Agreement reached –Linden Municipality to begin clearing outstanding NIS payment
Linden Mayor Carwyn Holland
Linden Mayor Carwyn Holland

By Vanessa Braithwaite

THE MAYOR and Town Council (M&TC) of Linden and the National Insurance Scheme (NIS) have reportedly reached tentative agreement regarding liquidation of the $70 million owed to the NIS, for which that body has had to take the Council to court reportedly for the second time regarding outstanding NIS contributions.The Council has agreed to make monthly payments of $200,000 in an effort to clear the debt. The matter was concluded on April 6 last, and the decision allows for a review of the Council’s financial situation after six months, to ascertain whether the payment should be increased or remain as is. An understanding between the Council and the NIS is that these staggered payments cannot be decreased.

This decision will unfortunately not have a positive impact on Council workers receiving benefits from the National Insurance Scheme, because the Council cannot afford to pay the current NIS payment, which totals $800,000 per month.

The Council has revealed that it is not in a financial position to pay the current NIS, and therefore workers will still not receive benefits, and will not be in receipt of pension after retiring.

All 124 workers of the Council, ranging from junior to senior staff, will be affected by this situation. And as the Council clears the debt, it will continue to grow.

Town Clerk Jenelle Bowen has said the Council is forced to choose the lesser of two evils — paying wages and salaries — as funds are insufficient to allow for both payments.

“We have to choose the lesser of the evils. If we don’t pay wages and salaries, the next thing is the workers will get on the streets; so we try to pay wages and salaries,” she explained.

At last Wednesday’s statutory meeting, Councillor Leroy James described the situation as disgraceful, and called for Government’s intervention.

“That’s a human injustice. That’s gross indignity. That’s unacceptable. That should never be allowed to happen…. It is immoral and wrong; we cannot do that to human beings,” the Councillor affirmed, as he sought the Mayor’s permission to engage the Government for assistance on the issue.

He is optimistic that, with such a strong case, collective efforts will gain the Government’s attention on the issue.

Also commenting on the issue was Councillor Devin Sears, who, in a mathematical analysis, said it would take the Council 29 years to pay off the debt to NIS at the rate of $200,000 per month, and that does not include paying the current NIS rate.

“Mr. Mayor, at this time we need intervention — financial intervention. We need to start looking at direct solutions where we can generate and (garner) enough money to pay our debts to ensure our employees benefit from the little we have to offer at this Council,” he posited.

Mayor Carwyn Holland revealed that he did make representation with Central Government on behalf of the Council, and was given a positive word on the issue, as he, too, stressed that the quickest solution to the issue is financial intervention. He urged the managers of the Council, including the Town Clerk, to manage the Council effectively in order to prevent a recurrence of the financial challenges.

“I believe it should not be allowed in this Council. I believe persons are working hard, and we should respect their labour…. They deserve their benefits, gratuity etc; and I believe we should get intervention from Central Government on these issues,” the Mayor articulated.

Deputy Mayor Waneka Arindil, shedding light on the issue, said an NIS inspector had explained that once the Council provides a payment schedule to NIS, an employee requesting a benefit can duly receive same with permission from the NIS Head Office.

The councillors are hoping that with the toll booth being returned into operation and with increased funds being garnered from the Wismar/Mackenzie Bridge, the cash-strapped Council would be better able to liquidate its debts.

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