Finance Minister Colm Imbert has revealed that wages in the public sector amount to $19 billion a year, which he said amounts to 40 per cent of the country’s estimated annual revenue.
Imbert made the announcement in a post on his Twitter page yesterday, following calls by trade unions for a shutdown of the country over a two per cent wage increase offer by Chief Personnel Officer Dr Daryl Dindial for the period 2014 to 2021.
Former finance minister Winston Dookeran is validating Imbert’s comments on this country’s wage bill.
Dookeran told Guardian Media, “I do not recollect the numbers but it has always been an issue for some time now.”
Dookeran believes the time has come for a wage policy to be developed in this country.
“We are now at the very beginning of a return to some kind of uphill road, but there is still a lot that has to be achieved. So in that context, I would think wage restraint would be a necessary requirement for macroeconomic growth and stability,” he explained.
However, he added that the wage restraint must be linked to a credible strategy for expanding the growth process.
Commenting on the argument that inflation has increased over the eight years, Dookeran said, “It is wrong to say because inflation goes up wages must go up, because when that happens it is a cycle that goes on and on. What has to go up is growth, when growth increases then income increases then wages must increase.”
He said while he understands that higher wages are desirable, it is just not currently affordable.
Dookeran recounted that when he was finance minister from 2010 to 2012, he proposed a five per cent wage increase for public sector workers but was overruled by the People’s Partnership Cabinet.
Winston Dookeran
NICOLE DRAYTON
“And in my view, we paid a heavy price because it was all those things that led eventually to the collapse of Petrotrin,” he said.
Dookeran, who recently wrote a book entitled The Caribbean on the Edge, told the Government and trade unions, “Sometimes you have to have tears today in order to have applause tomorrow, or you wish to have applause today and you will have tears tomorrow.”
Notwithstanding this, the unions under the National Trade Union Centre (NATUC) umbrella are gearing up for a protest against the two per cent offer on Friday.
NATUC general secretary James Lambert yesterday questioned why money is being used to pay VAT refunds.
“But you don’t have the time to sit down and say that the worker really works hard boy (sic), the work in COVID-19, they were on the frontline; the police officers, the nurse, the doctors, the port workers, the workers at WASA, the workers at T&TEC, they stood up and kept this economy going, it wasn’t the Parliamentarians and now for them to get something you offer them two per cent?” he asked.
Annisette said, however, that the unions are willing to come up with proposals to reduce the burden of an upfront payment of backpay to workers and this will be put in writing soon and delivered to the Government.
He said one such proposal could be using a public servant’s backpay as a downpayment on a house from the Housing Development Corporation.
