By Ariana Gordon

GUYANA is currently not in a financial position to dole out significant salary increases to public servants, Finance Minister Winston Jordan said yesterday. He was at the time hosting a press conference in the boardroom of his Ministry, after the International Monetary Fund (IMF) had commended Guyana for its progress thus far, but warned the Government of Guyana (GoG) against allocating large amounts of money towards salary increases.
“I agree with the IMF on this particular point,” he told reporters after being questioned on the issue. “As an economist and Minister of Finance I could only say that from the time I came in (office) I have been advising caution as it relates to wage increases and meeting exaggerative demands for wage increases. Even in good times, paying exaggerated salaries have serious short and long-term impacts.”

NO ‘EXAGGERATED SALARIES’
He said while he agrees with the IMF, it should be known that public servants will receive an increase in salaries before year-end but warned against them expecting “exaggerated salaries.” “We have to be careful when it comes to wages and expectations on wages because our economy is now coming out of the throes of a slowdown,” stated Jordan who explained that much more work needs to be done to beef up revenue collection.
The Finance Minister said that currently Trinidad and Tobago is “feeling the effects” of paying salaries that may have appeared sustainable but with the dramatic fall in prices on the world market “you are left hanging.”
As a result, Jordan said countries would be left with only two options, to cut salaries or cut employment. “So to avoid that kind of scenario down the road one always has to be extremely careful when matters to do with wages and increases are being considered.”

4 PER CENT GROWTH
Guyana’s economy grew by 3 per cent last year and is projected to grow by at least 4 per cent this year.
The Finance Minister was asked whether the current state of Guyana’s economy allows for negotiation for a decent salary increase for public servants and he replied, “I don’t know about room to negotiate…we will negotiate a salary increase this year that is sustainable and that we can meet with projected growth.” He said he has warned the trade union movements during consultations to be careful, given that the local economy is now coming out of the “throes of a slowdown.” “We are growing, but at the same time our revenues…we cannot pay with the expectation that revenues will come,” said Minister Jordan.
In his budget presentation, Jordan announced government’s decision to await the conclusion of discussions with the unions on salary increases before making public what the new increases will be.

COLLECTIVE BARGAINING
“The government understands the disappointment this will create among public servants, but wishes to assure them of our commitment to their welfare and advancement. We ask that they give the collective bargaining process an opportunity to work,” Jordan had said.
The decision by the APNU+AFC coalition government to await the conclusion of discussions with unions before announcing salary increases for public servants has been hailed by General Secretary of the Guyana Trades Union Congress (GTUC) Lincoln Lewis. Lewis described the move by the government as “the greatest victory” for unions in Guyana. Government had promised public servants a 20 per cent increase, particularly for those in the disciplined services during its campaign leading up to the May 11 elections, with the aim of reducing bribery.