In the present economic climate, the Government is justified in limiting salary increases for public servants as the hikes the unions are seeking will raise Government's annual expenditure by several billion dollars, a situation which can lead the country directly into the hands of the IMF (International Monetary Fund) again. This situation is almost identical to the one in which T&T found itself in the mid-1980s when public servants were indeed granted substantial salary increases by the Government of the day and which were ultimately unsustainable and contributed to economic recession and a coup attempt when oil prices hit rock bottom.
The union leaders at the time were the most vocal, divisive group in the land, severely denouncing the Government for dealing with the IMF but never admitting that their unreasonable demands for pay increases had contributed to emptying the Treasury and forcing this action by the Government. So, in the present circumstances of substantial budget deficits and with no evidence of any long-term change in government revenues to finance big increases in public servants' pay packets, there is justification in the Government holding its ground on this issue. The Government however can demonstrate true solidarity with the population by agreeing to a ten per cent cut in the salary of all ministers with immediate effect, which in the circumstances will give it the moral high ground in the deliberations with the unions.
C Rodriguez
Petit Valley