BPSU Responds To 2024 Throne Speech
The Bermuda Public Services Union [BPSU] says that it expresses its “support for several ambitious initiatives outlined in the recent Throne Speech” and added that “urgent action is needed to stem the tide of rising healthcare costs” and also noted that pension reform is “another growing concern.”
A spokesperson said, “The Bermuda Public Services Union expresses its support for several ambitious initiatives outlined in the recent Throne Speech, particularly those aimed at strengthening worker protections and supporting individuals with disabilities. Key measures highlighted include:
- legislative amendments to secure equal access to employment for people with disabilities,
- increase severance pay allowances from 26 to 32 weeks, and,
- remove payroll tax on redundancy pay.
“The BPSU continues to remain steadfast in its commitment to safeguarding the overall benefits of all workers and has some concerns in some key areas.
Rising healthcare costs significantly burden the Bermudian society, and the absence of universal healthcare only intensifies this issue. Health insurance premiums continue to escalate at an unsustainable rate, presenting serious challenges, particularly for Bermuda’s aging population.
“The BPSU emphasizes that urgent action is needed to stem the tide of rising healthcare costs and mitigate the negative impacts on citizens’ well-being.
“Additionally, the union highlights pension reform as another growing concern, given its critical importance for long-term economic security.
The BPSU also underscores the importance of public service reform, recognizing that efficient and high-quality public services are essential to any society.
“To this end, the union is pleased that the Government has committed to addressing the pay disparities between the public and private sectors. In order for the Government to attract and retain qualified, experienced talent, it is essential to align Public Officers’ compensation packages with market standards.
“However, while noting the Government’s intent to streamline Government operations, the BPSU emphasizes that these efforts must be balanced with considerations for job security and the necessary investment in training, resources, and facilities. For public services to be delivered effectively, staff must be equipped and incentivized to meet the evolving demands of the community.
“Another development noted by the BPSU is the Government’s intention to work with the Government House on a revised legal framework that clarifies accountability for senior constitutional roles. The Union hopes this initiative will promote greater transparency and encourage integrity within the public sector.
“The BPSU acknowledges the need for education reform, stressing the importance of collaborative commitment among all stakeholders. Given the profound impact education reform will have on future generations, buy-in from the entire community is essential to ensure success. The Government must ensure that the ethos of meaningful social dialogue is a key component during this reform.
“The BPSU reaffirms its readiness to participate in a collaborative, human-centered approach to these initiatives, advocating strongly for workers’ rights and ensuring that their voices are central in shaping Bermuda’s future.”
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“Additionally, the union highlights pension reform as another growing concern, given its critical importance for long-term economic security.”
I agree. I have been concerned about the inability to the superannuation fund to meet the pension obligations of retired civil servants since the 1990s. In addition to nearly $4 BILLION in current debt, we have BILLIONS more in unfunded pension liabilities that no one is even talking about, much less addressing.
Some things that are washed over and need to be considered.
1) Private sector salaries are not in jobs for life. If the company is bought , merges with another or goes through efficiency measures, then you are out of work. So there is a risk premium vs public sector.
2) Not all Private sector jobs are international business. There are local companies and businesses too, People tend to focus on the international business.
3) International business senior management and group companies are responsibilities for a global enterprise, the Public sector is responsibilities for local only, so again, greater responsibilities, hence remuneration differences.
4) Government is not for profit, if you want to begin making it wholly accountable, and eliminate union restrictions on staff being let go, then sure I could see an argument on increasing salaries some.
5) Management and leadership within the civil service should be appointed/elected by all residents in Bermuda, that includes PRC holders. this needs to be added to the general election ticket.
You left out final salary based pensions. A private sector pension is based on contributions to the pension and investment performance.
A Bermuda Government pension is based on the civil servant’s salary at the time of retirement and has nothing to do with contributions.
The old theory was that civil servants took lower salaries in return for better pensions. Today’s theory seems to be that civil servants should earn the same as private sector employees and still have a pension that is based on final salary, not contribution.