Bahamas News
02-08-05, - 02:12 AM
Civil Servants’ New Demands
Candia Dames
http://www.jonesbahamas.com/data/images/news/categories/cat_45/2304.jpg
BPSU President John Pinder
The Bahamas Public Services Union is asking the government to pay out nearly $70 million over the next two years in salary increases for civil servants as well as a number of other benefits its president believes are reasonable.
This would come as the government faces an estimated $140 million deficit at the end of this fiscal year.
BPSU President John Pinder said Monday that the union wants a one-time payment of $1,800 to be added to the base pay of each civil servant belonging to the union at the start of the contract in July and another $2,000 toward the end of the agreement in 2007.
He told the Bahama Journal that this would add up to around $68 million.
“The benefits that we’re asking for are very small benefits,” the BPSU President said.
Minister Pinder was asked to respond to a comment Minister of State for Finance James Smith made in a recent interview with the Journal regarding the need for the government to be cautious in the level of concessions it grants to public sector unions.
Minister Smith said that being too generous would threaten any economic gains the country now enjoys.
“We are engaged in any number of negotiations and discussions with labour in the public sector,” he noted.
“So we have to be very careful about what we can concede and do so only in terms of our ability to do so, so that we don’t lose any of the gains that we are now experiencing. So I really see the concerns being in the labour market.”
But Mr. Pinder said that the BPSU is actually giving the government a break.
“We took under consideration that the country went through two major hurricanes and that was one of the reasons why we didn’t ask for retroactive pay upon the completion of the last contract,” he said.
“The nature of industrial agreements normally speaks to contracts commencing from the expiration of the previous one. So we have asked for our new contract to commence in July. The concessions we asked for were over 20 years old.”
Mr. Pinder said these include an increase in gas mileage, which now stands at around 45 cents per mile; and an improvement in pension packages, “which is a major thing”.
“The flip side is that we are actually making a contribution to the revenue [of the government] by ensuring that our members are now paying their correct amount of National Insurance contributions so that we can also get our benefits at the end of our working life,” he said. “We haven’t asked for much and are sure the government can afford what we are asking for.”
Mr. Pinder said he believes why Minister Smith may have some concerns.
“We’re trying to put a performance clause in our contract,” the union president explained. “The person who has outstanding performance, perfect attendance and good punctuality would get some incentive, some $500 in bonus at the end of the fiscal year or the working year.”
He said this would be in addition to the $68 million and estimated that about 20 percent of public servants may qualify for the extra $500.
“We would like to see that figure increased each year,” he said, referring to the percentage of workers qualifying for the $500.
“That way we could have a more efficient public service and that in itself would save the government money. Each person would be carrying [his or her] weight, so to speak.”
Mr. Pinder said Minister Smith is presently reviewing the figures and looking at how the increased salaries and benefits could be incorporated into the 2005-2006 budget.
The government faced a firestorm in 2003 when it decided to delay the promised salary increase of $1,200 to each civil servant. The increase, which was agreed to under the Ingraham Administration, amounted to $24 million and led to months of tedious negotiations between the Christie Administration and public sector unions, which had demanded that the amount be paid immediately.
During his budget communication to parliament that year, Prime Minister and Minister of Finance Perry Christie had indicated that the payments would have been burdensome to an already cash-strapped government.
At the time, Minister Smith also said that the government needed to act responsibly in the handling of its fiscal affairs, which is why the delay became necessary.
“We in The Bahamas want the international community to know that we are acting responsibly,” he said.
The government eventually met its obligations to civil servants. Government officials, meanwhile, are hoping that the tedious and contentions talks they had with unions in 2003 over the payment of salary hikes will not be repeated this time around.
Candia Dames
http://www.jonesbahamas.com/data/images/news/categories/cat_45/2304.jpg
BPSU President John Pinder
The Bahamas Public Services Union is asking the government to pay out nearly $70 million over the next two years in salary increases for civil servants as well as a number of other benefits its president believes are reasonable.
This would come as the government faces an estimated $140 million deficit at the end of this fiscal year.
BPSU President John Pinder said Monday that the union wants a one-time payment of $1,800 to be added to the base pay of each civil servant belonging to the union at the start of the contract in July and another $2,000 toward the end of the agreement in 2007.
He told the Bahama Journal that this would add up to around $68 million.
“The benefits that we’re asking for are very small benefits,” the BPSU President said.
Minister Pinder was asked to respond to a comment Minister of State for Finance James Smith made in a recent interview with the Journal regarding the need for the government to be cautious in the level of concessions it grants to public sector unions.
Minister Smith said that being too generous would threaten any economic gains the country now enjoys.
“We are engaged in any number of negotiations and discussions with labour in the public sector,” he noted.
“So we have to be very careful about what we can concede and do so only in terms of our ability to do so, so that we don’t lose any of the gains that we are now experiencing. So I really see the concerns being in the labour market.”
But Mr. Pinder said that the BPSU is actually giving the government a break.
“We took under consideration that the country went through two major hurricanes and that was one of the reasons why we didn’t ask for retroactive pay upon the completion of the last contract,” he said.
“The nature of industrial agreements normally speaks to contracts commencing from the expiration of the previous one. So we have asked for our new contract to commence in July. The concessions we asked for were over 20 years old.”
Mr. Pinder said these include an increase in gas mileage, which now stands at around 45 cents per mile; and an improvement in pension packages, “which is a major thing”.
“The flip side is that we are actually making a contribution to the revenue [of the government] by ensuring that our members are now paying their correct amount of National Insurance contributions so that we can also get our benefits at the end of our working life,” he said. “We haven’t asked for much and are sure the government can afford what we are asking for.”
Mr. Pinder said he believes why Minister Smith may have some concerns.
“We’re trying to put a performance clause in our contract,” the union president explained. “The person who has outstanding performance, perfect attendance and good punctuality would get some incentive, some $500 in bonus at the end of the fiscal year or the working year.”
He said this would be in addition to the $68 million and estimated that about 20 percent of public servants may qualify for the extra $500.
“We would like to see that figure increased each year,” he said, referring to the percentage of workers qualifying for the $500.
“That way we could have a more efficient public service and that in itself would save the government money. Each person would be carrying [his or her] weight, so to speak.”
Mr. Pinder said Minister Smith is presently reviewing the figures and looking at how the increased salaries and benefits could be incorporated into the 2005-2006 budget.
The government faced a firestorm in 2003 when it decided to delay the promised salary increase of $1,200 to each civil servant. The increase, which was agreed to under the Ingraham Administration, amounted to $24 million and led to months of tedious negotiations between the Christie Administration and public sector unions, which had demanded that the amount be paid immediately.
During his budget communication to parliament that year, Prime Minister and Minister of Finance Perry Christie had indicated that the payments would have been burdensome to an already cash-strapped government.
At the time, Minister Smith also said that the government needed to act responsibly in the handling of its fiscal affairs, which is why the delay became necessary.
“We in The Bahamas want the international community to know that we are acting responsibly,” he said.
The government eventually met its obligations to civil servants. Government officials, meanwhile, are hoping that the tedious and contentions talks they had with unions in 2003 over the payment of salary hikes will not be repeated this time around.