Negotiations between the Government and the Public Sector Unions for the triennium 2007/08-2009/10
|
|
|
Contact: Rose Marie Harris
Wednesday, 03 September 2008 – The Government Negotiating Team (GNT), which was appointed by the Government as its representative to negotiate with the Public Sector Unions, wishes to apprise the public on the status of negotiations as well as to clarify certain misconceptions which have been reported in the media.
It is important to note at the outset that there was mutual agreement between the GNT and the Public Sector Unions to negotiate in good faith. In this regard both parties agreed to be honest, frank and open with each other in negotiations so as to complete the process as quickly as possible. Moreover, in order not to compromise the negotiations both parties agreed that information would not be released to the media while negotiations were ongoing. Given that the public sector unions have breached this agreement, the GNT believes that it is only fair to respond to some of the statements in order to clarify some of the issues raised.
The Ministries of Finance and Economic Affairs provided information to the public sector unions on the performance of the economy, the size of the wage bill, and the level of public debt. In an effort to assess Saint Lucia’s performance objectively, the public sector unions were also given information on relevant prudential indicators that the International Monetary Fund has established.
The cumulative increase requested by the public sector unions over the period 2007/08-2009-10 was 24% or 8 percent per year. A number of meetings were held between the GNT and the public sector unions and at the final meeting held between the GNT and the public sector unions, the GNT proposed the following:
Option 1 Option 2 2007/08 - 3% OR $2,000 2008/09 - 3% OR 5% 2009/10 - 7% OR 6% Total - 13%
The Public Sector Unions proposed the following:
2007/08 - 5% 2008/09 - 7% 2009/10 - 6% Total - 18%
The Trade Union Federation subsequently submitted a new proposal in writing. The offer made was as follows:
2007/08 - 4% 2008/09 - 7% 2009/10 - 5% Total - 16%
The GNT understands the need for a fair and reasonable wage increase to be granted to public officers. However, the GNT has a responsibility to ensure that wage increases are financially sustainable and do not impact adversely on the competitiveness of the economy.
The increase requested by the Unions of 16% would have major financial implications for the Government resulting in the need to increase debt, increase taxes or reduce expenditure on essential services. These options, in the view of the GNT are not desirable or responsible policy options.
In light of the foregoing, the GNT has proposed the following:
Option 1 OR Option 2 2007-08 - $2,000 3% 2008-09 - 5% 3% 2008-09 - 6% 7%
Furthermore, in the spirit of compromise, the GNT has proposed that salary and wage increases for the fiscal year 2007-08 would be tax-free.
To date, the GNT has not received a response to its offer. However, the GNT has observed that the President of the Saint Lucia Trade Union Federation has made statements to the media on the negotiations. This, in the view of the GNT is rather unfortunate and will only serve to delay the finalisation of negotiations.
The GNT wishes to state that its position on wages and salaries has been guided by, inter alia, the mandate provided by the Government, the economic and financial projections that were presented by the Ministries of Finance and Economic Affairs, the current and projected inflation rates, the offer of a fair and reasonable wage increase and the need to maintain the competitiveness of the economy. Therefore, it would not be in the best interest of the Saint Lucia economy and the overall welfare of Saint Lucians to increase wages by 16 percent. |
|
© 2008 Government Information Service. All rights reserved. Read our privacy guidelines. |
