Dear Editor,
Reference is made to editorial “Public servants’ 7%”. I fully support any argument that government must negotiate in good faith with the union leadership for fair wage and working conditions. I also am of the view that wage increases must keep pace with inflation so that the working class does not suffer from a loss of purchasing power. Government workers deserve an increase as they were denied a fair wage increment tied to inflation under the preceding coalition. Wage increases create their own problems — inflationary pressures on the economy leading to demand for further wage increases is a never ending cycle. Is the 7% fair? Can government afford it or more? Should wage increment be tied to productivity and inflation?
The Guyana government’s offer of 7% increase is significant’ in no part of the globe have workers gotten such a high increase. And it is significantly higher than the reported inflation of 5.6% as of end of October. Thus, it will result in a real increase in wages since it is higher than current inflation. Since inflation is transitory, going up and down and should it decrease, workers would benefit enormously if inflation stays at or below 7%. It is noted that the 7% increase in salary is on top of bonus grants given last year to various sections of the public service. Aside from the bonuses and 7%, government provides various subsidies on fuel, utilities, etc. These are savings to the working class resulting in availability of money to spend on other items.
Since public servants get 7%, other state workers would expect similar increase. Sugar workers, educators, and other government employees should also get 7% for 2021. There are legitimate reasons to give government workers a 7% increase. Settling government employee wages are not the only issue facing any government. The current administration also needs to allocate funds to rebuild neglected infrastructure which will put the network in place to increase workers’ and business productivity. If government does not pay heed to infrastructure and those who’s labour generate income and pay taxes, then the requisite revenues from increased productivity would not be forthcoming to meet union demands for wage increases.
Sincerely,
Vishnu Bisram
