Breaking News: Five% wage hike for public servants

The Government today approved a five percent across-the-board salary increase for all public servants and members of the disciplined services with effect from January 1, 2010. The  increase will also be paid to all Government pensioners, the Government Information Agency said last night.
Teachers, who were previously paid a five percent increase from January 2010 in accordance with their 2006-2010 multiyear agreement, will be paid an additional one percent in lieu of the performance incentive contemplated by that pact, GINA said. That agreement is now in its final year of implementation.
This decision is against the background of a year in which countries across the Caribbean and beyond have been confronting severe fiscal challenges, GINA said. These challenges have led to  job losses, wage freezes, and even voluntary wage cuts to save jobs.
`In Guyana, the Government has continued to implement prudent macroeconomic policies aimed at protecting the stability of the economy, and ensuring that worker interests are protected.
Instructions are being issued to the relevant officials in the Ministries to ensure that steps are taken to process the payout as soon as possible”, GINA said.

In the last seven or eight years, the government has imposed wage increases after declaring failure of talks with the public service unions.

Towards the end of November, the Guyana Public Service Union (GPSU)  expressed grave concern over the delay by government in commencing negotiations on  increases in wages/salaries and allowances for public service workers, saying it was causing  “severe discomfort” and has “incalculable implications” for them and the well-being of their families.

The union also expressed concerns about “the erosion of the purchasing power of public employees in all agencies” and contended that “a matter of such fundamental importance should be addressed immediately to secure adequate increases in wages/salaries  and allowances.”

The union stated that it had submitted a multi-year proposal (three years)  on June 1, 2007 to the government for increases  in wages/salaries for the years 2007-2009, but negotiations were never concluded.

Again on September 9, 2009 proposals were submitted  for increases for the years 2010, 2011 and 2012.

The union also submitted a compilation of a basket of necessities which was used as the basis for determining the criteria for the minimum salary for a public service worker.

Consequently, the union represented and reached agreement with the permanent secretary, Office of the President,  to commence negotiations for increases in wages/salaries and allowances for 2010 from October 27. Other dates were also scheduled for these negotiations (November 1, 8 and 11)  but to date no meeting had been convened, the release stated.