Government To Engage Trade Unions On Public-Sector Compensation Review

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, says the Administration will be engaging trade unions representing government workers during 2021/22, to fine-tune the public-sector compensation review.

Opening the 2021/22 Budget Debate, in the House of Representatives on March 9, Dr. Clarke reiterated that consequent on the fiscal pressures resulting from the coronavirus (COVID-19) pandemic, the timeline for implementing recommendations in the review had been pushed back from 2021/22 to 2022/23.

This, he said, “as we seek to address the public health situation and… the imperatives of social and economic recovery”.

Dr. Clarke pointed out that the proposals resulted from an extensive review of the existing compensation structure, which was found to have 185 sets of allowances designed to supplement salaries, among other things.

The Minister said the review by global consultants, Ernst and Young, covered the 325 salary scales and job grades, and 185 allowances; an evaluation of approximately 500 benchmark jobs; interviews with job holders, and a wage survey of compensation in the public and private sectors.

Dr. Clarke said the recommendations include rationalisation and consolidation of allowances into basic pay, moving to a common pay-grading structure, establishing a single common factor-based job evaluation system, and introducing a pay-for-performance system.

The Minister indicated that focus is being placed on developing a compensation system that is simple and easily understood, consistent with equitable application and transparency across the public service, recognises and rewards performance, and is sustainable.

“We recognise that there have been previous attempts to deal with compensation in the public sector… many starts and stops… and the fiscal position of the Government was unable to sustain those,” he noted.

Dr. Clarke said it is anticipated that as the Administration enters into discussions with the unions, “there will be a general understanding… that given the imperatives before us at this time, the Government can only accommodate modest wage increases as we seek to address the public health situation”.