We found out more about why DFC workers are vex.
Jules Vasquez Reporting,
After 9:30 this morning, those who went to the DFC Office in Belize City found this, a sign that says "Closed." The door was locked shut and no one appeared to be inside. The union reports that a skeleton staff of 5 stayed on at the headquarters in Belmopan while the office in Dangriga was closed, and Orange Walk remained opened.
80% of DFC's 72 employees nationally were asked to walk off the job this morning. Their leader is this man: Emerson Burke, the chief shop steward of the union of the DFC and Vice-President of the Christian Workers Union nationally. He told the press today that the union had to take this plan because government has adopted counter-productive policies and done so without consultation.
Emerson Burke,
"Our message to government then is to allow the DFC and allow the members of management to do what we had set out to do in our mandate last year and that is to collect on those loans that are outstanding whilst we consider those who legitimately cannot afford to pay. That sort of relief is what we think is important, it is mature, and it makes good sound financial sense. This as it is, lacks logic."
And they say it lacks logic because while government is offering discounts,
not all who will qualify are worthy.
Emerson Burke,
"There are people with loans at the DFC, housing loans, who will benefit from this, who have several loans, have two, three, and in some instances four housing loans and four properties. These are not poor people. But again, it cannot be said that someone who has gotten a student loan of $60,000 or $100,000 to study law and is working in some prestigious law firm ought to be getting 30% off a student loan and of course that 30% will have to be met by the taxpayers of this country who, again, were designed to benefit from the initiative in the first place.
To us, we find it appalling and for example, if we have an individual who owes $3 million, you walk into t the DFC with $2.1 million, you are in effect forgiving $900,000 from somebody, perhaps, who can legitimately pay. That is the bottom line. It is flawed, it makes no sense. The relief ought not to go to those who can legitimately pay."
And while it's hard to argue with the thousands who will be getting discounts under the DFC discount programs, Burke says if it is not done right, we will pay tomorrow for what we're doing today.
Emerson Burke,
"What is lost in one area, must be made up in another. It is GOB and therefore the taxpayers of this country who will have to foot the bill eventually. The financial implication, then, lies on the backs of perhaps even those the very initiative is geared to help, to assist. We must be wary."
But that wariness could very easily be interpreted as mean-ness; that the DFC employees are only speaking up now when real people, small people are getting a write-off but those saqme employees had nothing to say when fat cats and government's wealthy friends were whistling past the DFC graveyard.
Emerson Burke,
"It is hard to tell the student out there, 'look, we do not agree entirely with a broad based discount.' Perhaps, 50% of loans under $5,000 is a reasonable discount. Perhaps telling the single mother, the family with five or six in a household barely catching their tail, 'look we are going to give you 20%, 25%, or 30% discount,' but it is based on a sound analysis of the portfolio itself.
We are saying Juliet that in essence the kind of relief that is offered to the Belizean public in terms of housing loans and student loans is far overdue, it is far overdue. But we are saying for any form of relief, it must be studied carefully so that we don't give the kind of relief to those who can legitimately pay their loans."
And that he says is what shows that the plan is half baked, hasty and costly.
Emerson Burke,
"Let's not run away with the thought that we can just broad-base offer these kinds of discounts to any Tom and Harry. These chickens will come home to roost and the taxpayers of this country, the very same people whom will end up in the short term benefiting from this sort of initiative will end up paying the tab through taxes. It does not make sound financial sense to make these sorts of broad-based discounts costing the Belizean people $26 million and going back to borrow $50 million."
And now Burke says they are not going back to work until government comes to the table to talk and do more study - because they owe them a consultation.
Emerson Burke,
"The broad based initiative proposed by government of Belize are flawed. They fly in the face of what was promised to us: consultations. That was a commitment given to us before any major decision impacting on the country and itself would have been brought to our attention and certainly not through some press release. We have not gone to the streets, we are not picketing, we are not protesting in that form, in that fashion. Our position remains that the government of Belize needs to come to the table with those whom the government promised to sit with and to dialogue.
We are in the midst of putting things right. we have gone through the recommendations for restructuring of the organization and we believe that if we are serious about getting it done right, the sort of initiative that GOB has embarked on is certainly contrary to what it says it will do. Set it right."
And according to Burke, a fire sale, which is what he calls this, will not set it right.
Emerson Burke,
"We are in the midst of liquidation and not a fire sale, a cheap sale per se. What we are saying is, 'Stop it, let's consider it, get back to the table, listen to those of us who have done the analysis and implement a policy that is sound, that is principle-based, and one that sees legitimate and real benefit going to the poor people of this country.'"
The Christian Workers Union, which represents 80% of the DFC employees has written the Prime Minister a letter asking for a meeting. And they say until they get that, they won't return to work. DFC's portfolio, downsized from $600 million, is now worth about $350 million spread across 5,600 loans.
