Statement by the Government of Guyana on reaching agreement to end public service strike Guyana Chronicle June 25, 1999 THE Government of Guyana has entered into an agreement with the Guyana Public Service Union (GPSU) and the Federated Union of Government Employees (FUGE) to end the strike in the public service, and to settle the existing differences between them through arbitration. The Terms of Resumption of Work and the Terms of Reference for the proposed Arbitration Tribunal were ratified by the Government and the unions on Wednesday June 23, at the Ministry of Labour. A critical role in bringing the impasse to this culminating stage has been played by civil society, represented by a Mediation Team which was drawn from the Guyana Private Sector Commission, Guyana Trades Union Congress, Guyana Council of Churches and the Guyana Bar Association. Since the strike began on April 29, there had been protracted discussions with significant progress in most areas. However, when talks stalemated, the Government proposed and established a representative grouping from civil society to act as mediators to resolve the remaining issues. It is therefore with satisfaction that the Government evaluates the work of the Mediation Team. Over the past six years the Government has maintained a consistent record of increasing salaries in the public service in keeping with its ability to do so. Unfortunately, disagreement between the Government and the Guyana Public Service Union (GPSU) on the level of salary increases for 1999 occasioned industrial action. This escalated into social unrest, mainly in Georgetown, which had posed grave dangers for our fledging democracy. The strike has been exploited by elements with a declared anti-government political agenda. They not only wanted to shut down Government; they also attempted to engulf the city in a circle of terrorism and to cripple commercial and economic activities. Georgetown was placed under tremendous pressures, and harmonious ethnic relationships were threatened by racially-motivated attacks. Throughout this period the Government acted with tremendous restraint. It did not allow itself to be baited by extremist elements who were hoping that the Government would react to their provocation with naked force. During the strike period the airport, electricity and water services remained operational. However Government maintained other essential services, including the ferry crossing, through the initiative of the Civil Defence Commission. Army personnel were deployed to man ferry services, and they discharged their new responsibilities with dedication and discipline. Government wishes to place on record the appreciation of the nation for the patriotic contributions of personnel who have performed beyond the call of normal duty. At all times, in spite of barricades and physical assaults from protesters, medical personnel rendered essential services at our hospitals. They performed emergency operations, delivered babies, and cared for the sick. These were done at great risk to the safety and lives of these dedicated doctors, nurses and technical personnel, and at great sacrifices. There were also volunteers who rallied to render humanitarian services. To all of them the Government expresses the heartfelt gratitude of our people. The strike had witnessed brutal incidents which were not in consonance with the industrial nature of the action. The urban business community was terrorised and their properties targeted for destruction; market vendors were attacked; citizens were robbed, and journalists were assaulted. The Government of Guyana shares the hurt and loss of all who suffered unjustly over these weeks. It also embraces the courage of those who stood up to the challenge, and never lost faith. The resort to the use of incendiary devices, including Molotov cocktails and grenades, posed a new challenge to our security forces. Throughout this period the officers and ranks of the Guyana Police Force discharged themselves with credit. The state has taken cognisance of the professionalism and bravery of our men and women in uniform under constant provocation and assault, and believes that their approach of restraint and tolerance has been vindicated. The Government of Guyana recognises that the strike has had deleterious effects on the delivery of services, commercial business operations and notably, collection of Government revenues. There was always the danger that the strike could be manipulated to engender ethnic conflicts. There was no good sense therefore for such a strike to continue. In this regard while Government weighed all options in dealing with the situation, it has always been guided by an interest to negotiate a settlement. The Government believes that the present settlement is reasonable and should receive the widest support. The terms of resumption constitute an act of good faith that would encourage a full return to work, and the restoration to normalcy at our work places. The Government has agreed that there shall be no break in service; no victimisation. Deduction of wages for the days employees were on strike shall commence from November 1, 1999 and shall be deducted over a seven-month period in equal amounts. No deductions shall be made in December. The Government will make an advance payment to public servants of $201 million. This amount represents an advance of 4.6 per cent offered for 1999 or $101 million, together with an extra-budgetary payment of $100 million. In addition, a further $101 million will be advanced against year 2000 earnings. This will make a total advance of $302 million. This sum is to be paid in three tranches - $216 million at the end of June and $43 million at the end of July and August 1999, respectively. The sum advanced against year 2000 earnings will be provided from sources other than the Government of Guyana. The sum of 4.6 per cent ($101 million) for 1999 and 4.6 per cent ($101 million) for 2000 are non-refundable sums which will be deducted from the arbitration awards for those years or remain with the workers if the awards are lesser than those sums. The $100 million from non-budgetary sources will also be non-refundable if the awards are lesser than the total sum for 1999. After the tribunal gives its award the necessary retroactive adjustments will be made to overtime pay. The Government of Guyana has agreed to support FUGE members employed by corporations/agencies who have requested an interim payment of not less than eight per cent for the year 1999 from their employers. The Government agrees and undertakes to support the expeditious settlement of the current wage claims by FUGE. It has been agreed that the union and Government will examine outstanding non-wage issues and grievances, with a view to resolving them within two weeks of the resumption of work by striking employees. The parties have agreed to the appointment of a three-member arbitration tribunal appointed within one week of the signing of the terms of resumption. It will consist of a Government appointee, a union appointee, and the chairperson will be jointly selected. The tribunal will examine the existing differences between the Government and the unions in connection with (i) wages and salary increases for public servants, including those for professional, managerial and technical grades for the years 1999 and 2000; and (ii) the legitimate access of public service employees as part of the Guyanese community to access funding for poverty alleviation. The tribunal will make an award within 60 days, and this award shall be binding. The tribunal may accept and shall take into account any evidence in making its award save and except any agreement entered into by Government and third parties which in the judgement of the tribunal frustrates the objective of free collective bargaining between the Government and union. The strike has occasioned a number of incidents for which a Commission of Inquiry shall be established within 15 days of the resumption of work. The President of Guyana may at her discretion specify matters for investigation, in addition to these: (i) Police shooting of strikers and others in Water Street on Tuesday, May 18; (ii) incidents at the Ministry of Finance on Thursday, June 10 and the Georgetown Public Hospital on Friday, May 21; and (iii) forced entry by the Police at GPSU headquarters on Wednesday, June 16. The Government notes that while the parties to the dispute have agreed on ending the strike, a small extremist grouping seems bent on escalation of terror and violence. The deployment of gasolene bombs in the premises of the union constitutes a sinister attempt by dissident elements to derail a resolution of differences by peaceful means. The Government wishes to state firmly that it does not condone threats against union leaders or attacks on the PSU headquarters. The Government has exercised tremendous patience in the national interest. While it has not surrendered under pressure or terror, it remains fully committed to the well being of all the people of Guyana especially the cause of workers. Timetable Day 1 - Signing of agreement Day 6 - Full resumption of work Day 10 - Appointment of tribunal Day 70 - Submission of arbitration award A © page from: Guyana: Land of Six Peoples