Unrealistic demand

The Public Services Association (PSA), which is demanding a 45 percent increase for public officers, should seriously take into account as it negotiates with the Chief Personnel Officer the reality that the 2003-2004 Budget, which will be based on an estimated price of crude, will be under siege should the United States sharply increase Iraqi oil production, as expected.

Also, escalation of the globalisation process, including the planned establishment by 2005 of the Free Trade Area of the Americas (FTAA), of which this country, along with other CARICOM States, will be a part, may well have adverse economic effects for our region which could result in a period of uncertainty, falling revenues and require belt-tightening adjustment. In turn, our exports to CARICOM, this country’s second largest export market after the United States, will slide, largely because of CARICOM’s declining ability to purchase TT’s goods and services as a result of a drop in employment and a consequent reduction of the turn around of money within their economies. Another negative factor, which will impact adversely on this country’s exports to other CARICOM States, will be their increased imports of United States goods, as well as those of US owned companies in Mexico and Central America with the advent of the FTAA.

The PSA should take into account during bargaining that should Government agree to an uncomfortable salary increase, this would encourage trade unions in the private sector to trump and follow suit, with the real risk of many of the country’s small manufacturers becoming uncompetitive even in the domestic market. The Public Services Association has to adopt a realistic posture, as any uncompromising position at the bargaining table can have ramifications which can go well beyond the mere question of public servants’ salaries. Already government’s wage bill accounts for a large percentage of its recurrent expenditure and the demand for such an increase must be seen as unrealistic, having regard to the urgent developmental needs of the country.

The PSA should have another look at the question of the introduction of a contributory pension plan for its members. The issue of a contributory pension plan was first raised several years ago by Government, but somehow became bogged down. Such a plan, as opposed to the non-contributory pension plan as at present, can lead to enhanced pension benefits to public servants as in other countries, Canada for example. All that would be needed will be the required legislation. A contributory pension plan for public officers, beginning with those employed today, will within a few years relieve Government of the need to fund their pensions, when the officers retire. In turn, this will place the PSA in a stronger position to demand better salaries, which eventually will mean better pensions for today’s officers, and enhanced pension benefits for already retired public servants and what have you as well. The same will hold true for teachers and members of the Protective Services and for retirees from the respective areas of the public sector. All of this will not only be of no additional cost to Government, but rather will reduce the cost of the public service to taxpayers.