BAIC and Airport Authority may be left in the cold

By TAMARA McKENZIE

and

LINDSAY THOMPSON

Guardian Staff Reporters

Senator James Smith confirmed Monday night that an estimated 24,000 public servants will receive an extra $600 in their paycheques today.

"The arrangements have been put in place to make the deferred payment tomorrow as indicated to the public service," the minister of state in the Ministry of Finance told The Guardian.

Today's payment total an estimated $12 million; an additional $100 will be added to the base salary of all civil servants in January, bringing the total increase to $24 million, in keeping with a five-year agreement made under the FNM administration in 1999. Civil servants expected the increase in July, but because of budget constraints and a rising $2-billion deficit, the PLP government said it was not prudent to follow through on the deal.

Senator Smith said the government was not held hostage in making good on the agreement as promised. "Once an agreement is made with the government... they were told they would be paid tomorrow."

Public Services Union president John Pinder had told The Guardian on Sunday that if funds were not in the bank today, "the town would close" and there was "no ifs ands or buts about it." On Monday, he reiterated that.

Asked whether it was financially prudent to pay out such sums, Senator Smith said "it's no better time in the sense that we would preferred a year because we did not make any provisions in the 2003/04 budget for it so clearly when the payment is made this time, it would have some adverse impact on the budget, but not as bad as we predicted in the beginning."

He said part of the government's overdraft facilities will increase, but that the government has arranged the funding to be less expensive.

Asked how the government intends to recover this money, Senator Smith said it has several ways of funding requirements: running its overdraft facilities at the Central Bank, issuing treasury bills or government registered stock, and implementing a intensive revenue collection effort.

He said when the agreement was entered into, the economy was fairly buoyant, but after 9/11 everybody made adjustments except the public service.

Senator Smith said he was not aware of any layoffs in the public service in order to recoup losses.

Mr. Pinder expressed concern about whether employees of the Bahamas Agricultural and Industrial Corp. (BAIC) would also receive increases.

Senator Smith said he was not aware of the position at BAIC and whether staff are entitled to the same provisions as those in the public service.

Mr. Pinder said anomalies have existed at BAIC since October, 2002, and were to have been addressed but that has not happened.

"We are trying to determine when these payments will be made, as well as whether they would get this increase today. Presently we don't have a position on either of these situations at this time, and my biggest challenge right now is getting BAIC to sign off on making these payments," he said.

Mr. Pinder said he got the opportunity to speak with BAIC general manager Troi Ferguson and deputy chairman Godfrey Eneas on Monday, and they said they were discussing the anomalies and a response would be issued by the end of the week. Mr. Pinder said he has been told Mr. Ferguson is scheduled to take a vacation at the end of the week and will not be in his office until next year.

"If he thinks he will skip out on me and duck me, he won't be ducking anything, but I hope he would bring this matter to a close before he takes leave for the Christmas," Mr. Pinder said.

On Sunday, Mr. Pinder told The Guardian the union was struggling to ensure people from the Airport Authority were part of the agreement to receive an extra $600 today. "We had some positive talks with the minister (Glennys Hanna-Martin) on Friday, so for the most part, we think that this would come off also," he said.

Mr. Pinder said that in 2002, when the authority was established, staff who transferred from the public service were to receive all benefits, but this did not happen. According to Mr. Pinder, the civil servants who transferred were represented by the BPSU, but the authority only recognises the union as bargaining agent when it "suits their purpose."

Posted: Tuesday December 9, 2003