We all know about government's fiscal crisis - and, a very big part of that is the enormous wage bill - which - east up more than 75 cents of every dollar government collects.
And as the fiscal woes deepen, it's coming to a head with the wage bill for close to 15,000 pubic officers and teachers. Government is borrowing daily to keep them paid at 100% and many feel that a pay cut is inevitable.
But, the PSU and the BNTU will not take that sitting down. And that's why an alarm was raised today when a letter from the Belize Business Bureau was circulated saying, QUOTE, "we fully support government in its decision to implement a wage reduction of 15% across the board."
And the unions were like, "Say what!? What decision!?"
Well, another version of that letter quickly came out saying that some mischief was afoot - that in fact the bureau was recommending a 15% pay cut, not the government.
This evening after the house meeting here's what the PM said about the letter and the bigger issue of an across the board pay cut:
Reporter
"There is some rumor that this letter from the BBB is fake. Is that so?"
Hon. John Briceno, Prime Minister
"I have no idea. What I can tell you is that we gave a presentation to them on what is the financial situation and whether it is fake or not, I know that I got 2; the first one and then the second one which was the corrected one or at least that was the one that I got from them where they are saying that it is their recommendation and that is not a recommendation from government."
Reporter
"Clarifying: the government did not proposed that to them at all?"
Hon. John Briceno, Prime Minister
"No, we did not proposed that to them at all."
Reporter
"Is that amiable to you, you've already taken 10% as ministers."
Hon. John Briceno, Prime Minister
"We have already taken 10% and as I pointed out from quite some time ago that we have a 500 million dollars deficit that the UDP government left us with and we have to find a way how we are going to address it and our idea with the consultations is that we want to go to social partners and to the unions who are our partners in government and say well this is what we have. How can we best close this gap as best as possibly can."
Reporter
"So a cut is coming for public servants because you also said we're going to set the tone. That means that it will follow for public servants."
Hon. John Briceno, Prime Minister
"That's what you are saying. As I told you the first time around when we spoke about this, we are going with a blank sheet and let's sit down and see how best. We want to hear from them and I hope that they are also going to be mature enough to see what is the problem. They see the numbers on a daily basis. They see how much monies we are collecting, they know the shortfalls, they know the deficits and that they would act as true partners with us and then come up with something that is amenable and that could address the issue now. We can't wait one or two years - we are looking at taxes for instance. We can't raise taxes in a time when businesses are struggling to survive."
This evening the PSU sent out a release saying, quote,
"The PSU notes with concern, the rumours being circulated on social media of a proposed 15% salary cut purportedly being pushed or recommended by the Belize Business Bureau. The PSU wishes to state for the record that we reject any such highhanded approach and attack on Public Officers salary and more importantly against the livelihood of our Members.
The PSU approach promises to be one of maturity and soberness, with a view of ensuring that there is a holistic undertaking in addressing the budget deficit. Included in the conversation, must be the issue of revenue enhancement and more specifically the closing of the loopholes that exists in revenue collecting departments such as Customs, Lands and Tax Services, with a view of ensuring that the private sector contributes its fair pound of flesh where taxes are concerned. In addition, the time has come for us to have the conversation surrounding a more balanced and equitable distribution of the tax burden."
End quote. And while savings in general have been a repeated refrain for the unions - the PM said today that it doesn't amount to a whole lot:
Hon. John Briceno, Prime Minister
"The cost saving measures that they have already recommended to the financial secretary, the financial secretary has pointed out to us that is only going to save about 1%. It's nowhere close to where we need to be."
Reporter
"That is incredible. I would have thought that it was way much more than that."
Hon. John Briceno, Prime Minister
"1% of GDP. The deficit for this year will be close to 13% of GDP."
Reporter
"Which means then that there will be some serious belt tightening that the public servants would have to undertake."
Hon. John Briceno, Prime Minister
"That all of us would have to undertake. That is why I'm saying that we are hoping that the public service union and the BNTU would also be responsible enough to know that sacrifices have to be made."
