After weeks of back and forth negotiations, the Barrow Administration is finally in agreement with the Unions on the increment that the Government cannot pay to public officers because the country's economy is in meltdown.
After the financial Secretary proposed that public servants needed to forego their increment to meet those savings, the Public Service Union immediately resisted and insisted that the increment should be deferred instead - meaning, "pay us later."
Well, a circular from the Ministry of Finance today indicates that the two sides are agreeing that the increment will be foregone with the possibility of reinstatement after the country's economy rebounds several years from now.
The memo, from the desk of Financial Secretary, says quote, "The Government… restates its position that the increment will be foregone until retirement with the understanding that if and when the economic circumstances of the Government improve significantly at a future date, the Government has committed to entertaining a re-examination of the position" End quote.
The FinSec's memo then ends by saying quote, "The Government also wishes to clarify that the approval granted by Cabinet for the quantum of the Foregone annual salary increment to be included in the calculation of pensionable emoluments would also extend to those officers (including teachers) who leave the service prior to the age of 55… and otherwise, qualify for benefits under the existing Pension Act." End quote.
Up until the start of the newscast, the Public Service Union's President and 1st Vice President were holding a sort of zoom teleconference meeting on Facebook to discuss public spending and their positions on it.
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