No wage increase for gov't workers
Published:Wednesday | April 20, 2011 | 12:00 AM
Edmond Campbell, Senior Staff Reporter
PUBLIC-SECTOR workers will face an unprecedented fourth year of wage freezes this financial year, even as the Government says it owes public servants $30 billion.
Finance and Public Service Minister Audley Shaw said under the International Monetary Fund (IMF) standby agreement, the medium-term programme called for a wage freeze up to the 2011-2012 fiscal year.
He was responding to questions from opposition MPs during yesterday's sitting of the Standing Finance Committee of Parliament which started its examination of the Estimates of Expenditure.
can't stand another year
Reacting to news of a fourth year of wage freezes for public-sector workers, president general of the Bustamante Industrial Trade Union (BITU), Kavan Gayle, said the workers would never be able to withstand another year without an increase in their wages.
"Given the ravages of the economy, given the extent to which their purchasing power has been destroyed ... the Government has the ability, at this time, to restore the confidence of public-sector workers by making good an intent to treat with, and, effectively, resolve the seven per cent issue in the upcoming Budget Debate. That is something we are expecting," he said.
However, Shaw told MPs yesterday that the Government was engaged in "very fruitful discussions" with unions representing public-sector workers.
"There is the issue of the seven per cent and the issue of the arrears," Shaw added.
But the finance minister suggested that the Government could not make a decision on the seven per cent payout until it consulted with the IMF.
"We have to have discussions with our partners, the IMF included, as well as Cabinet considerations," he explained.