Yesterday you heard from the NTUCB about the issues that the different unions currently have pending with the government. For the joint unions, they're still no closer to their 8.5% salary adjustment. The APSSM president, Sharon Frazer, explained that GOB's last proposal - which would be phased in over 3 years - would be contingent on pension reform. The president of the BNTU, Nadia Caliz, explained their position on the pension reform proposal.
Nadia Caliz, President, BNTU
"We are not going to support any contributory pension without a comprehensive salary review. Remember now, some of us are not being paid for the work that we do. Some of us are underpaid, and we have to ensure that it reflects everything that we do."
"So that's one of the key things. Another thing is that government is proposing 5% for new entrants. Well, we are just hearing about the phase-in, even though it's in the IMF report, at our table, we discussed something other than that."
"But do you remember what it felt like when you lost 10% one lick? A lot of you ended up in poverty. Now, this is the reason why the unions are saying they have to be a better approach to this contributory pension."
"And for the record, we are not against contributory pension. What we are saying is that when you look at the constitutional provision, 112 section B, that says whatever it is that exists now, if they are going to revise that, it must be something better." v "And government now wants to change the replacement rate from 67%, which some of you don't know this. You have to work 35 years to get 67%. Anything under that, it begins to drop to 59%, 58%, it comes down."
"So they keep chewing around 67%, but that's not so. Now, you know if the retirement age becomes mandatory 60, then you know that this will definitely have to, if you look at it from that perspective, increase, but government wants to bring it down to 50%."
"What they contribute, the replacement rate, they want to bring that down to 50%. We do not agree. We do not agree at all with the rate of contribution. Because if you look at pensions, let me ask these gentlemen, do you pay 50-50 with your employer?"
"Your employer pays more and then you pay the smaller amount. If you look at many pension schemes, the employer pays far more than the employee. And so we are definitely going to be discussing this with government because we cannot have a 50-50 timing."
"They have to take the majority."
There's no date yet for when the two sides plan to meet again.
