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Jul 8, 2015

Union Presidents Explain Formula for Salary Adjustments

Luke Palacio

The Collective Bargaining Agreement is for a three-year period, but was in the pipeline for six years. Back in 2008, the proposals were for a thirty percent adjustment for teachers and public officers because in the union’s estimation, the value of the dollar had dropped by that same percent. But following the final negotiations in 2014, teachers and public officers received six percent adjustments and this year, it is an eight percent. A third adjustment will come on stream in 2016, but that figure is yet to be announced. The formula, says PSU President, Marvin Blades depends on the performance of the public officers while National President of the B.N.T.U., Luke Palacio, says it could be used in future CBAs. But what is the formula that was used to determine the quantum?

 

Luke Palacio, National President, B.N.T.U.

“When we got this proposed formula from the prime minister, the critical question or issue for most , if not all the membership of the unions was the use of the word IF. And we were able to point out that basically what we had noted in terms of that formula; that each year the recurrent revenue that government gets through the different forms of taxation increases. And so therefore, because our position also was that if the country indeed could not afford a salary adjustment, it is not something that we would have created much chaos and violence over. And so now the formula has proven to be working; we from the unions do believe that it is a formula that we could use for a long time in perpetuity as opposed to every time you do a CBA negotiations that you would go back and negotiate salaries. So that is something that we think is good based on this formula. Of course, we also in line with this ensured that there would be the two committees; one, to advice the government on cost saving measures and the other, to enhance revenue collection. With those two committees in place, we believe that the public officers and teachers will also be contributing to the sustainability of such a formula going forward.”

 

Marvin Blades

Marvin Blades, President, P.S.U.

“This formula that we are using is hinged not only on the…this is the first time actually that this formula or any salary adjustment is hinged to the performance of public officers.”

 

William Neal, Host, OYE

“So it’s a…”

 

Marvin Blades

“It is performance based also. It is almost like an increment design because if you are not performing, getting the revenue increase then you don’t have anything to get because fifty percent of zero is nothing. So you have to be ensuring that you get revenue one year over the other.”

 

Uniformed services as well as pensioners also benefit from the salary adjustments.  

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