Private sector employers should not be expected to meet the level of public sector salary increases, says Executive Director of the Barbados Employers Confederation (BEC), Sheena Mayers-Granville.
Furthermore, she is sounding a caution about the importance of balancing salary increases and employment levels.
Mayers-Granville said while she could not say how much any wage increase for public servants should be, it would not be fair to expect an equivalent increase in the private sector.
“Salary negotiations involve various considerations and some of the main factors include: the ability to pay and inflation. It is no secret that we have been battling high rates of inflation, but also note that our economy is not at pre-COVID (2019) levels and, therefore, ability to pay is a real consideration.
“I cannot comment on the amount that should be granted to public servants, however I will highlight that private sector wage negotiations should not be paralleled with government’s, unless in the case of industry negotiations such as the hotel sector, where each company enters its negotiations individually and the outcome is based on the situation at that company,” Mayers-Granville pointed out.
Last Friday during a press conference, president of the Democratic Labour Party (DLP), Dr Ronnie Yearwood called for Government to grant public servants a salary increase of between five to seven per cent which he suggested was possible based on “calculations”.
Additionally, both the island’s largest public sector union, the National Union of Public Workers (NUPW) and the umbrella body, the Congress of Trade Unions and Staff Associations of Barbados (CTUSAB) have implored Government to grant an increase to public workers to assist them with the rising cost of living.
In response to questions from Barbados TODAY, Mayers-Granville stoutly defended employers, saying in most instances wage hikes were given to employees once companies could afford them.
“Overwhelmingly at the BEC we see that once companies can afford increases, they have been granted year-on-year to employees. In the private sector, where affordable, many employees have received an average increase of 1.5 per cent to 2.5 per cent per year. The result is that over the course of 12 years an employee may have received approximately 20 per cent to 30 per cent increase in pay.
“The private sector is now faced with COVID recovery in the face of high inflation on inputs. Increases as high as 200 per cent on some raw materials have been reported. In the face of this, many companies continue to try to absorb costs wherever possible, while maintaining jobs.
“Therefore, serious consideration must be given to maintaining the balance between salary increases, price increases and employment levels. Therefore, individual company negotiations will have to consider such,” Mayers-Granville said.
randybennett@barbadostoday.bb
