December 4, 2019 issue

Guyana Focus

Public servants' oversized pay increases

Public servants wages in Guyana have always been a contentious issue. In recent years, the government has come under continuous criticism by the Guyana Public Service Union for imposing rather than negotiating annual wage increases.
Yet public servants have enjoyed above-average wage and salary increases over the past fifteen years, putting them in a privileged position over non-government workers.

This year they will be receiving a steep salary increase, equivalent to almost four times the annual inflation rate, maintaining a trend of oversized increases since the APNU-AFC coalition came to power in 2015.
According to an announcement by President David Granger last month, public servants earning between $100,000 and $1 million per month will receive an 8.5 per cent increase; those earning less than 100,000, a 9 per cent increase and those earning the minimum wage, an 8 per cent increase. The monthly minimum wage will rise from $64,220 to $69,336. All of the increases will be tax-free and will be retroactive to January 1, 2019.
In addition, it has also been recommended that allowances paid to public servants stationed in the hinterland region be increased from between $4,000 and $12,000 to $24,000, representing an increase of between 100 and 600 per cent.

As well, station allowances will be increased by over 260 per cent from $2,800 to $10,000; risk allowances by 900 per cent from $500 to $5,000; and clothing allowance for teachers from $13,000 and $22,135, respectively, to $15,000 and $30,000. On-call allowance for doctors will also be increased.
In announcing the increases, Granger said: “Public servants provide public goods and services which benefit everyone and every sector of the economy. The APNU+AFC Coalition is committed to creating a proficient, professional, highly-motivated and well-paid Public Service. Your government is committed to good governance and to ensuring that all Guyanese can enjoy the good life.”
Among those that will benefit from the 2019 increase are teachers, nurses, doctors, members of the Guyana Defence Force, Guyana Police Force, and the security services.
Since coming to power in 2015, the APNU+AFC coalition has showered public servants with salary increases and bonuses, as well as other benefits, highlighting their privileged status.
According to Granger: “Public Servants have received annual increases in their wages and salaries consistently since 2015. Personal allowances have increased significantly, the income-tax rate has been reduced and the tax on employees’ contributions to NIS was removed over the last four years. Special attention was given, also, to certain categories of workers such as teachers, sweeper-cleaners and engineers, among others. Increases in salaries and wages have made a positive impact on the performance of public servants themselves, on their households and on the national economy as a whole.”
Upon coming to power in 2015, the minimum basic salary of public servants was increased to $50,000, a 26.4% increase for those earning the 2013 minimum wage of $39,540 and a 17.1 % increase for public servants earning the 2014 minimum wage of $42,703. All other public servants also received a 5% salary increase plus an additional $5,000 monthly.
Public servants, who were at the time earning less than $500,000 monthly, received a one-off tax-free bonus of $50,000; those with salaries of more than $50,000 received a five per cent salary increase, while those earning $50,000 or less received an eight per cent increase.
In December 2016, public servants earning less than $500,000 per month received a tax-free bonus of $25,000, while those earning $99,000 or less benefitted from a 10 per cent increase; those earning between $100,000 and $299,000 received a six per cent increase; while those earning between $300,000 and $799,000 received a smaller increase.
In 2017, the minimum wage was increased to $60,000. Public servants earning between $55,555 and $99,999 received an increase of eight per cent; those earning between $100,000 and $299,999 received a 6% increase; those earning between $300,000 and $499,999 a 5% increase, with smaller increases for those on a higher scale.
In 2018, while no bonus was paid, the government approved increases for all public servants ranging from 0.5 per cent to 7 per cent from $60,000 to 64,000. Public servants who earned up to $100,000 received a 7 per cent increase while public servants that earned salaries between $100,000 and $299,999 received a 6.5 per cent increase, with smaller increases for those with higher salaries.
While Granger noted that public servants were doing a good job, Finance Minister, Winston Jordan told the BRANDYou Tax Forum in mid-November that the government is employing at least 15,000 to 20,000 persons who really should be sent home so those remaining on the job can be paid better wages and salaries. However, he noted that this could not happen overnight.
Jordan is reported saying: “If you really want to downsize government, you are talking about another fifteen to twenty thousand workers to really make that saving to pay those who will remain and you know that cannot happen. Even if it can happen, it would not be able to happen overnight so to speak.” Jordan stated.
If one were to read between the lines, Jordan is saying that the public service is bloated, so in effect about one-quarter or more of its workers are not necessary.
To put minimum public service salaries in perspective, it is prudent to look at historical increases in salaries. Between 2004 and 2019, the annual growth in wages averaged 7.5%, compared to an average increase in the Consumer Price Inflation (CPI) index of 4.2%. Evidently, wages have increased faster than the inflation rate. (See Chart “Public Sector Wage Growth Significantly Outpaces Inflation”)
Up until the early 2000s, the above-average increases in minimum public servants wages stem from claims by their union that the value of their wages were eroded by hyperinflation, averaging over 100% under the former PNC administration. Now that the inflation rate has fallen significantly, wages have kept rising much faster.
The underlying truth is public service wages have historically been a political issue and that does not appear to have changed. With general elections due next year, there is even more reason to keep public servants happy.
 
Sugar workers down tools over pay freeze; protest at Ministry of the Presidency
Some of the sugar workers protesting outside of the Ministry of the Presidency (GAWU photo)
Georgetown – GAWU says that thousands of sugar workers at the Albion, Blairmont and Uitvlugt Estates have downed tools as they heightened their call for a pay rise.
GuySuCo has not paid increased salaries since 2015.
In a press release, the Guyana Agricultural and General Workers Union (GAWU) said that scores of workers together with officials from GAWU and NAACIE also participated in a picketing exercise outside of the Ministry of the Presidency as they called on the Government of Guyana to bring an end to the wage freeze and to approve a pay rise to them.
The workers and the Unions are contending that the Government ought not to ignore the plight of the workers who are employed by a state-owned enterprise.
The release said that the workers have dismissed utterances by several Governmental officials that it is the Board of GuySuCo which is required to approve a pay increase to them. The workers questioned if this was indeed the case, why was it the Government, and not the Board, that engaged the Unions and other stakeholders on the closure of four sugar estates in recent times. They reminded that it was President David Granger himself, who admitted, that it was the Government that made the decision to close Wales Estate.
“The workers are of the strong view that the Administration has more than a moral obligation to assist them as they reminded that even former President Forbes Burnham, who founded PNCR, the largest party in the Coalition Government, had not treated them as (terribly) as his successors are today”, the release said.
The protesting workers echoed the sentiments of Opposition Leader, Bharrat Jagdeo who recently said that there are monies available for a pay rise to sugar workers. They said they were at a loss to know why the Government, which had embraced them prior to attaining office, was treating them with such derision.
“In the meantime, the GAWU is well aware that the Corporation has seen the necessity of granting workers a pay rise. We are knowledgeable of certain proposals that have been put forward by the Management which stress the urgency to grant a rise in pay to the workers. We also have come to know that those proposals have received the support of some in the GuySuCo Board of Directors. Clearly, a pay rise to sugar workers is no longer optional but it is now an imperative. Moreover, the necessity has gained traction and it appears that the decision is ultimately left up to the powers-that-be. Of course, their inaction, thus far, is a clear indicator as to where they stand on the issue”, the release added.
 
Integrity Commission starved for funds to publish names of delinquent
public officials
Georgetown – The Integrity Commission is unable publish and gazette the names of public officers who are delinquent in filing their declarations with the body for this year as it does not have the funds to do so, according to Chairman Kumar Doraisami.
Doraisami, who says he has been told by government that the Commission can get no additional funds for the year, has for months been decrying what he as inadequate funding for the effective execution of the Commission’s mandate, which is to ensure the integrity of persons holding public office.
As a result, Doraisami told the press that in the circumstances, the Commission is examining whether, and if so how, it can enforce compliance with the Integrity Commission Act, which states that public officials are required to file a declaration of all assets in their names, as well as the assets in the names of their spouses and children.
Over the past year, the Commission had been publicly identifying those public officials who were delinquent in filing declarations and has said the publicity resulted in some officials moving to become compliant with their obligations.
According to the Act, every person who is a person in public life, not being a member of the Commission, is required to file a declaration every year on or before June 30th and in cases where such persons cease to be a person in public life, within 30 days from the date on which the person ceases to be a person in public life. “A person in public life is required to disclose in his declaration… such details in respect of the income, assets and liabilities of himself and those of his spouse and his children, as by the exercise of reasonable care should be known to him,” the Act states, while adding that for the purposes of a declaration under Section 13, the income, assets and liabilities of a person in public life, his spouse and his child shall include the income, assets and liabilities acquired, held or incurred by any other person as agent or on behalf of all or any of them.
The Act also states that the Commission or the President, as the case may be, shall receive, examine and retain all declarations and documents filed with it or him under the Act; and make such enquiries as it or he considers necessary in order to verify or determine the accuracy of the financial affairs, as stated in the declarations of persons who are required to file declarations under this Act.
With general elections due to be held next March as a result of the passage of a no-confidence motion against the government, Doraisami also said he believes that some public officials are taking advantage of the current political uncertainty to circumvent their legal obligation to file their declarations.
Earlier this year, it was revealed that President David Granger and several government ministers failed to file their declarations by the deadline. Some ministers, including Natural Resources Minister, Raphael Trotman, Finance Minister Winston Jordan, and Public Infrastructure Minister David Patterson, have all said that they had filed their declarations within the deadline.
On the opposition side, Opposition Leader Bharat Jagdeo on Friday admitted that he was not aware of whether all opposition Members of Parliament have filed their declarations. He did confirm, however, that aside from himself, Shadow Minister of Legal Affairs and Attorney General Anil Nandlall, and Presidential Candidate Irfaan Ali have all filed their declarations.
This disclosure was made during the “soft launch” of the People’s Progressive Party/Civic’s manifesto.
Notably, Jagdeo also used the occasion to promise that if the PPP/C returns to power, it will strengthen the Integrity Commission’s capacity to function, promulgate campaign finance legislation, and reduce government involvement in processing tax exemptions, and the granting of contracts. Jagdeo also said that a PPP/C government would criminalise non-disclosure of receipts from oil companies. Instead, he said, all such receipts would be required by law to be gazetted, failing which, the offending official would be liable to imprisonment for a significant period of time. This latter provisions, Jagdeo said would be aimed at improving transparency in the oil and gas sector.
The incapacitation of the Integrity Commission by its current financial woes could be seen as a blow to Guyana’s anti-corruption architecture, which is already hamstrung by government’s failure to activate the Public Disclosures Act 2018 and the Witness Protection Act 2018, which were expected to bolster the legal framework.
Though the existence of the Integrity Commission Act ensures Guyana’s legal compliance with the United Nations Convention against Corruption, its chronic inability to properly execute its mandate means that that Guyana lacks effective compliance, as it is not enough that a regime exist. It must also work.
The Convention obligates Guyana to make provisions to allow for protected disclosures regarding corruption, and to provide protection for persons who make disclosures which, in fact, or potentially puts their lives at risk.
The Protected Disclosures Act, and the Witness Protection Act, which were both passed as bills in January of 2018, were intended to address these considerations.
However, nearly two years since then, the laws are no closer to being implemented. As a result, although Guyana attained legal compliance with the Convention through enactment of the respective legislation, it continues to fail in achieving effective compliance. Several reasons have been given by various government officials for this failure. Most of the reasons given have been a lack of financial resources.
Stabroek News reported raising the issue of the activation of the Acts on Thursday during a post-Cabinet press briefing.
On the subject of the Protected Disclosures Act, Director General of the Ministry of the Presidency, Joseph Harmon told reporters “that piece of legislation, I think, that is already activated.”
In fact, the Act has not been activated, which is evident for the non-operationalisation of several of its provisions. For instance, section 4 (1) of that Act requires the establishment and constitution of a Protected Disclosures Commission, which is required to receive, investigate and otherwise deal with disclosures of improper conduct.
The efficacy of the Act is hinged on the operationalisation of the Commission. So long as the Commission is not established, the Act remains ineffective.
There has been no indication by members of either government, or the opposition party, of plans to establish the Commission soon after the coming elections.
On the subject of witness protection, Harmon said “witness protection…sometimes…requires interstate collaboration.”
He noted that generally there are provisions, such as conditional bail, which operates to protect persons who must give evidence in a matter. He also said that “until you actually come forward and state that you have a problem, I’m afraid and all of that, it is at that point in that…there is a need for protection…but at this stage I cannot say that this has been the principle issue identified by the minister.”
Harmon added, “What we are talking about is a higher level protection, where some people have to change their identity, you have to move them out from a whole area…and you know Guyana is a small place.” Harmon also said that “while are looking at these things, we will have to look at collaboration among states so that we would have a more effective way of dealing with that issue.”
There was no mention as to any concrete plans, or any definitive timetable mapping out when the matters being looked at will be addressed, and the Act implemented.
In the interim, President David Granger, recently speaking on the absence of evidence on which to charge Roger Khan for the myriad accusations against him, noted that the dearth of evidence is, in part, the result of an unwillingness of witnesses to come forward.
 
NY group supports sugar workers
The Guyanese Solidarity Movement-New York (GSM-NY) views with deep concern the non-payment of wages and salary increases and bonuses to sugar workers since 2015. We have been heartened by the call of the sugar unions GAWU and NAACIE, and civil society urging GUYSUCO and the APNU/AFC government to honor their obligation to sugar workers.
Sugar workers should be awarded wages and salary increases and back pay as was done for all public servants, inclusive of the police, army, teachers, nurses, doctors, etc. Failing to do so would only lead us to believe that sugar workers are being discriminated against because of being loyal supporters to the opposition parties especially the People’s Progressive Party.
The history of sugar in Guyana has been a history of struggles by sugar workers. Today sugar workers, with their backs against the wall, are fighting back. They deserve a better standard of living. A decent wage and salary increase will go a far way in alleviating their dire circumstances.
The GSM-NY is solidly behind the strike action taken by the disgruntled sugar workers and will continue to lend whatever support is needed in their just demands.
It is a fact that sugar workers are contributing to the national economy by bringing in much-needed foreign exchange to the country. But they are suffering because of stagnant wages and a diminishing purchasing power since 2015. Sugar workers, like public servants, have families. They have wants and needs like all other sectors of the Guyanese workforce.
The GSM-NY is therefore calling on the APNU/AFC government to award wages and salary increases to sugar workers with immediate effect. For too long sugar workers have been at the receiving end of the big stick. It is time for them to receive justice.
 
January 10 is Nominations Day for March 2 polls
Georgetown – January 10th, 2020 is Nominations Day for the March 2nd, 2020 General and Regional Elections, according to a notice from the Guyana Elections Commission (GECOM).
Nominations Day will be expected to trigger the dissolution of Parliament. Contesting parties will have to meet rigorous requirements for nominating signatories and to identify all of their candidates.
In the interim, the notice said that all parties desirous of contesting the general elections are required to submit a party symbol for approval by GECOM before Nominations Day.
GECOM is requesting that applications for the approval of the symbols be submitted no later than December 13th, 2019 to enable timely consideration. Symbols in both printed and electronic versions should be submitted to the office of the Chief Election Officer.
Leader of the Opposition Bharrat Jagdeo on Thursday noted that the dissolution of Parliament has to be done before Nominations Day.
Director General of the Ministry of the Presidency Joseph Harmon told a post-Cabinet press briefing on the same day that the dissolution of Parliament will be decided principally by the need for GECOM to get additional resources that it needs. He indicated that because of this, it appears that Parliament will not be dissolved by December 2nd.
While Jagdeo dismissed this argument, he claimed that government is likely to delay dissolving Parliament until after a “couple of protests” and condemnation from the international community.
He stressed that based on statutory guidelines for funding constitutional agencies, GECOM should not need any more money.
“GECOM should have in its bank account in excess of $5 billion and if they don’t have it [Minister Winston] Jordan is breaking the law,” he said.
Jagdeo emphasised that having received in excess of $7 billion in allocated sums, the commission, as a constitutional agency, is not required to return it to the Consolidated Fund at the end of the fiscal year and even if it were required to, then it should be able to “draw down from the Contingency Fund.”
“You don’t have to go back to Parliament. This counts as an emergency,” he stressed.
 
Another party launched
Georgetown – The People’s Republic Party (PRP), which calls itself a political organisation established on and governed by godly principles, was launched last week with a pledge by the Christian leaders at its helm to lead the country away from the path of corruption towards it best years.
Dr. Valerie Leung, a pastor and senior lecturer at the University of Guyana, the party’s Presidential Candidate, told the launch at the Ocean View Hotel at Liliendaal that corruption is to blame for Guyana’s stagnation in spite of its abundant resources.
“Guyana is plagued by corruption. No country can get past this mud hole,” Dr. Leung said. “The political leaders are elected to look after our best interests but they only look after theirs,” she added. She further noted that corrupt leaders are often helped by good people, such as the churches which remain silent, but she believes that with honest, moral people who are God fearing and watchmen of justice at the helm, Guyana could progress from being a third world country corrupted by false promises.
Dr. Leung assured that the PRP will not be a ploy to entice people to vote. Instead, she said it will be pursuing what it believes can be done for the nation in five years, including job creation, economic development, and diversifying the economy.
She emphasised that the country cannot put all its eggs into the “oil basket,” particularly due to the contracts that have already been agreed.
 

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