Unions insist on possible ‘double-digit’ increases, despite caution from Central Bank Governor

The island’s umbrella trade union body and a major teacher’s union are adamant that public officers must be given salary and wage increases this year, despite the Central Bank’s recommendation that a raise in pay shouldn’t be based on the rising cost of living.                                           During his second-quarter economic review Press conference on Wednesday, Governor Cleviston Haynes declared he would not recommend public officers pursue salary increases as a means of tackling high prices.

Haynes said the Government would have to make some very difficult choices in order to be able to facilitate an increase in wages.                     “Trying to chase prices through wage increases, I think, most economists would tell you that is not really a good idea. What the Government has tried to do which is perhaps more recommended, is try to be more targeted in some of the relief it provides to those who are going to be most impacted by what we hope, is a temporary rise in the cost of living,” he asserted.

“In other words, eventually, we hope that oil prices would start to taper off, which means that transportation costs, electricity costs and so on will start to come down. What is happening as it relates to food, that will also begin to repair itself, not necessarily in 2022, but hopefully in the near future,” the Central Bank chief pointed out.

But in a robust response to Haynes’ recommendation, the Barbados Union of Teachers (BUT) has insisted that far from not pursuing an increase, the union wants to start at a low, double-digit percentage salary and wages hike in order to make up, at least, for a four-year erosion of teachers’ spending power since 2018.

“The Central Bank Governor should remember that the public officers in Barbados did not have salary increases for that period between 2008 and 2018. In 2018, there was just that one-off five per cent payment. I am sure that in that period between 2008 and 2018, there was the serious erosion of the salaries. That was also a difficult period when we had some economic challenges across the world as well,” BUT General Secretary Herbert Gittens told Barbados TODAY.

“We have seen the tremendous rise in prices since COVID. Everything has gone up right across the world, and while the relief is coming, we have to go way beyond that because that is not all. Workers have been giving back tremendously in this country. We are actually now operating at a 2018 salary in 2022, when prices have skyrocketed and prices are high. Energy prices have gone up significantly. So, we believe that more has to be done to bring workers in line with what is happening economically in the country. I think the time is ripe, really, for Government to sit with the unions to have a discussion about salary increases and wage increases in this country, including the hard-working public officers in Barbados,” Gittens argued.

However, Governor Haynes urged the public sector to be careful not to try to apply “a balm” to what may be a ‘temporary’ situation.

“Obviously, temporary shocks can get built in and become permanent,” Haynes said, “but the solution off the top is not necessarily to be addressed through wage increases. And to facilitate, remember you don’t have more money when you decide to grant a wage increase, and therefore, there have to be choices as to what other things you would want to go without,” the top economist cautioned.

“From an expenditure side, sometimes it’s cast in what taxes you are prepared to pay in order to facilitate it…because at the end of the day, the Government does not necessarily have more funds available to it, and therefore in order for it to balance its needs…and earlier we talked about debt…and you don’t want to increase more debt, so, therefore, you have to look at the composition of your expenditure,” he suggested.            “And therefore I don’t think that trying to pursue prices with wages would be a solution that is sustainable or that would be recommended,” the Central Bank head warned.

The BUT official disclosed however, that as a basis for the pending negotiations with the Government, the BUT had commissioned an economic study last year which was conducted by Economics Professor Emeritus and Pro Vice-Chancellor of the University of the West Indies, Cave Hill Campus, Dr Andrew Downes.

“Since then we have seen some further erosions in the country with the Ukraine war and the high rise in prices. We probably have to get that updated, which we intend to do, because when the negotiations start through CTUSAB [Congress of Trade Unions and Staff Associations of Barbados] we want to be well-armed using the information that would help us to carry a good argument to the Government for a possible increase,” Gittens noted.

“So we will be looking to cover the period ‘19/’20 – 2021 and then now. We always negotiate ahead, so we are looking for something for 2021-2022/2023. So it’s like a four-year span of no salary increases. That seems to me to suggest that we would have to be talking about a double-digit figure. Around the early double-digits would be a good point to start. The Barbados Light and Power is asking for a rate increase and they may get it, so all of these things will impact the spending power of workers,” the union general secretary argued.                                              

Meantime, the umbrella CTUSAB is also contending that pay increases are more than justified at this time when local and international factors have driven up the cost of living pushing workers to a point of economic deprivation.

“One has to be realistic in the scheme of things. At this point in time, with high inflationary rates and all other factors that are impinging from an external point of view, you cannot reasonably expect that people can survive in a situation where they are already at a point of economic deprivation,” CTUSAB General Secretary Dennis DePeiza told Barbados TODAY.

“If there has to be an adjustment, some adjustment has to take place at the table where negotiations are held. By that I am virtually saying that the Congress is not going to be involved in any public negotiation on this matter,” DePeiza said.                                                                    

“We would submit our proposals and look at the overall circumstances and obviously being mindful of the prevailing circumstances, but also at what is required in order to make a difference in the lives of people at this time,” he maintained.

emmanueljoseph@barbadostoday.bb