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St. Lucia: Anthony administration will not legislate public sector wage cuts
The St. Lucia government says it has no intention of legislating a wage cut for public sector employees and that retrenchment is not an option being considered as it seeks ways to reduce expenditure.
According the country’s Public Service, Information and Broadcasting Minister, James Fletcher, the Kenny Anthony administration is holding talks with the public sector unions on finding ways to reduce expenditure and that wage reduction has also not been finalized.
Responding to concerns raised by opposition legislators during the recent debate on the 2014-15 national budget, Fletcher said there is no need for undue panic.
“The government of St. Lucia is in negotiations with the public sector unions. Nothing has been decided on. Nothing has been agreed.”
Fletcher also dismissed suggestions that the administration was considering a wage reduction by attrition, insisting that while the government is exploring the difficult option of wage reduction, cuts to public sector employees is not an option.
“We have no intention of legislating a wage cut. There has to be a contract between the unions and the government to decide how we reduce expenditure.”
Prime Minister Anthony has already indicated that the administration is faced with increased spending for wages and salaries in the public service sector. During 2012/2013 the bill for wages and salary in the public sector stood at EC$449 million (US$166 million). This figure is expected to increase to over EC$450 million (US$167 million), this year.
He said that outstanding increase in wages and salaries for the public sector, brought about through wage negotiations stands at approximately EC$459 million (US$170 million) and that serious attention must be paid to that situation.
“The journey has started, we have done well, we must continue, fiscal discipline is producing results – it requires a change and we have to complete this journey of taking it down,” Anthony said, adding that the goal of his administration this fiscal year is to reduce expenditure by 17.4 percent. -(CMC)