Barbados: Stuart administration to reduce size of gov’t in bid to revive ailing economy

The head of the Barbados Institute of Chartered Accountants (ICAB) says that the Freundel Stuart administration Barbados government delayed in making a decision regarding the laying off of 3,000 public workers in a bid to revive an ailing economy.

The island-nation’s Finance and Economic Affairs Minister, Christopher Sinckler announced earlier this week that the Stuart administration would trim the public service by as much as 3,000 in 2014, and that government ministers, government legislators as well as parliamentary secretaries and those considered to be a “political appointee”, would face a 10 percent pay cut.

Sinckler said that the plan to cut public service jobs would result in the government saving as much as BD$143 million (US$ 71.5 million) and that the government had also agreed to institute a “strict program of attrition” across the central public service, filling posts only where it is absolutely unavoidable, over the next five years, ending 2018-2019.

According to the ICAB president David Simpson, in addition to the impeding job cuts, the administration would still have to outline a plan to stimulate foreign exchange earnings and improve the economy.

The highest level of government expenditure is in wages and salaries in central government and transfers and subsidies in statutory corporations. It has become inevitable to reduce costs, which would justify a reduction in the size of the public sector.

Meanwhile, there is concern that the labor unions, especially the National Union of Public Workers (NUPW), have not made public statements regarding the impending job cuts.

According to sources, union officials are reported to have met on Saturday to discuss the matter but the officials remained silent on the position of the union.

The attrition is expected to reduce government employment levels from approximately 16 970 to 14, 612 jobs – a projected loss of 2 358 posts; and savings of BD$121 million (US$60.5 million).

It is anticipated that the public sector will be reduced by an additional 501 jobs with a projected savings of BD$26 million (US$13 million) during the current 19 month adjustment period.