Gov't shrinking public sector payroll
-as part of debt relief conditions
Stabroek News
May 28, 2004
Over 3800 public servants have lost their jobs since 2000, and many more will be laid off as the bauxite and sugar industries are restructured and the civil service is reorganised over the next year.
The government was required to send home an additional 1000 public servants by the end of last year before it could have qualified for more debt relief but sought a waiver from the international institutions on this because of the high political and ethnic tension and the potential for serious unrest. The waiver was granted.
Starting in 2000, the government outsourced 1300 security guards as part of the IMF/World Bank conditions for additional debt relief. This was against a target of 1000 and the government was to have slashed the core civil service by a further 1000.
But layoffs in the bauxite sector and attrition in the sugar industry more than made up for the shortfall. Between 2000-2002, Guysuco laid off 760 persons or 4% of its labour force and a further 700 persons were to be laid off by the end of 2003, taking that tally to 1460.
Linmine sent home 1000 workers (some of whom have been rehired) while workers in Bermine/Aroaima have also been sent home and more will go in the future. The various privatisation efforts over the years also cost numerous employees their jobs including the recent sale of the Guyana National Co-operative Bank which had a payroll of around 300.
There has been a freeze in employment in the core civil service and the government has made progress to computerize its payroll and database, conduct a payroll audit, abolish vacant positions and have in place rules for new positions. However, job descriptions and a performance appraisal system were postponed.
According to the completion point document for Guyana on the IMF website, civil service reform in Guyana has advanced with the preparation of a comprehensive public sector modernisation programme by the Inter-American Development Bank. This includes a diagnosis of the problems of the sector and proposals to reform them. The programme is not expected to take effect until next year and the wage freeze will remain in effect until then.
And while jobs are being created, these are short-term mainly in the construction sector with the boom in government spending in public infrastructure projects.