STATEMENT REGARDING PRESS REPORTS OF WAGE FREEZE

Statements appearing in the local press that a complete wage freeze will be imposed for the years 1999 and 2000 and that a programme for the discharge of 5,700 employees from the Public Service will be embarked upon are completely unfounded and incorrect.

The draft Collective Agreement presented to the Unions on the 24 July 1998 is, as its name implies, a draft to be used as a basis for discussions between the official side and the Unions.  It is unfortunate that the draft has been leaked at a stage when discussions between the two sides are still going on with the aim of reaching a final agreement.

Absolutely nowhere does the proposed draft Collective Agreement state, or even give the slightest hint, that Government will be embarking on discharging 5,700 employees from the Public Service.  

What the draft says is that both sides recognise the need to reduce the overall cost of public administration and the size of the Public Service.  It is obvious, for all those who have good faith, that the size of the Public Service can be reduced through normal wastages and through the detailing, in terms of the existing legal provisions, of those public sector employees who may wish to join other public entities.

The draft submitted to the Unions, besides covering the salaries aspect, has a substantial number of new important principles.  These have conveniently not been referred to for the simple reason that they should go a long way to improve the conditions of service of the public service employees.  

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These important principles, which involve a cost element once they are agreed to and introduced, cover amongst other aspects the following:

• sick leave arrangements

• responsibility breaks

• working arrangements

• review of allowances

• payment of overtime

• coverage of public officers against certain risks

• corrective exercises to redress anomalies resulting from the various classification and grading agreements carried out so far

• the status of disabled employees in the Public Service and their opportunities for advancement

• the need to increase the participation of female employees at all the levels of the Public Service, but in particular in the professional, vocational and managerial grades

• the need to develop effective forms of employee participation in the management of Government Departments

• occupational health and safety initiatives, including work environment improvement initiatives.

Active discussions are still continuing on the question of revision of salaries.  Proposals from the official side were presented, following the submission of the draft agreement in July, to improve the original proposals covering the years 1999 and 2000.