A trade union leader is calling on public sector workers to go on strike over Government’s proposed Debt Settlement (Arrears) Act 2021 that he insists could severely disadvantage them.
Describing the legislation as “shocking, shameful and unconscionable” Leader of the Unity Workers’ Union (UWU) Senator Caswell Franklyn said civil servants had to send a clear signal to the Mia Mottley administration.
The Act, 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”.
Franklyn charged that under the legislation, civil servants could end up having to accept payments owed to them by the Government in these bonds, rather than cash.
“This is time for a general strike. No civil servant after reading about this should turn up for work until that Government is gone. Unfortunately, I can’t call them out because I don’t have all the civil servants, but this is not even political now. You cannot treat people like this,” the outspoken Senator told Barbados TODAY during a telephone interview.
“I thought that the Government was bad, and I have been saying so for a long time, but it is worse than I’ve been saying and it is about time the people in this country stand up to them and get rid of them.
“This is something that the Government should fall for…. It is shameful to think that a government would do this to its people,” he added.
Franklyn’s criticism of the legislation comes on the heels of similar concerns expressed by President of the Democratic Labour Party (DLP) Verla DePeiza and Deputy General Secretary of the National Union of Public Workers (NUPW) Richard Green.
According to the Schedule of the Act, its purpose is to provide for the creation and issuance of the Series J Bonds 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.
Franklyn, who charged that the legislation was being “fast-tracked”, warned that it could alter the terms and conditions of public servants – a contention previously expressed by Green.
While Minister in the Ministry of Finance Ryan Straughn told Barbados TODAY on Thursday that was not the case, the UWU leader was adamant that the legislation “speaks to any liability of any kind” and therefore civil servants could be impacted.
“The gratuity of public servants is a liability to the Government and the Government has taken that power on to themselves. If they don’t intend to use it, why did they put it in the legislation? If you didn’t want it, why did you take that power?” he questioned.
Franklyn insisted that, if passed, the legislation would also give Government the power to pay salaries in bonds. Additionally, he said, retired public servants looking forward to using their gratuities to pay off their bills could end up disappointed.
“When you are getting that lump sum, people plan for it. Most people pay off all their outstanding liabilities so they don’t owe anybody anything, and then live off of your pension. Now, if they take that money from you and they do not pay you anything, you will now be living and paying your mortgage and doing everything else with your pension, which is half of your salary.
“Most civil servants don’t have anything to save right now because of the cost of living and so on, so you will now be on a reduced income of half of what you normally take home. And if people are not making it now on the full salary they are not going to make it on the half,” Franklyn argued.
Under the Schedule of the Debt Settlement (Arrears) Act 2021, the Series J bonds have a maturity period of 42 months and require that the principal be paid over 42 equal installments with no interest earned.
It also includes a natural disaster clause that would allow Government to further delay the repayment on the bonds.
Minister Straughn has insisted that the legislation would simply allow Government to clear debts for land acquired by previous administrations over the years, similar to the Series F bonds created in 2018 to clear $1.9 billion in arrears.
“What we have just done has nothing to do with changing the terms and conditions of anything for public servants; nothing at all,” he told Barbados TODAY on Thursday.
(randybennett@barbadostoday.bb)
