Civil servants lose COLA for second time

| 21/08/2012

pay-packet-peanuts.jpg(CNS): Public sector workers are set to take a 3.2% pay cut next month for the second time during the last three years. Government is once again rolling back the cost of living allowance (COLA), which was returned last September, in order to achieve a surplus budget at a time when government spending has reached a record $650million. Although the premier has stated on numerous occasions that he will not cut the public sector head count he said during his budget speech Monday evening that civil servants had agreed to give up the COLA. According to a memo circulated by the deputy governor yesterday the pay cut will begin on 1 September.

Although existing health and pension benefits of existing public servants will now no longer be affected, including the housing allowance for police officers, all civil servants included the lowest paid will lose the 3.2%.

The deputy governor said he cut was regrettable but the measure and other minor changes for new civil servants would prove the least disruptive.

Franz Manderson said his aim was to protect the jobs of existing civil servants but that new posts would not be filled which would require public servants to take on extra work. Some 140 vacancies will be eliminated over the next year and the moratorium on recruitment will lead to a further cut in the size of the local public sector over the next five years.

The deputy governor also announced plans for a voluntary redundancy scheme in the service and said he would discuss this with the Civil Service Association.

“The civil service has many critics and I welcome constructive criticism as it helps us to examine what we do and how we can improve,” Manderson wrote in the memo which was sent to all public sector workers. “I am confident that a strong, stable and efficient civil service will continue to contribute positively to the economic and social well-being and development of the Cayman Islands.”

He praised the local service for their work in recent weeks with the “unprecedented circumstances” and “Considerable uncertainty” during the budget crisis.

However, Manderson warned that the reduced resources would affect the timeliness of services and a public education campaign would be required to educate the public.

See full memo here
 

Category: Politics

About the Author ()

Comments (20)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    The COLA should never have been re-instated in the first place. Wasn't it done on the basis that there was a "surplus" at the time?

  2. Anonymous says:

    Mac says he has to keep his slush fund so he can buy Pepsi for those who suffer undue hardship due to the loss of their COLA.

    • Idont know why says:

      I still dont know why the Premier removed the expatriate Tax.  PUT IT BACK.

  3. Anonymous says:

    Mac giveth…and Mac taketh away!

    As a CS i'm perfectly ok with giving up 3.2%. What burns me is that so many at the top should be giving up more…at least 5%. And MLA's at least 10% to "show leadership"…at least for a time…until finances might be improved.

    And (and this is a BIG and) Mac's Nation Building Fund (AKA as a Slush Fund) need to be eliminated! And one more entity that needs serious reduction in subsidies is Mac's Boatswains Beach Attraction (10+ Million dollars?). And Mac needs to be held accountable (Financially) for blunders like GLF and Cohen fiasco's…as he caused the millions paid out there.

    If we could remove Mac immediately…and hold him financially accountable, that would help a great deal with this budget…and Cayman's future financial outlook!

  4. Anonymous says:

    Everybody sing!

    "You put you big foot in, big foot out

    In out in out and shake it all about

    You do the hokey COLA and you turn around

    That's what it's all about

    Oh, the hokey COLA

    Oh, the hokey COLA

    Oh, the hokey COLA

    Diss the civil service

    Rah, rah, rah!" 

     

    • Anonymous says:

      The civil servants had their chance to do justice to the country a few weeks ago.  How many of them supported the OMOV?  This is what they get for not supoorting what would've rid us of the paranha that is on our back.  Stand up and be counted and stop letting less educated morons drag you down the dark lane.

      Stop being fooled, by false government talk, on the table, off the table publicity stunts.

      • Anonymous says:

        I think the expression is "monkey on your back" – not "paranha"(sic) – I think monkey is probably more appropriate given the decisions made although given the appetite for consumption the confusion is an understandable point of view !

         

  5. Anonymous says:

    When he says Civil servants had agreed to give up the COLA what exactly did he mean? I have been so busy I haven't had a day off for vacation or otherwise since the year started and I don't remember seeing any questions posed.

    Nonetheless, if it helps us get a budget, then fine, take the 3.2%, however, if I was asked, I would have voted to pay towards the health care cost, years from now, private sector people will forget about this 3.2% reduction and will still be lamenting that civil servants don't contribute to health insurance.

    Either way, I am going to go home with less money, but it would have been nice to get that monkey off our backs and make the pay reduction go to health premiums.

    On another note, I do hope that Monetary Authority, Hospital, Cayman Airways and all the other big statutory authorities will also be getting a pay cut. I don't care whether you called your previous staff increases raises or cost of living adjustment, the fact is, we are all public sector workers and if one group is taking home less pay, every public sector worker should chip in with an equal percentage to help the government cut costs.

  6. Anonymous says:

    What I don't understand is we have people in public office making quite a good amount of money…why not cut their salaries for 99% of them are doing absolutely nothing to earn it…

     

     

  7. Anonymous says:

    At what point does it stop being a COLA and start being whatever pay we agreed upon when I had to sign a contract?

    It's a pay cut, not a COLA rollback. 

     

  8. Anonymous says:

    Agree with poster 13:06, could not have said it better myself. Stop being so selfish and think about our country for a change. Go home retirees and contract workers and make room for the other civil servants to move up the ladder. Mr. Franz we take our hat off to you and some may not like it but glad to see you have your country at heart. God will bless you for making tough decisions now to save the whole country in the future.

  9. SKEPTICAL says:

    Well what happened with the two recently announced senior appointments ?

  10. Anonymous says:

    yes we gave up our 3.2% frans and it hurts but im willing to do it to help.

    we have too many civil servants over 60 yrs of age who can barely walk never mind work.

    can we pension these people off now please?  maybe a govt medical regarding fitness?

    also far too many top paid  positions in the civil service that can be trimmed down. "friends"

    positions need to be cut. lets work together on this .

    • Anonymous says:

      We didnt get it back in September it was December.

    • Anonymous says:

      I totally agree with the individual who posted is statement at 13.06.  It is my understanding that top positions are given to friends and foes from far and wide rather than the local Caymanians.  Not sure on the recruitment process but definitely needs to be looked into if Government is cutting back on funds.  The mentality of helping others who are not from here rather than their own is nothing but detrimental to Cayman Islands.  Every country in the world is beginning to look after their own.  Really Cayman please stop talking about trying to help your fellow person but action is required.  

      • Anonymous says:

        "It is my understanding…." always means that it is some probably totally spurious rumor that is going to be repeated.

    • Anonymous says:

      Maybe you do not know that every civil servant over the age of 60 has to complete a medical every year to enable them to continue working. Maybe everyone under the age of 60 should have to do the same. Age is only a number and many oldert civil servants perform better on the job. Hope that when you reach 60 your pension will be more than 500.00 per month. At this rate there may not be a pension. Enjoy!

      • Anonymous says:

        i know everyone has to complete a medical both over and under 60. i mean some kind of physical. and yes for under 60s too if you insist

    • Anonymous says:

      It is amazing how some retired (sick/disabled) civil servants are kept on to fill position, and other healthy retired civil serants are not given the same chances of re-employment.  Is it that they were not from the old boys/old girls school?   This is the very reason a number of civil servantsare heading for  the door and are willing to lose on their retirement pay package. 

      Nepotism at its best.