Unions say $332 mil – Finance says $500 mil
The debate on the national budget is slated for next Monday, March 24, and Tuesday, March 25, but the Government and the unions have yet to iron out the details of the salary adjustment, proposed at $22 million in the draft budget for the 2014-2015 fiscal year, which begins on April 1.
Union reps met with officials of the Ministry of Finance last Wednesday to check the numbers, because the unions are still holding their position – that the 5% increase should be a minimum, and more, if possible, should be paid towards the 30% tiered salary adjustment.
They are calling on the Government to effect the salary adjustment over three years, and while the Government has agreed, in principle, the parties remain at loggerheads because the difference between the union’s tally on the size of the wage bill and the Government’s tally is more than $100 million.
George Frazer, one of the negotiators for the Belize National Teachers’ Union (BNTU), told our newspaper that the salary bill should be roughly $336 million, but Government’s estimate puts it at nearly $500 million.
“When we started negotiations and up to December 2012, [Financial Secretary] Joe Waight was telling us that each 1% increase will come up to a little over $3 million. Over the last 5 to 6 months, they say $5.7 million,” Frazer told us.
Waight had told us in January that Government is currently spending about $500 million on wages, wage-related grants and on pensions.
The union negotiator said that Government employs over 330 contract officers who, generally, negotiate their own contracts and benefits, so—except for medical officers—they ought not to be included in the estimated figure that will be used to calculate the salary adjustment.
He said that the Ministry of Finance officials proposed three scenarios, and they meet again next Wednesday, March 26, the day before the budget is sent up to the Senate the following day, to finalize their negotiations.
Frazer said their proposal is based on three main pillars: (1) reduced waste and abuse (2) new sources of revenues and (3) economic growth: more money circulating, more jobs and more spending.