The Guyana Public Service Union (GPSU) says the National Budget is anti-working class as workers have been treated to a mere $5,000 per month increase in the tax threshold in a budget of $161.4 billion.
In a press release the GPSU said the $5,000 increase “translates to an increased purchasing power of $1,250 weekly or $56 daily – less than the price of a loaf of bread.” This take-home pay would also be lessened by inflation, hikes in NIS and further diminished by VAT. Also, many workers would not benefit from “this so called ‘generosity’” since the majority of public servants who are numbered among the employed poor, earn less than $35,000 per month.
The GPSU notes that the increase in the threshold, coming as it did three years after it was last increased in 2008, is still below what it should be, that is $485,000 when inflation for the past three years is taken into account. The union noted that as far back as 2009, government acknowledged that the minimum wage should be $50,000 per month since it used that figure as the cut-off for the payment of the cost-of-living allowance of $4,000 per month.
Moreover, the union noted that this year the government announced a reduction in the rates of company income tax for commercial and non-commercial companies, except for telecommunications companies, but it has not simultaneously reduced the rate of individual income tax which is kept at 33 1/3%. According to the GPSU the provision for the revision of wages and salaries for the year was set at $3.461B which is about 15% of the wages and salaries budget of $23.080 billion. “We know from previous experience that that increase will not be paid to public servants since all manner of expenditure is met from the category ‘revision of wages and salaries’” it said.
The GPSU recalled that in 2010 government said that it could not pay more to public servants because of the state of the economy even though the economy grew by 3.6% and showed substantial growth in revenues, exports and Bank of Guyana reserves.
However, the release said, the government made disbursements totalling $400 million to members of the disciplined services in the form of bonuses and unbudgeted payments amounting to $700 million for Guysuco workers.
The GPSU also condemns the “across the board” methodology used for paying workers between different scales and the non-payment of increments. It said government has created a situation where new entrants receive the same salary as experienced workers in the same pay scale.
While the union recognises that other non-monetary incentives are important, monetary incentives remain the most important factor that sets the basis for employee motivation, enhancement of employee efficiency and effectiveness and ultimately the achievement of organisational goals.
Contracted employees
“The Budget further showed a marked increase in contracted employees’ wages/salaries by 9.5%, moving from $4.65 billion in 2010 to $5.14 billion in 2011,” the GPSU said, adding that it believes that government is not keen on motivating public servants but clandestinely seeks to shed them through tactics such as increasing the number of contract employees, contracting out services to friends by highly contentious practices, demoralisation and intimidation.
The union is again inviting government to engage in meaningful discussions, noting that it has consistently called for an all-embracing, long-term wage agreement that would obviate the need for yearly negotiations and ensure a predictable, transparent formula for increasing wages and salaries.
As regard public service reform, the budget has not indicated that this matter is a priority for government; in fact, there is no functional public service reform programme in operation. The last Public Service Reform Programme came to an abrupt end in 2008, a fact the union highlighted recently.
The GPSU remains puzzled by claims that the budget is for ordinary people when it is akin to a declaration of war on traditional public service workers. As such, it said that a massive struggle for a fair and equitable sum for public servants will be launched.
