Prime Minister Dr Keith Rowley has called on public servants to not overreact and not shut down the country over a two per cent offer by the Chief Personnel Officer for the last eight years.
The call for a shutdown had been made by trade unions.
Speaking to the media on his return from Guyana yesterday, Dr Rowley said it was not financially feasible to give employees more than what is being offered, even in the face of the unexpected improvement in the country’s economic standing.
“Try and not get derailed by wanting more from less. We have a little bit more now and therefore a little bit more can provide a little bit more. A little bit more can’t provide all that you require,” he said.
“We would love to give the public servants as much as they can expect but it has to be tempered by what reality is.”
Based on the information provided by the Minister of Finance, Dr Rowley broke down the cost to the state to settle the negotiations.
At the current offer, he said it will cost the state over $1 billion added to the current $8.7 billion public servant wage bill.
“At a two per cent increase covering the period... going back to 2014 to 2020... would see an additional cost on the recurring of $175 million. That’s only on salary and wage in COLA. A billion dollars and that’s the backpay and then a monthly increase in $411 million going forward,” he said.
At a four per cent increase, back pay will cost $1.8 billion and a running cost increase of $588 million.
“And if you hear anybody talking about 10 and 15 per cent, right? At 10 per cent we’ll be talking about a back pay of $4.5 billion and an increased running cost of $1.1 billion,” he said.
“Now you put that against the recent report of a slight increase in the revenues from the Minister of Finance against the background of the huge debt that we had run up for COVID and pre-COVID, put them all together and then you come to a conclusion as to whether shutting down the country or not is the appropriate response to these circumstances.”
He also said the current high price of oil should not influence people’s demand for a larger increase in salaries.
“Do not for one minute be guided by the fact that oil price is $100 (USD per barrel) because the oil market, overnight, could change and therefore if we commit ourselves to making payment based on what prevails now and in three months, or two months or six months the price drops to $60 or $50 we would have worsened our position,” he said.
“Reason is required and patience is an essential ingredient. I think you would want us to continue keeping people in jobs. You would want us to continue looking for the opportunity to provide you with an improved payment but let us not get too carried away on this,” Dr Rowley said.