Dear Editor,
I read a missive from EB John, captioned ‘Public Servants 8% is a subversion of equality’, and the first idea which came to mind was: What was the writer’s reaction to the paltry increases given to these categories of workers when the Coalition was in Government, in the midst of rising costs, punitive increases in taxes, thousands of job losses, et cetera?
Mr John must realise that the increases given to Public Servants were taken back by the huge increases in taxes. I have not read anywhere that he condemned the unilateral and meagre wages and salaries’ hikes thrown at the Public Servants after they had been promised ‘significant’ wages and salaries’ increases in 2015, and whilst the Coalition were rewarding themselves with 50-100% tax free increases.
According to the Human Resources Consultant, “This announcement is nothing to be excited about; it is merely another ‘grant’ for Christmas”. This is typical of a person who feels that workers must be given humongous salary increases despite the negative effects it would have on the economy.
However, it is a known fact that the human resource departments of business entities would normally oppose unsustainable salary increases, since they are acutely aware of the financial ability or inability of the company to offer such increases.
Any economist worth his salt would tell you basically that if wages and salaries are increased too much, this would severely impact the labour costs that employers must pay. This, in turn, could trigger price inflation, hurt exports, and reduce the level of employment. Should wages and salaries be increased without analysing the economic reality, then it is highly probable that the so-called “wage-inflation spiral” would lead to higher price inflation, which in turn makes workers demand higher wages. This vicious circle would continue if there is no ‘wages restraint’, and the real dollar value would crash.
The wellbeing of the economy is in the hands of the Government, and Government must be trusted to implement its macro-economic policies. The beneficial trends over the last 2 years bear testimony that these policies are bearing fruit.
It would be worthwhile for Mr John to peruse the statement made by President Ali, in which he outlined the various cash benefits received by all Guyanese: 7% increase across-the-board in 2021; the reintroduction of the one-month tax-free bonus for the disciplined services; the restoration of the cash grants, increased to $30,000 per child; removal of the punitive taxes that had been imposed by APNU/AFC on electricity, water, medical and educational supplies, basic household necessities, and basic construction materials; implementation of a number of measures to mitigate the effects of the high rise in imports’ costs, such as the removal of the excise tax on fuel, capping the freight charges used in calculating import taxes, providing fertilizer and other support to farmers to boost food production, and direct cash transfers to especially vulnerable communities.
All of these measures and many more would ensure that the general cost of living remains stable while the standard of living is improved by ensuring that everyone enjoys a better life. The 8% wages and salaries’ increases must never be looked at in isolation, and this is exactly what Mr John has done. Moreover, the President has made it quite clear that “options will be identified for adjustments to the salaries paid to a number of specific categories of public sector employees” such as nurses, interns, doctors and other healthcare professionals, and he promised “a more detailed announcement in the course of next week”.
It must be emphasised that whenever the Coalition gave wages and salaries’ increases, they took it back with a skilful sleight of the hand. They taxed Guyanese to the hilt, so that any increase in wages became meaningless. They gave a little, but took more in the end. Not so with this Government; the evidences are profound. The increases given by this Government are indeed worth a lot more.
It certainly discredits Mr John’s intelligence that he should see all of these measures as nothing more than another grant for Christmas. I am willing to bet my bottom dollar that, during the tenure of the Coalition in Government, if they had given these to the Public Servants, Santa Claus would have been extremely envious, and maybe ‘constipated’. Imagine the immeasurable joy which Public Servants and all Guyanese would experience this season.
Yours sincerely,
Haseef Yusuf
