Proposed 5% salary increase is above current inflation rate- President
Georgetown, GINA, November 27, 2013
President Donald Ramotar today said that coming from a trade union background and from a political Party that has and continues to fight for the rights of the working class, he would want to give much more than a five percent wage increase; however, the treasury cannot facilitate that at this point in time.
Speaking during a special interview at his Office today, he reminded of the $32B Opposition-imposed budget cut earlier this year.
“Important developmental projects are cut like the Amaila Falls which would have been about 25 percent of our GDP… the Unions have not said anything about the cuts, even though they have an impact on the development of our economy,” the Head of State said.
The Amaila Falls project, which was voted down by the combined Opposition, would have seen significant wealth creation and employment opportunities.
Since the announcement of an increase in wages and salaries that is not likely to exceed five percent by Head of the Presidential Secretariat, Dr. Roger Luncheon last week, the Guyana Public Service Union (GPSU) and some workers have staged picketing exercises; expressing dissatisfaction with the proposed increase.
President Ramotar also reminded that, “the increase that we are giving is way above the inflation rate. The half – year economic review that was presented to the Parliament, inflation was less than two percent.”
As a result of sound macro-economic policies employed by the Government, inflation has been contained to single digits over the last several years.
Government has been increasing wages and salaries for public servants every year, even during a period when many countries were forced to do the opposite, in the face of financial constraints.
When the PPP/C assumed Office in 1992, a public servant’s minimum wage was $3137 and by 2005 the figure rose to $23,204. In 2012, five percent increase was granted to public servants, in 2011, eight percent, in 2010, five percent and in 2009, six percent.