Pay rises unaffordable at this time, warns Central Bank

The Central Bank of Barbados has given more than just a strong hint that it is against increases in wages for public servants at this time, saying any rise would put additional strain on Government’s already burdened fiscal position.

In fact, Acting Governor Cleviston Haynes Tuesday warned that if Government were to grant pay rises, it would be forced to introduce other measures to “compensate” for the additional expenditure.

The National Union of Public Workers (NUPW), which represents the majority of civil servants here, has been pressing for a 23 per cent wage hike for Government workers, while the Barbados Workers’ Union (BWU) is demanding a 15 per cent increase for its members. The Freundel Stuart administration has not budged on either request.

It was a back in February during a televised economic forum hosted by the Central Bank that then Governor Dr DeLisle Worrell had argued that in order not to “cause a disaster in the economy” the Central Bank was forced to come up with $50 million every month to pay public workers because the Barbados Revenue Authority was not earning enough to cover the monthly bills.

While Haynes avoided that issue Tuesday, he stopped just short of saying the Central Bank will not support a pay increase at this time, when asked if the financial institution had factored into its projections for this year any pay hike for public sector workers.

“We have talked a lot about fiscal adjustment and reducing the size of the deficit. Therefore it is difficult to support at this time, measures which are likely to increase the size of that deficit. Once you take those measures to increase the size of the deficit, you have to also look for the compensating measures that are going to offset that increase because there is a fundamental issue that we have to address, which is, ‘how are we are going to finance the deficits that we have been running?’

“Much of that financing has come from the Central Bank and we all agreed that is not a sustainable way of dealing with the deficit. So I don’t see how we can add to the deficit without identifying the compensating measures that are going to address that increase,” Haynes said.

In any event, he said it was Government’s decision to determine how it would “reward the public servants for the sacrifice they have made over these last few years”.

26 Responses to Pay rises unaffordable at this time, warns Central Bank

  1. Sheldine Dyall
    Sheldine Dyall May 10, 2017 at 1:38 am

    When the DLP restore the 10 percent was there aware.

    Reply
  2. Ali Baba
    Ali Baba May 10, 2017 at 1:54 am

    NO THE TAXPAYERS DOLLARS IS FOR DEM AND THE ELITE FRIENDS, WHETHER INSIDE OR OUT SIDE OF BIM…..WHEN WANNA GAVE LIAT 142, BTII143MIL SOUTHERN GOLF 2 MIL, NEEDHAMNS POINT 5MIL, DURETTE 1MIL, ETC.ETC IT WASN’T UNAFFORDABLE………..ONLY THE DEMS AND CHOICE FEW MUST LIVE HUMMMMMMMMMMMMMMM

    Reply
    • Lilian Lloyd
      Lilian Lloyd May 10, 2017 at 5:08 am

      AND A WHOLE YEAR OF INDEPENDENCE CELEBRATIONS

      Reply
    • Ali Baba
      Ali Baba May 10, 2017 at 8:14 am

      Lilian Lloyd SO TRUE, I WAS MADE TO UNDERSTAND IT WENT PASS THE 7MIL BY AH GREAT DISTANCE……….WASTING DE TAX DOLLAR, BUT CAN’T GIVE AH RAISE

      Reply
    • Nicole Cumberbatch
      Nicole Cumberbatch May 10, 2017 at 8:19 am

      & $6 million for CARIFESTA

      Reply
    • Ali Baba
      Ali Baba May 10, 2017 at 8:22 am

      Nicole Cumberbatch YES SEE WHAT AH MEAN, I HOPE AND PRAY FOR THIS COUNTRY, THAT PEOPLE WOULD OPEN THEY EYES, CAUSE THE CLOSER TIME GET, MORE TEETHING WILL GO DOWN

      Reply
  3. Ali Baba
    Ali Baba May 10, 2017 at 1:56 am

    TEK DOWN YA FINGER, YA NOW START……..

    Reply
  4. hcalndre May 10, 2017 at 2:55 am

    @ Cleviston Haynes, just like how the DLP politicians were rewarded. Print some more money.

    Reply
  5. David Hinkson
    David Hinkson May 10, 2017 at 5:42 am

    If pay increases are unaffordable we should also put a restrain on increases in fees and commodities.

    Reply
  6. Don Keyote May 10, 2017 at 6:13 am

    In the absence of a salary increase, the unions should force the politicians to reverse the 10% they recently afforded themselves, plus another 10% as penalty for crass insensitivity, selfishness and stupidity.

    Reply
  7. Shanika Roberts Odle
    Shanika Roberts Odle May 10, 2017 at 6:24 am

    Why did you not tell the PM and pals when they took theirs

    Reply
  8. Stanton Peace
    Stanton Peace May 10, 2017 at 6:36 am

    Now look at this foolishness this wednesday morning,,this acting Governor has just recieved a big increase,plus mercedes benz car ,driver,free cell phones entertainment and all manner of allowances which he took but the civil servants are not to receive a red cent. Your handsome pay increase plus perks are also not affordable at this time.

    Reply
  9. Greengiant May 10, 2017 at 6:41 am

    This type is never good news, but it is reality the country can’t afford wage increases at this time. I can recall a wage freeze being agreed to during better economic times than these. Does anybody else remember that occasion when the social partnership and government agreed?

    That said agreement was used by the union to get an increase for the hotel sector some years ago when there was improvement in that sector. Will the social partnership agree with this administration as well? Time will tell, but if they agreed when there was more money around, why not now as well? These are the reasons we really need a fresh start.

    Reply
  10. Dennis Taitt
    Dennis Taitt May 10, 2017 at 8:58 am

    You want yours raised though. Guess you had a lovely breakfast this morning. All your bills paid your children (if any)well off. And you have maids . You people do not give a shite about the poor. Time to disrespect these well off criminals.

    Reply
  11. Dennis Taitt
    Dennis Taitt May 10, 2017 at 9:06 am

    Get the rid of this regime it we are not given a pay increase and who ever is elected if they do not do it in the first 6 months of being in office. Call for a fresh election. These people doing too much shite now. This freak should be fired right away for this shite remarks. He does not know the plight of the blasted poor people in this island . These people employing people that do not know how it feels to go to sleep hungry. Carless chat breeds crime . This guy is an educated “”” you know the rest. Fire him now. He is very uncaring.

    Reply
  12. Antonio Cozier
    Antonio Cozier May 10, 2017 at 9:18 am

    Can we afford to give back The Politician’s 10%

    Reply
  13. Antonio Cozier
    Antonio Cozier May 10, 2017 at 9:20 am

    Deplorable Lying Psychopath

    Reply
  14. jennifer May 10, 2017 at 9:40 am

    Typical of these politicians in general. Spend money where it is not needed. Just like how they run their personal lives and households. Spend what they done got, then seek an ATM to che o into negative balance. Then NAIL THE SMALL MAN TO THE CROSS. You big house lot should take some of your own advice u give to the masses. You lot too drunk, must be that good old pork wine.

    Reply
  15. Mikey May 10, 2017 at 9:43 am

    @Greengiant, again you are on the right track, but do you recall that EVERY Central Bank Governor has said at one time or other that wage increases was not on. Collectively and over the past that the Bank was in existence, Not a single worker should have been given any raises for approx 40 years ?
    Lo and Behold, the Central Bank raked in losses a few years ago. Did they get any raises at that institution ? Just asking !

    We really need a New Fresh start . We have to break down old Barns and rebuild NEW Barns, Solutions, Parties.

    Reply
  16. Joy Waldron
    Joy Waldron May 10, 2017 at 9:45 am

    Hmm only for ppl that working hard. But ppl that telling us lies and not working restore 10%. DEM must go and take them friends

    Reply
  17. F.A.Rudder May 10, 2017 at 9:49 am

    A credit union at very low interest rates should be initiated to off set these workers dept servicing capability I might say .I’m not in finance or banking business so I would wish that those experts come to board with a plan and forward it to the economic planners for analysts. We should not be placing more burden on our Central Bank at this point due to the fact that it could cause a crippling effect to our nation’s ability to do external and internal business. Be concerned citizens and united citizens in times of crises. United we stand divided we fall as a Nation! Lets forget about pleasing others and lets please ourselves with a strong come back and the learned memory of the mistakes that we have made in the past. We look forward to sound economic planning in our future quarters ahead of us. “We are firm craftsmen of our fate”!

    Reply
  18. Sunshine Sunny Shine May 10, 2017 at 12:57 pm

    You do not need anymore proof to know that the DLP under Stuart is a bad omen. Any Barbadian still wantin to remain loyal to these serpents are either bought or plan downright foolish.

    Reply
    • jennifer May 10, 2017 at 1:37 pm

      SSS – girl u half correct. a serpent is a long venomous INVERTEBRAE I.e NO BACK BONE. It can vary in LENGTH. They are not a serpent. The serpent is actually on top of them. And a big BOA CONSTRICTOR at that. Da like um so.

      Reply
  19. jrsmith May 10, 2017 at 2:47 pm

    The only people to take some blame with our corrupt politicians , are the one as voters with the loyalty passes and jobs……..
    **********************************************
    As for the (Central Bank ) and others , who seems to be a bunch of ( frighten , cowardly experts ), who hide behind the media as they soap box to identify how clever their are ……………………….
    None of them, would never directly challenge , or put in writing to the Priminster of Barbados , as to what he should do to get something to happen to the Barbados economy …
    ***************************************************
    The 1% ers of our Nation , decades from now is going to be in the same position as their are today , with the black masses of bajans trying survival techniques the best way they can………….
    Who has got the ****s to challenge the government to put on display in our (Parliament Buildings) an (Audited ) report for year 2015 ……2016 …… he who dares may be a winner……………

    Reply
  20. Nathaniel Samuels May 10, 2017 at 11:54 pm

    If they say they love Barbados and that by inference ‘they are not enemies of the state’, then the right thing would be to give back the 10% and give back all the salary they earned since 2013. Simply for love of country!!

    Reply

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