Last Friday, we told you about the wage cuts that the Briceno Administration is proposing to the public service and teachers unions, as well as the Association of Public Service Senior Managers.
Our initial information was that the government was hoping to trim 60 million dollars off the wage bill, but we've since learned that the actual sum is 80 million dollars. The initial proposal is for 60 million dollars or a 10% cut on salaries, and an additional 20 million dollars on increments and benefits.
The government is trying to contain the country's massive debt to GDP ratio, which is approximated at 135% or more than double the prudential benchmark. The Public Service Union has been conducting consultations with its members for the last few days now - the most recent held via zoom at noon today. This evening, we got a chance to speak with one of the union's executive members about how those talks are progressing. Here's what the 1st Vice President told us about how public servants are reacting to that proposed pay cut in these tough economic times:
Dean Flowers - 1st VP, Public Service Union
"In essence, the discussions where the government is concerned hovers around a reduction in the wage bill of around 80 million dollars, 20 million, which is proposed to come from increments, and 60 million, which is to come from salaries and wages."
"What we're doing is sensitizing members about the proposal, and the reality where the government's request is concerned. The government has said to us that this is their targeted number, albeit it is not written in stone. It is merely a proposal, and they're saying to us that they welcome any alternate suggestion or proposal that could possibly yield the kind of results that they're expecting, or that they're hoping for in their projections. We're looking at everything. We came to the discussion table with an open mind, and we're going to membership with an open mind."
"I believe the proposed date for us to provide a response is the 15th of March, and so throughout this week, we will be putting together those proposals. Our consultation with membership continues, but we have a targeted deadline, which is today. Today at 5 p.m., we close off the survey, and then, we start collating all the information, and suggestions. Then, we put together firm proposals and different options that we will be tabling to the government."
Reporter
"Are there any concerns that maybe the burden or the pain of trying to fill this massive fiscal hole is not being shared equally?"
Dean Flowers
"Yes, I think overwhelmingly, that is how public officers feel, that they don't think that it's equitable, and they surely don't feel that it's homegrown. So, that is part of our mandate, to ensure that it is homegrown and that it is equitable."
"I think that what we're seeing is merely more forceful suggestions coming from the membership that this time around, we must get it right. We must get it right where monitoring is concerned, where implementation is concerned, and where discipline is concerned on the expenditure side. So, I think what will come out of this exercise is a well-researched position by the PSU."
The PSU will start compiling their counter-proposals in the next few days, to meet the Government's deadline.
