‘Govt. refuses to give public servants a fair share of Guyana’s newfound wealth’ - GPSU

‘Govt. refuses to give public servants a fair share of Guyana’s newfound wealth’ – GPSU

Dec 13, 2023 News

Kaieteur News – The Guyana Public Service Union (GPSU) has accused the Government of Guyana (GOG) of failing to provide workers “a fair share of Guyana’s newfound wealth.”

In a press statement on Monday, the GPSU condemned the government’s decision to grant a 6.5 percent salary increase for Public Sector Workers, labelling it “insensitive, uncaring, and a blatant disregard for the collective bargaining process.” The Union said that its position is shared by several other workers’ representatives and the public.

On Friday, Senior Minister within the Office of the President, with responsibility for Finance, Dr. Ashni Singh announced the 6.5 percent increase, effective retroactively from January 1, 2023. This figure represents a decrease from the 7 percent and 8 percent increments provided in 2021 and 2022, respectively. He also announced a one-month tax-free bonus for members of the disciplined services.

The new salary adjustment comes at a time when Guyana has been placed among the world’s fastest-growing economies and is expected to expand by at least 25% per year in the next three to four years. The International Monetary Fund (IMF) in its December 2023 report on Guyana outlined that the country’s economy has tripled in size since the start of oil extraction (end-2019), from one of the lowest Gross Domestic Product (GDP) per capita in Latin America and the Caribbean.

GPSU said, “The widely held view is that pertinent factors such as Guyana’s rapid acceleration in GDP Growth over the past few years, and associated increases in revenue, would have resulted in meaningful benefits for workers.”

As such, the Union underscored that a meagre 6.5 percent imposition is considered insulting and warrants sharp rebuke.

The GPSU highlighted the disparity between GDP growth and salary increments over the past four years (2020-2023). In 2020, Guyana experienced a 43.5 percent GDP growth with no corresponding salary increase. 2021 saw a GDP growth of 20.1 percent, accompanied by a 7 percent salary increase. Notably, in 2022, the GDP surged by an impressive 62.3%, with public servants receiving an 8 percent salary hike. GPSU highlighted that despite the forecasted exceptional 38.4 percent GDP growth in 2023, the government implemented only a 6.5 percent salary increase.

The Union emphasized that this pattern exemplifies the government’s reluctance to ensure equitable wealth distribution to workers.

GPSU criticized the significant contrast in the government’s allocation of oil revenues. The National Assembly approved a $208.9 billion withdrawal from the Natural Resources Fund (NRF) in 2023. By November 23, 2023, the government had withdrawn $176.8 billion, contrasting sharply with the meagre $7.9 billion allocated as a 6.5 percent salary increase for 54,000 public servants in the same year, which constitutes a mere 3.78 percent of the total funds to be withdrawn from the oil fund this year.

Moreover, GPSU underscored that the government’s actions violate legal obligations for collective bargaining and exacerbate resource distribution inequalities, weakening national unity efforts, particularly in the face of external threats.

Additionally, the Union said too that at a time when prices are intolerable, the average worker received a paltry $25,000 one-off with a $4,875 increase on the minimum wage. GPSU criticized the disparity in financial support between the average worker $25,000 one-time increase and retrenched sugar workers obtaining a $250,000 cash grant in December 2021 after acquiring severance.

“The average worker sees this behaviour as blatant disrespect and discrimination which cannot be appeased with photo opportunities, glowing unity statements, and mere superficial gestures of solidarity. The government must change its posture towards tens of thousands of public servants who are currently denied their legal rights to be represented by their recognized trade unions as part of their attempts at national unity particularly when trying to portray Guyana as a law-abiding nation to the international community…” the Union noted.

The GPSU concluded by urging the government to rectify these inequalities, emphasizing the need for inclusivity and sensitivity toward the working class amid Guyana’s challenges.

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Government, Guyana Public Service Union (GPSU), public, servants, Wealth

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