No settlement reached with unions yet – PM

Government is seeking to set up a Negotiations Committee to hold further discussions and negotiations with unions that represent government workers in St Vincent and the Grenadines (SVG).

Stewart Haynes, Executive Director of the National Insurance Services made a presentation on Pension Reform

This is one of the outcomes of a meeting between government and public sector unions on Thursday, September 8.

The meeting, which lasted almost five hours was attended by representatives of the St Vincent and the Grenadines Teachers Union (SVGTU), Public Service Union, Nurses Association, Police Welfare Association, Commercial Technical and Allied Workers Union (CTAWU), National Workers Movement (NWM) and Minister of Labour Saboto Caesar.

Two nurses’ representatives

In a post meeting interview with SEARCHLIGHT, Prime Minister Dr Ralph Gonsalves said that no settlement had been reached during Thursday’s meeting.

“While there was no settlement of the matters, I think there was a broad understanding on both sides.

“We will have a negotiating committee set up for further discussions on the matters raised,” Gonsalves stated.

Oswald Robinson, President of the SVG Teachers Union making a point at the meeting

He added that during the meeting, Executive Director of the National Insurance Services, Stewart Haynes made a presentation on Pension Reform.

Other matters discussed were: taxation, the economy and salaries.

Minister of Finance, Camillo Gonsalves; Director General of Finance and Planning, Edmond Jackson; Budget Director, Ken Morris; Senior Economist, Denece Pompey-Gilkes; and Advisor on Pension Reform, Maurice Edwards were also present at yesterday’s meeting.

The Prime Minister further disclosed that government has offered to pay to make available to the unions, the services of an actuary, who would give the unions independent advice on all issues.

Gonsalves said he does not want the present discussions with the unions “to be a fight.”

“There is a question about the protection of retirement benefits for people, now and in the future.”

On the issue of salaries, Gonsalves said the unions want an increase for the years 2022 and 2023.

Government is offering an increase for the years 2023, 2024 and 2025.

The prime minister said on Thursday that no quantum has been agreed on, in terms of the rate of the proposed salary increase.

Responding to the union’s request for a retroactive increase this year, Gonsalves asked, “how can you expect an increase in 2022?”

In 2020, the unions got a two per cent salary increase for their members, which was previously agreed upon.

With the onset of the coronavirus pandemic in 2020, the economy contracted by 5.3 per cent.

The International Monetary Fund has projected growth of 5 per cent for 2022, which would take SVG back to the 2019 GDP level.

Speaking on NBC Radio on Wednesday September 7, Gonsalves said the unions had sent a letter to the Minister of Finance on August 17 in which they asked for a 10 per cent increase for 2022 and 2023.

He said the workers’ organizations are also asking for a temporary reduction of the Value Added Tax from 16 per cent to 10 per cent.

Gonsalves however queried that if this is done, how will the Government be able to pay the $30 million monthly bill for salaries and pensions.

On Wednesday, the Prime Minister announced on radio that “the government will deliver a salary increase for the public servants, and we want to do it for 2023, 2024 and 2025.”

He however cautioned, “we have to do things reasonably.”