`We'll pay' - President assures public servants Guyana Chronicle September 4, 1999 WE'LL PAY: President Bharrat Jagdeo, left, and Information Minister, Mr. Moses Nagamootoo at the press conference yesterday. (Winston Oudkerk photo.) PRESIDENT Bharrat Jagdeo announced yesterday that the Government will honour the public service salary award for 1999 and 2000, but acknowledged that this will affect arrangements with multilateral financial institutions. At his first press conference at the Office of the President since taking office last month, he carefully stayed away from specifics of the impact of the award by an arbitration tribunal on national programmes. He, however, conceded that there would be implications for this country's programmes with the International Monetary Fund and the World Bank. The Government still does not have the money to meet the award, he told reporters. However, President Jagdeo said that over the next 45 days, as provided for by the tribunal, the government will examine ways of getting the money for the payment and this would be done with the collaboration of the social partners. "We have always acted in good faith and discharged our obligations honourably", he declared. The President said that as Finance Minister he had indicated that any excessive increase at this time could result in major dislocations, including inflation and cuts in social sector expenditure. "I will be purposefully looking, internally and overseas, for means to minimise the likely negative impact of these adjustments," he said. Mr. Jagdeo also acknowledged that modernisation of the public service, as recognised by the tribunal, could lead to streamlining but pledged that there would be "no spiteful retrenchment" as a result of the award or within the concept of modernisation. On claims by tribunal chairman, Dr. Aubrey Armstrong that he was subjected to pressures by the government, the President responded: "I want to state that I, at no time attempted, nor did I instruct anyone, to be engaged in any such activity. My cabinet colleagues have also distanced themselves from this allegation. This should be clarified." The tribunal ruled that the minimum salary at the lowest band in the public service wage and salary structure shall be, with effect from January 1, 1999, $15,000 a month. It further ruled that the amount at January 1, 2000 shall be $19,000. It added that all salaries across-the-board shall be increased by the percentage level equivalent of this i.e. 31.06 per cent for 1999 based on the December 31, 1998 wages and salary structure, and 26.67 per cent based on the December 31, 1999 wages and salary structure. Mr. Jagdeo was disappointed that the tribunal did not come up with a consensus position, pointing out that there are claims of serious breaches. "If it is true that such is the case, then this would have serious consequences in the future for the arbitration process in Guyana," he said, noting that Minister of Labour, Dr. Henry Jeffrey was examining this matter. He said the pending results of the `breach of procedures claim' investigation would not affect payment of the award, explaining that the probe will determine what steps would be taken in setting up future arbitration tribunals. Jeffrey, at Tuesday's announcement of the award said, "I think that it is a pity that we did not have a consensus...in my view a consensus in our context is as important as the award itself." He had noted that the Government would have to study what was being said. The minister remarked that the award is about 200 per cent more than the government intended. "I have two reports when the idea was to have one and therefore it places me in the position of saying that something might have gone wrong with the process," he said. Government nominee on the tribunal, Dr. Gobind Ganga has dubbed the body a "two-man" tribunal, claiming he knew nothing about the final award, but left to write a minority report when a 12 per cent by him and a 17 per cent floor by unions nominee Professor Clive Thomas was under discussion. The tribunal was set up under the agreement late June to end an almost two-month public sector strike to back demands by the Guyana Public Service Union and the Federated Union of Government Employees for a 40 per cent pay hike. (ROBERT BAZIL) A © page from: Guyana: Land of Six Peoples