FITUG yesterday voiced qualms about the inflationary trend eating into workers’ earnings and while recognizing the 8% salary increase announced by the government for public servants, the trade union grouping said that some of the other measures intended to accompany the hike may not have reached their intended beneficiaries.
In a statement, the Federation of Independent Trade Unions of Guyana (FITUG) adverted to President Irfaan Ali’s announcement last week of an eight percent across-the-board hike for public servants.
“… the President contextualized the eight (8) percent pay rise to State employees within the framework of other measures approved by his government since coming into office. Indeed, we have taken note of those measures and we believe they were undoubtedly aimed at improving the lives and well-being of our ordinary people. This has not escaped our attention and kudos where appropriate. We, however, have shared the view that we do not believe that every measure reached the intended beneficiaries – the ordinary people”, FITUG said.
It added that this calls into question the axiom of trickle-down economics which has attracted some criticism in recent years.
FITUG – whose main constituent has had close ties with the current government – applauded the administration for proactive measures to ease the impact of exogenous factors on the cost of living. It however expressed concerns about inflation.
“Despite the proactiveness of the Administration to ease the situation, we have recognised the Ministry of Finance 2022 Mid-Year report informing that inflation up to June 2022 stood at 4.9 percent. More recent data from the Bureau of Statistics recorded that inflation had risen to 6.5 percent up to the end of September 2022. Should this trend remain consistent then there is a real fear that in spite of the improvement granted workers may see a regression in their real earnings. We are certainly hopeful this is not the case and more updated data will (allow) us to draw an informed view”, FITUG stated.
Noting statements juxtaposing the 8% increase within the context of long-term sustainability, FITUG said that such contentions cannot be discounted and added that data to provide a greater understanding would be helpful.
“Given the deficits in health, education, housing, and infrastructure to name a few it is difficult to argue with such contentions. While certainly there is always a need to keep an eye on the future, we recognize too that we should not ignore our present-day circumstances. They have implications for the future as well and, we believe, there is an undoubted need to ensure that we promote efforts to ensure egalitarianism in our society”, FITUG contended.
On the need to uphold free collective bargaining, FITUG said that every effort should be made to involve the representatives of workers.
“We believe in an atmosphere of respectful, frank and mature discussions much could be accomplished across the table. We are conscious such suggestions may evoke strong responses but given the stage of our development, the involvement of all is critical to our long-term success as a nation and people”, FITUG said.
The PPP/C government has been strongly condemned for disregarding collective bargaining over the 27 months that it has been in office. It has made unilateral announcements of three wage increases over the period.
Noting that President Ali has signalled that further steps are in the offing to address the earnings of lower-earning public servants, FITUG said “These are credible measures which can go a long way. We nonetheless hold the view collaboration with all stakeholders can lend to credible outcomes in the interest of all Guyanese. In this regard, the pay rise announcement, we hold, as a first step to addressing some of the challenges the workers face”.
