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Government has decided for a five percent pay cut across the board in salaries and wages as part of policy measures in the revised 2007 budget to protect fiscal stability and economic recovery. The five percent salary and wage reduction will apply to all the civil servants and Government wage earners, including the Police, Military, Prison and Forest Guard Personnels. It will be effective from March 8th, 2007 for all civil servants and for all the Government wage earners. The Acting Permanent Secretary for the Public Service and Public Sector Reform, Tom Lee said that though regrettable, this action was considered to be a necessary step taken by the Government, especially during a crisis like this when fiscal stability and economic recovery must be the priority, as through this the long term interests of the nation will be best assured and maintained. “ It is regrettable that a reduction in salaries and wages has become necessary but given that salaries and wages are by far the largest single component of Government expenditure, compromising of over 40% of the total operating budget, this was considered the most immediate source of relief. And it is impossible for the other sectors to sustain such a larger cuts without affecting the current level of Government services,” he said. Under the mitigation, he said the five percent reduction is less compared to that of 15% implemented in 1988 and 12.5% in 2000, even though the financial and economical conditions are worse this time. “The five percent pay reduction also compares favourably to the scenario observed in the private sector, where jobs have been lost and wage cuts of up to 50 % have been imposed,” he said. Mr Lee revealed that where necessary and appropriate amendments would be made to the relevant Regulations to effect the five percent salary and wage reduction for those in the Disciplined Services, Solicitor General, Permanent Secretary for Justice in respect for the Fiji Prison Service. He said officers and employees drastically affected by this reduction could put their grievances and request forward to the Public Service Commission. “Officers/Employees adversely affected by this reduction in pay and who experience financial hardships, may apply to the Commission through their Permanent Secretaries for possible redress. Those approaching the Commission must indicate the level of hardships encountered. The Commission will examine each case based on its won merit,” he said. The five percent reduction would not apply to officers whose salary is determined under Judges Remuneration and Emoluments Act and Prescription of Salaries Act, expatriate contract officers and recipients of basic pension under the pensions Act 1983. The alternative to reducing the pay of civil service is redundancy and a total loss of jobs. This will be more unsavoury than accepting a pay cut. Government emphasises though that the pay reduction will be restored as soon as the Interim Administration is able to afford it. Meanwhile, the pay cut is one of many broad measures undertaken by the Interim Government to see the equal distribution of resources. The other measures include the review of the Partnership Agreement with the Unions, the deferment of the implementation of the Job Evaluation Review for the disciplinary forces, a freeze on all new recruitments and creation of new posts and the reduction of allocations to some non-priority sectors. In many of these sectors, more resources are not the answer but the efficiency and better management are the keys. -End- |
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