BWU accepts reason for debt settlement legislation but wants language changed

While one trade union leader has called for strike action over Government’s Debt Settlement (Arrears) Bill, the Barbados Workers’ Union (BWU) has taken a different approach, saying it has asked that the language in the legislation be changed to ensure the salaries of public servants will not be affected.

The island’s largest trade union, in a statement, said it had no doubt about the intention of the legislation – to settle more than $300 million in compensation payable by the state for land it has acquired.

The Debt Settlement (Arrears) Bill, which was passed in the House of Assembly, facilitates the creation and issuance of Series J bonds to allow Government to settle its obligations and liabilities “due to certain persons”.

According to the Schedule of the Bill, the purpose of the legislation is to settle: obligations to persons whose lands were acquired under the Land Acquisition Act, Cap. 228 before September 30, 2018; obligations to persons in respect of causes or legal claims instituted against the Crown before September 30, 2018; and Barbados denominated arrears incurred or assumed by the Crown before September 30, 2018.

“While salaries, gratuities and the like were never intended to be subject to the provisions as outlined in the Bill, it is easily understood why concerns have emerged, especially since within the public sector, notwithstanding commitments and obligations to keep these current, there is often a lag, particularly for temporary employees,” the BWU said in its statement.

“Even where employees are permanent, as is the case with the Customs, the experience has been that allowances and overtime payments can lag for up to a year in some instances.”

The BWU said framing the legislation in terms that are too broad potentially exposes individuals, especially where a payment not made immediately has the automatic effect of becoming a debt owed.

It added that, like other unions, it has sought to have the language modified for the avoidance of doubt and to allay fears.

The BWU said the other aspect of the legislation which its Executive Council hopes Government will clarify is the fact that bonds are not mandatory or forced, “but will remain an option where an individual to whom an outstanding sum is owed, opts for settlement in bonds”.

“Experience has also shown that individuals may choose to receive their settlement under a bonds arrangement instead, to avoid any unfortunate delays in waiting for their payment in cash,” it noted.

The statement issued by the BWU came on the heels of leader of the Unity Workers’ Union, Senator Caswell Franklyn calling on public sector workers to go on strike, insisting that the legislation could severely disadvantage them.

He charged that the Act would give Government the power to pay money owed to public servants, including salaries and gratuities, in bonds rather than cash.

Previously, Deputy General Secretary of the National Union of Public Workers (NUPW) Richard Green and President of the Democratic Labour Party (DLP) Verla DePeiza had also expressed concern about the impact the legislation could have on public servants.
anestahenry@barbadostoday.bb