Trade union leaders who had been opposing the government’s decision to defer salary increases were scheduled to meet Thursday to consider a compromise after meeting Wednesday with Central Bank Governor Julian Francis, who spent two and a half hours giving them an in depth look at the present economic climate.
One union leader told the Bahama Journal that he had a better appreciation of why the government’s budget was so cautious and will try to better inform his members on fiscal matters.
Mr. Francis reportedly explained to about 30 trade unionists at the Central Bank that the current economic environment is such that the government would be foolhardy to spend more to increase the projected budget deficit beyond 2.2 percent of GDP.
The governor’s role at the meeting was to “inform not convince”, a source close to the meeting said.
Another source close to the government said it was important that the union leaders clearly understand the present situation as projections on revenue for the next fiscal year are still “a bit optimistic.”
The salary increases, which were scheduled to come into effect July 1, would amount to $24 million annually and would add $100 per month to the base pay of civil servants.
Ever since Prime Minister Perry Christie announced during the budget communication two weeks ago that the government simply cannot deliver on the promised salary increases at this time, his administration has been facing a firestorm from some trade union leaders intent on forcing the government to rethink its position.
The minister responsible for the Public Service Fred Mitchell and other government ministers have been working to convince trade union leaders that granting the increases are not now feasible.
In fact, Minister Mitchell said in the House of Assembly yesterday that he agreed with a recommendation from the International Monetary Fund that those increases be delayed for at least 12 months, although the government has said it should be in a position to make a payment by the end of this year.
Following the meeting, President of the Bahamas Public Services Union John Pinder expressed mixed views. Mr. Pinder said he thinks the government is trying to make the economic picture out to be worse that it actually is.
But he hinted that after more discussions, he could ease his position.
“We’re still in discussions,” Mr. Pinder said. “I wouldn’t say that we’re willing to compromise. However…as I get information I will try to pass it on to our members so that the general membership can have more knowledge of exactly how these budgets are prepared and how this government deficit has to be at a certain level and that sort of thing.”
He said, “We just want to critique the entire budget with a view of making some recommendations to the government as to how they can actually secure $24 million without having to [make] general tax increases.
“Once we are able to look at that budget, if we are satisfied that the government did the best it can to exercise financial prudence at this time, then we might have to…negotiate to see what other terms and conditions we can come up with.”
Bahamas Union of Teachers President Kingsley Black, who said he was willing to look at the issue closer, also said he still believed that the government could have made the payments a priority in the 2003-2004 budget which is now being debated in the House of Assembly.
“It is still our view that the choices the government made in the budget, if it really wanted to show that it appreciates public servants, it could have made other choices and not seek to hurt the civil servants,” Mr. Black told the Bahama Journal.
Last week, the leaders of the two umbrella trade unions were on opposite sides of the fence on the government’s decision to hold off on the salary adjustments.
Backing his counterparts in the Bahamas Public Services Union and The Bahamas Union of Teachers, National Congress of Trade Unions President Pat Bain said there should be no compromise.
In fact, he said NCTU affiliate unions are grossly insulted and disappointed by the announcement.
“The insult was that nobody in the government had the vision or the common courtesy to even inform the public servants of this problem,” Mr. Bain said. “They heard it like everyone else, in the budget debate. This speaks volumes of the level of disrespect to unions in this country and enough is enough.”
But Trade Union Congress President Obie Ferguson said the TUC is committed to a partnership relationship with the government, while one of his affiliate union leaders urged civil servants to forgo the salary increases for the time being.
“The only thing a sensible union would do is to wait and not to try to provoke a situation whereby we end up hurting the country rather than promoting it and helping it, ” said Huedley Moss, who leads the Bahamas Utilities Services and Allied Workers Unon.
Many civil servants continue to be incensed that they will not be receiving the pay hike, even though Prime Minister Christie has explained that the government would have to raise taxes to make the payout.
Some trade unionists, meanwhile, were scheduled to meet with Minister Mitchell Friday to discuss the matter further.
The trade unionists said yesterday that while they appreciate the dialogue and consultations that are now taking place, the government needs to be more proactive to prevent fall out
The Bahama Journal
