COVID-19 has, without question, significantly disrupted\u00a0 life as we know it and Government has had to bear the brunt of the impact. In the blink of\u00a0 an eye, Government had to take immediate, emergency policy action to provide support to households and businesses, which involved significant unplannedexpenditure.<\/p>\n
During the period September 8, 2020 to December 31, 2020, a team representing\u00a0 Government invited Trade Unions and Staff Associations to discuss the impact of the\u00a0 COVID-19 pandemic on the Public Service. Government\u2019s position was clear \u2013 there is\u00a0 an urgent need to adjust to the socio-economic consequences of the pandemic and,\u00a0 protect all workers whilst doing so. As part of the engagement, Government provided\u00a0 detailed information on the fiscal status.<\/p>\n
It is well known that travel restrictions severely impacted tourism, Grenada\u2019s largest\u00a0 economic sector. Consequently many hotels and other tourism-related businesses were\u00a0 forced to respond to the crisis by laying-off, rotating or reducing the salary of workers.\u00a0 Additionally, St. George\u2019s University, the island\u2019s largest contributor to the Gross\u00a0 Domestic Product shifted its teaching mode from face-to-face to online classes, resulting\u00a0 in the majority of international students returning to their homeland. Government has\u00a0 publicly stated that revenue collection was down by 50% by the end of June 2020. The\u00a0 Unions and Staff Associations were presented with the hard data including the\u00a0 conservative revenue projections for the last quarter in the face of continuing uncertainty.<\/p>\n
So, what was Government\u2019s objective? Simply put, Government was seeking\u00a0 consideration to forego the payment of the 4% salary increase due for 2021, which\u00a0 amounts to $13.2 million. Unable to secure a consensus after the first round of talks,\u00a0 Government subsequently requested a deferral of payment. Government acknowledges\u00a0 that the increases were agreed upon in good faith but is asking that consideration be\u00a0 given to deferring any significant increase in recurrent expenditure, at a time when the\u00a0 economic climate remains very uncertain. It must be noted that despite the ongoing\u00a0 challenges, Government has protected its workforce from the loss of jobs and wage cuts, while at the same time, providing bailouts for others. Wages and salaries for all public\u00a0 officers have been paid in full and on time every single month without fail, spending on\u00a0 social care programmes has been maintained; all whilst meeting its debt obligations and\u00a0 the necessary COVID-19 related expenditure.<\/p>\n
So, why is Government unable to pay the 4%? The fact of the matter is that Government\u00a0 must actually have $13.2 million to fund the increase in recurrent personnel expenditure. The 4% salary increase is a permanent addition to Government\u2019s wage bill, unlike the\u00a0 repurchase of the WRB shares in GRENLEC, which was a one-off expenditure on a\u00a0 revenue generating capital asset. To equate the two is ill-informed and willfully\u00a0 misleading. Further, the funds used for the GRENLEC repurchase came from grants and\u00a0 soft loans which were intended for capital development and any deviation can jeopardise\u00a0 Grenada\u2019s future eligibility for such funding.<\/p>\n
Let\u2019s examine the reality: A public officer who earns $3,000 monthly will receive an\u00a0 increase of $120, which is recurrent expenditure and not a one-off payment. Therefore,\u00a0 multiply that by 12 months and remember to add the increments, then consider what that\u00a0 means for Government. Further, it is important to note that there are thousands of workers\u00a0 on Government\u2019s payroll. These are the facts which the unions themselves can verify.<\/p>\n
That said, Government is by no means attempting to shirk its legal obligation. In fact, it is\u00a0 not in Government\u2019s interest to defer the 4%. A deferral means the return of retroactive\u00a0 salary payments and 8% compounded payable in January 2022.\u00a0Should Government\u00a0\u00a0agree to the terms of the Unions\u2019 requests, it will deviate from exercising prudent fiscal\u00a0\u00a0management.\u00a0There is certainly no desire to return to the pre-structural adjustment days\u00a0 when Government had to borrow to fund recurrent personnel expenditure. Government\u00a0 has made clear its intention to share quarterly financial statements with the unions to\u00a0 ensure full transparency in the process.<\/p>\n
In the final analysis, Government, in its discretion, deems it a reasonable ask to defer\u00a0 salary increases for 2021 given the uncertainty of the current situation. It is difficult to\u00a0 justify using scarce financial resources to fund a permanent increase in recurrent\u00a0 expenditure for workers whose jobs are secure and whose wages\/ salaries and<\/p>\n
allowances are paid on time, in full, every month; particularly where the imperative exists\u00a0 for economic recovery to the benefit of all citizens.\u00a0Is it that Government is being pushed\u00a0\u00a0to a situation where it will have to look at cutting expenditure and reducing the size of the\u00a0\u00a0workforce as part of this effort?<\/p>\n
Government recognises and appreciates the contribution of all Public Officers and in\u00a0 particular, commends workers in the health care sector and disciplined forces, for their\u00a0 diligent work, especially during this pandemic. Government also accepts that it should\u00a0 pay the increase; however, it reiterates that it is not able to afford payment in 2021 and\u00a0 cannot project when it can pay same, based on the ongoing economic uncertainty.\u00a0 Government reassures of its commitment to secure the jobs of all of its employees.\u00a0 Government has a responsibility to make the payment and it also has a responsibility to\u00a0 manage its financial resources, in the best interest of the nation. Government therefore\u00a0 kindly requests the understanding and acceptance of bargaining agents to defer the\u00a0 payment of the 4% salary\/wage increase for the year 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"
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