2015 Budget to decide salary increases –Trade Unionists weigh in
Finance Minister, Mr. Winston Jordan during one of his presentations in the House yesterday
Finance Minister, Mr. Winston Jordan during one of his presentations in the House yesterday

A HIGHLY anticipated move to increase public servants’ salaries is expected to be taken by the Coalition Government after the issue was touted extensively during the pre-elections campaign and even listed as part of its 100-day plan. But the realisation of this move by the two-month-old Administration will be revealed when the 2015 budget is presented in the National Assembly on August 10, 2015.

GPSU President, Mr. Patrick Yarde
GPSU President, Mr. Patrick Yarde

This was confirmed yesterday by Minister of Finance Winston Jordan during an invited comment, though he refused to disclose whether there would be any increases this year, and if so, what percentage, offering rather that the presentation of the 2015 Budget will clear the air in this regard.
Proposed too, had been a phased reduction and elimination of the Value Added Tax (VAT) on household commodities and essentials, which could result in increased spending power for citizens.
But according to the minister yesterday, while the Government remains committed to the fulfilment of its 100-day plan, a comprehensive study must be embarked upon to ascertain how the reduction of VAT must be implemented. Only by this means, he said, can the Government know what percentage of VAT can be reduced over what time-frame to sustain Guyana’s economy.
The two promises detailed in the 100-day plan read: “Immediately implement a phased reduction of VAT and the removal of VAT from food and other essential items” and “significant salary increases for Government workers, including nurses, teachers at the primary, secondary and tertiary levels, security personnel and civil servants on the traditional payroll.”
Weighing in on the realisation of the salary increases, which will benefit over 50 per cent of public sector workers, President of the Guyana Public Service Union (GPSU), Mr. Patrick Yarde said this move is “fully merited”.
According to Yarde, who plays an integral role in representing public servants, “All competent, diligent, true and non-political public servants have been surpassing targets despite poor conditions and services rendered to them.”
He explained that any move to either improve the conditions or services in terms of financial benefits for the public servant would be welcome, as they deserve better.
Just recently, the GPSU President said, a meeting with President Granger and the GPSU was held, and facilitated dialogue on concerns regarding the public sector. Subsequently, a delegation from the GPSU also met with a delegation from the Finance Ministry, and extensive discussions were featured. To this end, he noted that processes were agreed upon to the satisfaction of the union.
Offering a comment on behalf of the Guyana Trades Union Congress (GTUC) was General Secretary, Mr. Lincoln Lewis, who told this publication that his Union had examined the issue of increased salaries “from a different perspective”.
According to the veteran trade unionist, if the Government is serious about its plans to increase wages for public servants, they must first address the root cause of the problem, which he opined was “bunching”.
This “bunching”, he said, could be described as a person working at an agency for 10 years, and a colleague working at the same institution for three years, and the two receiving the same salary. His rationale is that issues of this nature must be addressed, if the solutions to financial inadequacies are to be unlocked.

GTUC General Secretary, Mr. Lincoln Lewis
GTUC General Secretary, Mr. Lincoln Lewis

But for this “de-bunching” to be arrived at, Lewis suggests: “They [the Government] must sit down with the Unions and address these issues, and come up with a strategy,” which he reiterated will unlock solutions to the problems facing the sector.
Just recently, in a press statement issued by the Opposition People’s Progressive Party (PPP) following a consultation on the 2015 Budget, the party revealed that the Finance Minister had advised that there would be “no removal of VAT” and “no 20% salary increases” for Government employees.
Additionally, it was stated that Jordan had advised the Party that his ministry was still in the process of preparing a three-month budget, which it is proposed will be laid in the National Assembly on August 10, 2015. This budget, he said, will project a three-per-cent economic growth, and concentrate on boosting aggregate demand.

By Ravin Singh

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