Government clarifies wage freeze reports

The Government has moved to clarify reports of a wage freeze in the public sector following protest by some unions sparked by a media report.



Minister without portfolio in the Finance Ministry, Dwight Nelson whose comment also led to panic among some public sector entities was quick to make it clear that no decision had been made to freeze wages.



But he was equally adamant that this option had not been ruled out by the Bruce Golding administration, which is grappling with a worsening fiscal problem.



Nelson was quoted on radio earlier today as saying that the worsening economic condition would leave the government in no position to pay public sector workers a seven per cent wage increase scheduled to take effect on April 1.



But he sought to make it clear that no decision had been made by the government.



Nelson said any response to the fiscal challenges would involve a mix of measures aimed at the public sector, which for this year will have a wage bill of 111-billion dollars.



He said the options to be placed on the table include freezing wages as was done by the PNP administration following consultations with the unions in 2002, cutting the number of workers in the public sector, merging or closing some state entities and reducing the level of waste in the public sector.



Nelson is slated to meet with unions representing public sector workers next Tuesday to further discuss the issue.