2023 BASE PAY NEGOTIATION
Today, 20th of December, 2022, the following were the outcomes of the negotiations:
The meeting was called off after those present were informed that some urgent issues needed to be addressed in the parliament concerning the appropriation of the budget for the year 2023. Hence government team failed to show up for the negotiation.
The government's inability to form a quorum has, therefore, called for another scheduled meeting by the Fair Wages and Salaries Commission (FWSC).
The 2023 Base Pay negotiations started on 17th November 2022 and continued 18ton h November 2022. It has been adjourned for the second time further to next week.
Summary
The proposal by Organized Labour was to address; the disparity in salaries of public servants and somehow close the gap with Article 71 officeholders.
Two key parameters affect the calculations of the spine salary (SSS) structure and that is what is often negotiated; the base pay and the pay point relativity. The rest of what we receive as pensions or allowances is calculated based on percentages of these two. So the proposal from Organized Labour can be summarized in two parts;
1. The relationship between Base Pay and Minimum Wage on the single spine salary structure. Labour requested the government to move the base pay to minimum wage plus
10% as originally envisaged for the SSS structure. When that is worked out plus the current COLA of 15%, it's approximately 60%. Note that this has not considered the prevailing economic situation.
2. Pay point relativity. Since 2010 when the SSS structure was introduced, the pay point relativity has never changed. It remained at 1.7% ever since, even though the SSS agreement proposed that it should be moved upwards gradually to 2%. We feel that it is long overdue and this is the time it has to move from 1.7% to 2%.
All the above put together warrants an increment close to 140%.
When the proposal was tabled on 17th November 2022, the government's team weighed the implication, went into caucus, and came back struggling to mention their figure.
The Government proposed a certain 8% after the back and forth. Labour outrightly rejected the offer. The Government's team then requested to go back and critically examine the proposal and do a few consultations.
Initially, the government's team proposed to negotiate on the principle that Labour will be given some increment now and later give COLA like it happened this year, but labour rejected that proposal because COLA does not contribute to our pensions and that makes workers worse off when going on retirement.
Another request government made was to decouple the two proposals and develop a roadmap to address the pay point relativity. That proposal has also been rejected because often whatever proposal is agreed upon is not implemented. Labour wants both issues addressed.
The government did not give a figure that will enter the negotiation zone for proper negotiations to begin.
Organized Labour was not satisfied, and hence moved for an adjournment to next week, and it was seconded by the government.
The government moved 3 steps in the negotiation from 8% to 10% and now to 12%, but Labour is still standing at 60% for the base pay after which negotiations for the pay point relativity will be done.
On November 23, 2022, the government granted 15% which was rejected by the labour Unions.
30th November 2022 the government increased the percentage to 18% but the labour unions rejected it.
Labour Unions strengthened that they cannot accept anything less than a 60% increment.
The meeting has therefore been adjourned until further notice.
Thank you.
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