A wage increase for public servants is merited based on the Central Bank of Barbados’ most recent report, says President of the Democratic Labour Party (DLP) Dr Ronnie Yearwood.
In fact, he accused the Mia Mottley-led Government of “wanting to have its cake and eat it too”.
Similar sentiments have also been expressed by leader of the Alliance Party for Progress (APP) Bishop Joseph Atherley, who said Government had found itself in a “conundrum” because it was not being entirely honest with Barbadians.
Their comments have come one day after Governor of the Central Bank Cleviston Haynes revealed that the country’s economy had grown by 10.5 per cent for the first six months of the year.
However, Haynes poured cold water on the suggestion that now was a good time to give public servants a wage hike.
In an interview with Barbados TODAY, Dr Yearwood pointed out that with Barbados’ economy having previously contracted by 16 per cent, the 10.5 per cent growth stated by the Central Bank meant there had been “no real growth”.
He said it would have been “a more straightforward approach” if the Central Bank had presented the information in that manner.
“I think the Government and perhaps the Governor is practicing what we call cakeism. He’s trying to have his cake and he’s trying to eat it too and this is why the Government is having problems with the narrative and the call for a wage increase, because here the Governor is announcing that we had growth, the economy is doing great, we’re bouncing back, unemployment is low. If that is the case then productivity should be going up. But on the other hand they’re saying we can’t afford reasonable wage increases and they need productivity gain. So which story is it?” Dr Yearwood asked.
“I think that’s the problem and that’s why they’re always going to have this call for wage increases, because if they were more straightforward with where they are, then perhaps they wouldn’t get that direct call. But the reality is if they’re making the argument and they are, that we’ve got growth, the economy is booming ahead, we’re out of the cloud so to speak, then the argument for wage increases looks legitimate.
“The Government can’t have it both ways. They’re either having growth and doing magnificently well and can afford wage increases or the growth that we are having is not real and therefore we can’t afford wage increases and that’s why I say they’re trapped by their own story and that’s why I call it cakeism,” the DLP leader maintained.
Atherley, the former Opposition Leader, told Barbados TODAY he believes Government’s reluctance to grant a salary increase to public servants was due to the fact it was preparing to enter into another agreement with the International Monetary Fund (IMF).
He said the IMF’s strict goals would limit Government spending.
“Government finds itself where it is sending mixed signals that it can’t afford a wage hike. You are boasting of relative growth and growth signs and at the same time you are spending money in the areas that are fairly questionable and not properly being accounted for…
“I think part of the problem that faces Government, the position in which it finds itself, is that Government anticipates that it will enter into a new arrangement with the IMF. Once you do that in the current circumstances the IMF will insist that you revert to a situation where you are intending to achieve a primary surplus of six per cent. Now, because of the COVID situation, we were allowed to run a lower surplus to run a deficit of one per cent. But if you go into a new arrangement then you will be in a situation where the IMF will insist you have to go back to levels of about six per cent primary surplus,” Bishop Atherley suggested.
“That has implications for Government’s spending and Government knows it will be constrained in terms of the kind of monies it is able to spend on a public sector wage bill.”
The post Mixed signals appeared first on Barbados Today.