Government Comments: BTUC Members Meeting

January 25, 2015

The Government commented on the Bermuda Trade Union Congress [BTUC] meeting scheduled for tomorrow morning, which they said is likely to disrupt public services for residents.

On Friday, the BTUC — which is made up of the island’s various trade unions including the BIU, BPSU and BUT — called an urgent meeting for all public service employees at 10.00am on Monday [Jan 26] morning.

“The public will recall that last October, a Budget Reduction Working Group comprising of Government representatives and members of the BTUC committed to entering into collaborative discussions aimed at identifying opportunities to achieve a five percent savings in Government’s operating budget,” a spokesperson said.

“The collaborative effort generated a proposal that could yield an estimated $37 million. Other savings have also been identified. Notwithstanding, it should be stressed that with this level of savings Government will still incur a deficit of over $200 million in the upcoming 2015/2016 National Budget, which will add to the Government’s current debt of $2.185 billion.

“The reality is that the Government needs to find further savings to meet its deficit reduction plans as the current deficit and debt levels are not only unsustainable but economically and fiscally imprudent.”

Video of the BTUC announcing the emergency meeting will be held on Monday

Premier and Minister of National Security Michael Dunkley said, “We are very grateful for the contributions of the Working Group as well as technical officers across the Public Service for identifying cost cutting proposals.

“We acknowledge that a great deal of work has been undertaken and we appreciate all of the dedication and commitment that the Unions have provided towards not only this process but towards ‎ensuring the strong representation for their members.

“At this stage however we need to factor in possible savings from a furlough day or a furlough day equivalent.”

The Premier continued, “It is not the Government’s desire to displace public officers at this time, but the stark reality is that we cannot maintain employment numbers at the existing salary levels without the furlough day.”

A spokesperson added, “The Working Group’s discussions concluded December 2014. ‎The delivery of Government’s 2015/16 Budget is due in a matter of weeks.

“The Government respects the BTUC’s decision to put the furlough day proposal matter before its members. The furlough option, which the BTUC agreed to previously, is designed to preserve their members’ jobs and protect their pensions; any other option could impact the same negatively.

“In light of tomorrow’s combined full membership meeting, the Government calls on the Unions to be mindful of the impact of the disruption of services on the community given the time of the meeting.

“Also, the Government acknowledges the efforts being undertaken by the various Unions to ensure that the public schools and rest homes have adequate coverage during the meeting period.

“As an added note, it is Government’s intent to call upon all sectors of the community to contribute to the budget reduction and savings process and it is hopeful that the leadership of the BTUC and others will continue to lend their support to the Government to conclude this collaborative process.”

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Comments (36)

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  1. kangoocar says:

    I would like to thank the Premier Michael Dunkley for explaining the OBA posistion as plain as could be, but unfortantley I have a sinking feeling that all correct thinking Bermudians should “brace for impact???” The unions/plp have no interest in what is good for ALL of Bermuda, just what is good for them in the SHORT term!!!! Please OBA do not bend or we are ALL finished, either we do the correct thing now or austerity in a couple of years time will NOT be an option!!!!

    • Mockingjay says:

      Bend or Break.

    • Mockingjay says:

      Be mindful of what you said, WHAT A WASTE OF F!@#ING……………………………………….
      Where you mindful then.
      Karma’s a B1+ch.

    • Self says:

      Yes, you should brace for impact. Government employees kept to their end of the bargain, while Government continues to waste money. They have plenty of other options besides continuing with the furlough day. Why should the workers have to make all of the sacrifices simply because of where they work. It should be shared sacrifice for all of us.

      • RJ says:

        Hasn’t exactly been a heck of a lot of shared sacrifice. Why should folks in the public sector receive a pay raise with job security now when private sector employees have no such guarantee? Look at the latest employment numbers: there’s been *plenty* of sacrifice by the private sector.

        • RJ says:

          … and by the way, the only alternative is to cut staff, as Barbados did recently (3,000+ laid off). When staffing costs represent the overwhelming majority of Government revenue, the only way to truly tackle the Island’s deficit problem is to tackle the source. It’s a harsh truth, but, given the state of the country’s finances, I think a furlough day is pretty generous. By the way, my pay was cut, too!

        • Tough Love says:

          What lies are you spewing?!? There are no raises, salaries are FROZEN and when older people retire they are not replaced.

          • Creamy says:

            Salaries aren’t frozen. They get around it by moving through pay grades. We aren’t stupid.

            The civil service is fat, bloated, expensive and too big. When was the last time a civil servant got fired for incompetence?

      • Build a Better Bermuda says:

        Kindly highlight where they have been wasteful in spending, they have reduced their travel as much as possible, reduced overall consultants hired… one one big breaker of expense that will be of a negative impact will be the fact we got hit by 2 major storms. I do believe the ministers, MP’s and senators should be taking a pay cut as part of this budget, but you have wrongfully pointed out that the sacrificed needs to be shared by all… guess what, the private sector was sacrificing far more for far longer than the public sector in the hopes to keep jobs. But even with the Ministers, MP’s and Senators taking pay cuts, due to their smaller relative numbers, the savings will not be big enough to prevent public sector downsizing without the furlough days. But if you know of plenty of other options beside continuing the furlough days, please, start listing them.

    • ….Surely you jest. says:

      One day you really must explain why atone who disagrees with you or your Government doesn’t love Bermuda. I am fascinated by this recent phenomenon which sees no room for any different points of view.

    • Cathy says:

      Please note that:
      1)By no means are all Union members PLP supporters so STOP saying unions/plp!!!
      2)There are MANY hardworking Government employees
      3)There has been no increase in Civil Servants salaries in at least 5 YEARS
      4)To my knowledge the sitting MP’S still have not agreed to any pay reduction themselves!

      Really…I wish people would look at the facts!! If jobs have to go then they have to go. Maybe it’s about time the civil service tree was pruned – but don’t try to tell us that there’s something wrong with us refusing to agree to furlough days. It’s our right to voice our opinions – we do still live in a democracy don’t we????

    • Rhonda says:

      77 million on AC

  2. Time Shall Tell says:

    He has the nerve to ask the Unions to be mindful but was his team mindful when they gave such a short deadline?

    • North rock says:

      The unions been talking for months….knowing full well that a budget has to be readied by February. It’s not short notice…it’s just a political desire to be difficult by the BIU and a national desire to be responsible by the Government.

      You can slice this sixty different ways but there ain’t no more money guys ….somebody spent it all….time to pay the piper

    • Kangoocar says:

      @time shall tell, seriously??? These discussions with the unions have been going on for months!!! It is the unions that are not doing their job??? The unions have had plenty of time to take this to tneir members!!!! What part of the government budget has to be presented to Parliament in a few weeks time did you miss??? Typical laxidasial work ethics from the unions is the REAL blame for all of this!!! And everyone wonders why the union members are thought of the way they are??????

    • Just saying says:

      be mindful that the Union has had plenty of time to call a meeting, they are the one that sprung this meeting up on all Government worker, not the Government themselves

    • Onion says:

      October-February.

      That’s a pretty decent time window.

  3. Tony says:

    Perhaps the Union would accept this: scrap the furlough, but rigorously enforce the non-performance policy, abuse of sick leave etc etc. Getting rid of the non-performers should save a fortune, and promote people into those positions who are currently held back. Save money on paying people for not doing there job, and gain the benefits from improved performance.

    Tell me, who on earth would a Union not want to see that?

    • North rock says:

      Who disliked this post??

    • Cathy says:

      You’re spot on Tony! People looking for the easy way out as usual. Too much work to figure out how to hold people accountable maybe?

  4. Terry says:

    Go back 5 years.
    Beyoncé is coming.
    Beyoncé is gone.

    Thanks Ewart.

    Time to feed the troops back home whilst you lavish in the vineyard eating grapes and sinking your toes in the Cayman sands.

    Survey says……………………….

    Tank running on empty.

    If we open the gate/s we can get a better flow of fuel and have some reserve.
    Shalom.

    • Paul Revere says:

      Terry, why are you stuck in the past? The OBA has been at the helm for 2 yrs and it’s time you and your cronies accept the facts.
      What you fail to realize is that only government workers are being asked to sacrifice, yet the same lazy people whom you complain about are working to provide services for both government and private sector.
      So maybe just maybe, only government workers be allowed on the ferries and buses.
      Maybe just maybe only government workers trash be collected
      Maybe just maybe only government workers allow to enjoy the parks n beaches

      Because the last time I checked, all of the above have government workers who are being asked to sacrifice yet the services are being enjoyed by all.

      • Terry says:

        Probabley because that’s where it all started.
        We were not in debt $2billion back then…..
        Et al.

      • Jus Wonderin' says:

        Sacrifice for one furlough day lmfao or however many it was…you lot get months of sick days and vacations when we guys only get ten days or less depending on how long ya worked. Which one you think is unfair?! Cry me a river…

      • jt says:

        Every cent earned by a government worker comes from a public sector worker (or in our case..via a loan which will be paid off by public sector workers)….EVERY single cent.

      • cole says:

        As a consultant who provided government with services at 67% of the staff rate and who was cut totally in 2012 i can tell you not only govt staff are taking cuts. The private sector has been cut to the bone for years and the taxes of those left working support the salaries of the govt staff

  5. Reveal all the recommendations! says:

    Until the Government and the Unions transparently reveal all the recommendations and those that will be enforced there should be no more furlough. For example, a freeze on hiring, breaking consultancy contracts, no overtime, eliminate police no medical copay, eliminate cell government phones, consolidate tiny primary schools….and many other options. There’s been no integrity shown with cutting the fat first.

  6. Ace girl says:

    There is no money and a debt of 200 million and people are questioning furlough days, are you kidding me? The BTUC are unhappy that’s it not enough notice for employees. I wonder how much notice will be given on the country’s bankruptcy. Some people just don’t get it.

  7. Eragon says:

    Government needs to do as Tony suggested and also cut cost at the top all these senior people collecting lots of pay for doing little to nothing. It is the same in the private sector let us be honest and state the truth. Companies and government are cutting at the bottom when cutting at the top one post can keep 3 or more positions at the bottom. Let’s start seeing some cutting at the top. If government wants to save money why are Christmas lights still on at the end of January. Every cent or dollar helps right than turn them off!!! Let’s cut cost and stop pushing employees to want to spend or not care about te dollar which is where we are; if people want to admit it or not.

  8. more than enough says:

    And those at the top continue to rake in six figure salaries any where between $100,000 to $200,000 plus…and how much does bill hanbury glean from our coffers again? Also I’m pretty sure that most if not all bermudians buy goods from our premiers private enterprise intrests. Is it really necessary for a man of such means to take any salary at all? Is it not bermuda and bermudians that support the ongoing sucess of his family in their endevours? If the entire cabinet would work for free, or take a huge cut (over 50%) the civil service and all gov.employees would have no choice (other than finding work elsewhere…) but to accept cuts also. This approach would most likely achieve better results (percentage wise) than they are hoping to achieve with this furlough crap. Everyone in gov. should be prepared to take cuts in pay after all the majority have been powdered and pampered by these cushy gov.jobs for many many years, time to wean some off of the teat, the well is run dry. Can’t handle the cuts? Try the private sector on for size.

  9. Rhonda says:

    What was the debt when the OBA took office….. 1.2 billion…..

  10. Bingo says:

    General Article: The Great DepressionOther General Articles

    NATIONAL ARCHIVES
    Men stand in line for soup.

    During the economic boom of the Roaring Twenties, the traditional values of rural America were challenged by the Jazz Age, symbolized by women smoking, drinking, and wearing short skirts. The average American was busy buying automobiles and household appliances, and speculating in the stock market, where big money could be made. Those appliances were bought on credit, however. Although businesses had made huge gains — 65 percent — from the mechanization of manufacturing, the average worker’s wages had only increased 8 percent.

    The imbalance between the rich and the poor, with 0.1 percent of society earning the same total income as 42 percent, combined with production of more and more goods and rising personal debt, could not be sustained. On Black Tuesday, October 29, 1929, the stock market crashed, triggering the Great Depression, the worst economic collapse in the history of the modern industrial world. It spread from the United States to the rest of the world, lasting from the end of 1929 until the early 1940s. With banks failing and businesses closing, more than 15 million Americans (one-quarter of the workforce) became unemployed.

    President Herbert Hoover, underestimating the seriousness of the crisis, called it “a passing incident in our national lives,” and assured Americans that it would be over in 60 days. A strong believer in rugged individualism, Hoover did not think the federal government should offer relief to the poverty-stricken population. Focusing on a trickle-down economic program to help finance businesses and banks, Hoover met with resistance from business executives who preferred to lay off workers. Blamed by many for the Great Depression, Hoover was widely ridiculed: an empty pocket turned inside out was called a “Hoover flag;” the decrepit shantytowns springing up around the country were called “Hoovervilles.” Franklin Delano Roosevelt, the rich governor from New York, offered Americans a New Deal, and was elected in a landslide victory in 1932. He took quick action to attack the Depression, declaring a four-day bank holiday, during which Congress passed the Emergency Banking Relief Act to stabilize the banking system. During the first 100 days of his administration, Roosevelt laid the groundwork for his New Deal remedies that would rescue the country from the depths of despair.

    The New Deal programs created a liberal political alliance of labor unions, blacks and other minorities, some farmers and others receiving government relief, and intellectuals. The hardship brought on by the Depression affected Americans deeply. Since the prevailing attitude of the 1920s was that success was earned, it followed that failure was deserved. The unemployment brought on by the Depression caused self-blame and self-doubt. Men were harder hit psychologically than women were. Since men were expected to provide for their families, it was humiliating to have to ask for assistance. Although some argued that women should not be given jobs when many men were unemployed, the percentage of women working increased slightly during the Depression. Traditionally female fields of teaching and social services grew under New Deal programs. Children took on more responsibilities, sometimes finding work when their parents could not. As a result of living through the Depression, some people developed habits of careful saving and frugality, others determined to create a comfortable life for themselves.

    African Americans suffered more than whites, since their jobs were often taken away from them and given to whites. In 1930, 50 percent of blacks were unemployed. However, Eleanor Roosevelt championed black rights, and New Deal programs prohibited discrimination. Discrimination continued in the South, however, as a result a large number of black voters switched from the Republican to the Democrat party during the Depression.

    The Great Depression and the New Deal changed forever the relationship between Americans and their government. Government involvement and responsibility in caring for the needy and regulating the economy came to be expected.

  11. C James says:

    This could really be the beginning of the end for Bermuda.

    1. Union doesn’t accept extended furlough.

    2. Government can’t make payroll in March.

    3. Jobs get lost by the thousand cos there really is no money.

    4. America’s Cup pulls out (our last chance).

    5. PLP gets voted back in (cos we don’t know any better)

    6. Real estate gets abandoned as everyone with a brain leaves the island.

    7. By 2020 the economy can no longer support the Oleander weekly trips.

    8. By 2025 Bermuda is populated by just a few thousand starving fishermen and women.

    9. Some time much later, a doctor – his last words are: Mission Accomplished.

    Have a nice day