EDITORIAL: ‘Wait and see’ on requested pay hike

JUST how much government intends offering public officers in terms of a pay increase will be difficult to pin down. What is anticipated is that given the several issues which will inform the discussions/negotiations between Government and the trade unions, there will most likely be some hard fought deliberations.

 

The National Union of Public Workers (NUPW) has signaled just what level of increase it thinks is necessary for its members, who last had one in 2009. It is believed to be about 23 per cent over a period of time. It is unknown whether Government, through the Ministry of the Civil Service, is in a position to meet that request, although it is doubtful that will be the final proposal. It is an acceptable fact that in negotiations for pay increases trade unions usually put forward a figure to test the waters and this could possibly be the case in this instance. The other side makes a counteroffer or none at all, indicating to the union that it is in no position to grant an increase because the economy (or a company when the private sector is involved) is in no position to grant the increase. What one further gets is that the other side relaxes its demand and like a cat and mouse, it continues with offers and counteroffers until there is some common ground between the two sides.

 

As was stated earlier, this country’s public officers have not had a pay increase since 2009. In the scheme of things pay increases in this neck of the woods are usually linked to inflation – the general level of price increases in the economy. It is only in recent times that prices have stabilized somewhat and even then consumers are still seeing price increases. At the end of last year the official position was that there was no increase in retail prices, a reflection of the persistent slide in international oil prices since the beginning of 2014.

 

More recently and in particular for the three months ended March 2016, the same retail prices are estimated to have remained unchanged for the quarter, said the Central Bank of Barbados in its review of the economy for those three months.

 

At another level the Minister of Finance and Economic Affairs, The Honourable Christopher Sinckler, was quoted on television as saying that based on the offer tendered it could cost the Government approximately $150 million. He went further by acknowledging the length of time the officers have gone without a pay increase but quickly mentioned that the fiscal consolidation programme to reduce the deficit to more manageable levels is still very much with us. He predicts that once the final figures are tabulated the deficit should be down about four per cent of GDP.

 

However, additional spending on increased wages will increase that deficit at a time Government is seeking to lower the deficit. The Government’s wages bill for the current financial year is estimated at $758.6 million, a far cry from the over $900 million when the decision was taken to cut back on public sector employment. Even now there is still talk about additional cuts in the public service.

 

So against the background of the officers having not had a pay increase for so many years, Government still attempting to balance its books, and no price increase, we will wait to see how these negotiations go.