President of the Chaguanas Chamber of Industry and Commerce Billy Ali feels before the Chief Personnel Officer and union leaders negotiate fresh wages for public servants a performance appraisal system should be instituted.
Ali: Do performance appraisals
"It makes no sense increasing salaries when some public servants go beyond the call of duty, while others do little or nothing but get the same salary. This has to change. A performance appraisal system is needed." Ali, the managing director of Bankers Insurance, was giving his views on the failed discussion between union leaders and Prime Minister Kamla Persad-Bissessar over wage negotiations last Tuesday. Asked if he felt Government could afford more than five per cent, Ali said only Persad-Bissessar and Finance Minister Winston Dookeran can determine that. "They alone will know where the revenue will come from." He noted that since the worldwide financial crash in 2008, the T&T economy had become stagnant, with some companies cutting back on wages, goods and employees.
Drop in growth of businesses
Ali said this looming strike will only contribute to a further drop in growth of local businesses.
"If the Government knows that they cannot afford to commit to more than the five per cent they need to communicate clearly to the public, and if possible come up with short and long-term plans with the unions." A short-term plan, Ali said, can be put in place by setting a scale or table of growth for the economy and businesses for the next fiscal year and beyond. "Then, and only then, we will be able to see if the Government can afford the increase based on those growth rates that were preset. "If we are going to increase people's salaries we ought to know if we can afford it."
Ali drew reference to President Barack Obama, who is faced with the dilemma of whether to increase taxes or cut back on expenses as the United States battle with a challenging economy. "If we look at the US financial standings we will see how frightening it is. Let us not find ourselves in that same position." Ali said if we constantly increase expenses we must know where our revenues will come from. The businessman said if Government were to give public servants the 15 per cent that they are demanding, it could lead to an increase in overall taxes and cutting of social programmes, which could have a negative national impact. He suggested that another area in which Government could raise money was by taxing individuals who earned a monthly $5,000 and below. This, he added, will be a devastating blow to the small man.
Feelings of uncertainty in 'Grande'
Kenneth Boodhu, interim president of the Sangre Grande Chamber of Commerce, meanwhile, said if the unions strike it will bring businesses to its knees. In the last two weeks, Boodhu said, its 500 businesses in Sangre Grande have been rejecting students who come for summer jobs because "there is a feeling of uncertainty hanging over us with this looming strike". One of the measures they have taken, he said, "is not to employee anyone for the next few weeks". Boodhu said that normally, 1,500 students get temporary jobs every year in Sangre Grande. Boodhu said the general feeling of business owners and even the farming community was one of worry. Though businesses were beginning to pick up in the last year, Boodhu said there was a lack of confidence especially with foreign investors. "I feel the entire country will suffer an economic depression." Praying for good sense to prevail, Boodhu feels Government can offer seven or eight per cent, which may put some strain on the economy but not exasperate the problem.
Economist: Not a good signal to investors
Unable to say if the Government is in a position to increase public servants wages, economist Indera Sagewan-Alli said this could only be determined by the state of the economy. "If revenues from productive sectors and royalties from the oil and gas sectors are not sufficient to meet the demands, the Government will have to find a way," she explained. "It is also a consideration for Government to look to the tax that charges everyone across the board. The Government can give with one hand and take back with the other. At the end of the day, the bill has to be paid at any cost necessary." However, Sagewan-Alli said if public servants were to strike, it could lead to a long-term or one-day strike.
"So far it has been protracted, so the industrial unrest characterises the economy of Trinidad and Tobago. At this point in time is a very negative factor for business activity." Sagewan-Alli said the unrest could also affect the decision of foreign investors who will be looking to the country for stability. "That is not a good signal to them." With regards to the negotiations, Sagewan-Alli appealed to union leaders and the Government to think outside the box. "Clearly, the boom is over and our economy is not in a strong position as it was a few years. The outlook in the short to medium-term does not look very good." Sagewan-Alli said the union and the Government needs to move the conversation away from the wage rate to the issue of living standards. "It needs to explore the whole baskets of alternative measures brought to the table."
