Pay cut starts next week
Mar 1, 2007, 16:44

All Civil Servants will have their salaries cut by five per cent effective from March 8th 2007.

Public Service Commission’s (PSC) Director of Employment Relations, Peni Naqasima said the pay cut will be made across the board.

Mr Naqasima’s statement follows an earlier announcement made by the Minister for Public Service Commission and Public Sector Reform, Poseci Bune, during a television interview yesterday.

The statement arose out of a special Cabinet meeting on Monday where the 5 per cent pay cut was endorsed. Cabinet based its decision on a submission made by the Minister of Finance, National Planning, Public Enterprises and Sugar Industry, Mahendra Chaudhry.

Mr Naqasima said details on the five per cent pay cut will be announced by the Minister of Finance, Mahendra Chaudhry when he presents the revised budget tomorrow.

“Once the announcement is made, then PSC will issue a Circular to all Government Ministries and Departments,” he said.

Mr Naqasima also explained that compared to the 15 per cent and 12 per cent mandatory pay cuts imposed after the events of 1987 and 2000 respectively, the proposed five per cent cut was a small sacrifice on the part of civil servants and Government wage earners and he appealed to all, including Public Sector Unions for their understanding in view of the financial and economic hardships the country was currently going through at this time.

Asked on whether PSC is anticipating industrial action from the Unions, he replied they will act once the Circular is issued.

Some Unions had agreed to forgo the 5 pay cent pay cut on the condition that the 60 years Retirement age is retained. But, the Fiji Public Service Association had strongly opposed moves on the 5 per cent pay cut, 55 years retirement age and the deferment of the Partnership Agreement on COLA.

Mr Naqasima further stated that it was wrong to link the five per cent pay cut to the other cost cutting issues like the Partnership Agreement and the introduction of the 55 years compulsory retirement age.

He strongly denied claims of a 15 per cent pay cut that was earlier speculated.

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