Agreement reached on four of the five union resolutions
PHILIPSBURG, Sint Maarten – Minister of Finance Hiro Shigemoto says he is pleased with the outcome of the meeting that he had with union leaders from the Windward Islands Civil Servants Union (WICSU/PSU), Windward Islands Teachers Union (WITU) and the ABVO on Wednesday afternoon. He adds that he fully understands and sympathizes with the position of the unions and by extension their members, however the reality of the situation is also clear.
"There is a deficit for which proposals were made to reduce the deficit to zero. Due to several factors, such as, the severity of the situation – deficit – the fact that this country need Naf.444 million to run the business of the people, as well as the fact that the government has to build many much needed institutions from scratch for which no additional funds were received, certain measures – some of which were extremely unpopular – had to be taken in order to try and avoid measures being taken against this new born country," Minister Shigemoto pointed out.
The only point where no concrete agreement could be reached is the first resolution where the unions and memberships want the total balance of the cost of living adjustment for 2006, 2007 and 2009 to be paid out by February month end, with interest. The National Alliance led government in August 2010 took an Executive Council decision to have the 5.3 per cent paid out to teachers.
The Honourable Minister of Finance Hiro Shigemoto explained to the union leaders about the situation that the new government of country Sint Maarten were confronted with after they took office on October 11, finding a budgetary deficit of between Naf.80 and Naf.130 million left behind by the National Alliance, and Government had to take responsible actions in order to present a balanced budget by December 15 according to agreements made with The Netherlands regarding public finances.
"The decisions taken by the Honourable Council of Ministers and the Parliament of our country were painful, but necessary and taken in a responsible manner and in the interests of the people, civil servants and teachers of our country.
"Seeing the hard work and dedication that our teachers put into their work on a daily basis, and recognizing that the 5.3 per cent is long overdue and goes as back to 2006, Government and Parliament still saw room within public finances to pay out a cost of living adjustment of 2.0 per cent in January 2011 with the remainder of 3.3 per cent in 2012. The reason for this split is that there was more budgetary room in 2012 to allow for a higher percentage.
"Based on discussions with union leaders on Wednesday, I have proposed with respect to union resolution one, to meet again with the unions at the end of June 2011 to evaluate the revenues received from the increase in Turn over Tax, and assess if the remainder of the 3.3 per cent could be paid out in 2011. This proposal is being put into writing.
"Our country is very fortunate when we look at developments around the world where public sector workers are being laid off, benefits are being cut out, and salaries are being reduced. Based on our own circumstances of achieving country status and having to set up a country government structure from scratch, based on having to present a balanced budget, I believe we have done well, and our teachers can rest assured that they will get what is due to them, but we are just asking for understanding and some leeway in the interests and welfare of the people of the island," Honourable Minister of Finance Hiro Shigemoto explained on Thursday after informing the Council of Ministers about his meeting with the unions.
"Dialogue is very important and I will continue to strive to have dialogue with all the social partners, as I am confident that these matters will be resolved in due time. The fact that this government was faced with the daunting task of fixing among others the budget deficit of close to Naf.130 million as well as have the budget passed by Parliament within two months did not afford me the opportunity to dialogue with the social partners as I would have liked to.
"I have been a civil servant for the past 13-years of which the last 10 in a management position within the Finance Directorate. I have always had an open door policy for the social partners especially the unions. My office is open for constructive discussion," Minister of Finance Hiro Shigemoto said on Thursday.
Resolution 2: That the Department of Salary & Wages within a timeframe of one week be supplied with personnel from within the internal government structure to fill critical vacancies and to enable this department to function optimally in processing the wages and the changes to the wages of the workers in a timely fashion starting February 2011.
Minister of Finance: "I informed the unions that Section Salaries & Wages, formation plan calls for six workers and the section has the number of required staff to fulfil the sections responsibilities."
Resolution 3: That the Government respects the laws on overtime and that those workers from Salary & Wages and all other departments who worked overtime in December 2010 be duly compensated for their work based on provisions in the law.
Minister of Finance: "There are regulations in Government where overtime is concerned. It must be requested in advance, and must be substantiated. The request must be made to the supervisor and permission must be granted in advance in order to be compensated. Once the procedures are properly followed, Government will honour them.
"Government gathers all of its income from the tax payers directly or indirectly and as such procedures are in place and have to be adhered to ensure that these monies are spent as they should be. For some a bureaucratic process, but it is imperative for all to understand that Government’s interest is to serve the general public and it is not any one person or entity’s property or interest to prevail above that."
Resolution 4: That all the Civil Servants receive the "loontrede – periodic increment which was previously automatically granted whether employees performed well or not and now has to be earned which is assessed through the newly implemented performance management system)" as an automatic compensation on their salary scale equal to those in the teaching profession, based on the fact that the performance management and evaluation was done with all civil servants in all departments. The fact of not being evaluated should not result in the workers being jeopardized in them receiving their increment to their salary scales as per January 1, 2011 (on a yearly basis according to the New Salary Scale Structure, teachers are August 1).
Minister of Finance: "The Department Head of Personnel & Organization was present during the meeting to give elucidation on the issue as this area of competence does not lay with the Minister of Finance. The department head explained that this is already established and that employees who through no fault of their own whom have not been evaluated will receive their increment.
"The unions were further explained by the department head that Personnel & Organization is complete with compiling the lists and will sit with the Finance Department in order to have the lists ready for Salaries & Wages to process and the increments are planned to be paid out retroactive January 1, 2011 with the salaries of February 2011."
Resolution 5: That the vacation allowance be paid to all workers in the second half of June 2011.
Minister of Finance: "This was confirmed."
The following unions were represented in the meeting with the Minister, Windward Islands Civil Servants Union (WICSU/PSU), Windward Islands Teachers Union (WITU) and the ABVO on Wednesday afternoon.