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FREEZE WAGES!
Minister of Economic Affairs and Empowerment David Estwick has called for a national wage freeze.
Published on: 2/1/2010.
by TREVOR YEARWOOD
MINISTER OF ECONOMIC AFFAIRS AND EMPOWERMENT, Dr David Estwick, wants a national wage freeze.
He also suggests Government sell off its assets where possible to raise badly-needed funds.
The two ideas are part of his recommended strategy for helping Barbados
out of its economic crunch, he said during the third constituency conference, at Bayley's Primary School in St Philip last night.
"I will be asking Prime Minister David Thompson to articulate a position of a wage freeze," he told those who turned up to hear Minister of Housing and Lands Michael Lashley the MP for St Philip North, deliver his constituency report.
Estwick described the freeze as "something we have to do", adding: "We don't have a choice. We don't have the fiscal space" to do otherwise.
"We cannot interfere with wages and salaries," he conceded.
Given that, it was necessary to convince parastatal agencies "to start cutting back the fat" and looking for ways to make savings, Estwick said.
If this was not done, Government would have to be looking to increase subsidies to these entities, he argued.
He indicated that convincing these agencies to cut the wastage and reduce expenditure was going to be "difficult" because there were some unionised "entities" that "somehow believe or don't understand that an irresponsible trade union is a threat to economic growth and development".
According to Estwick, the trade unions "have to work hand in hand with the administration so that we get out of this [economic] problem".
Estwick also said he favoured selling off Government assets "that can bring in money without compromising services".
"This is not time to play around," he told the meetings. "You have to do what you have to do and my advice to Prime Minister Thompson is to look hard and when you find something, sell it if it can be sold."
Government, however, had to make sure that the productive sectors of the economy and the social services "are financed continuously", he said.
During the presentation that was punctuated by cheering, Estwick reported that Government was looking at establishing a Central Revenue Authority.
This would amalgamate all of the Government's revenue-collecting agencies, including the Value Added Tax (VAT) Office of the Customs Department and the Excise Tax Department of Customs, in addition to the Land Tax Department and the Licensing Department.
According to Estwick, the move is seen as leading to "significant savings for Government.
47 comment found!
Mauby Party? : 2/8/2010
Bajan B
When the USA sneezes ,we here in Bim catch a cold. Maybe in time you will see a new Tea, or Mauby,Party
Change... : 2/8/2010
When are we Barbadians going to stop blaming others and not ourselves? We have not changed our thirsty never satisfied habit of buying things. We have not changed our lifestyles. We have not changed our bad habits. We have not changed the way we think. We voted for change but that was for others to change not us. So we will continue blaming and never change for that is too hard to do. We like the easy road. We do not want to go work and actually work (that would be change). We do not want to stop the bad habits that would be change. We do not want to go against the norm....that would be change....I guess we voted to change the way we say the same old thing....
A New Cahnge : 2/8/2010
It is my opinion that Barbados has reached a stage where a new political party might be the best option for the future growth and development of BIM.
I know that the argument has been made many times that BIM is too small for three parties, however given the options that are being presented to the Bajan people at this time, it is clear that both parties have leadership deficits.
I consider BIM with a leadership deficit because I am sure that many Bajans have little confidence in either party or their leadership, Listen to the various discussion forums and get in touch with the people, they feel cheated and marginalized by the BLP and they feel tricked by the DLP. It is completely stupid to have a medical doctor at the helm of the economic development ministry during a worldwide recession; it says to me that they are clueless. The BLP obviously has a covert leadership fight brewing, one that threatens to undermine the ability to properly find and present credible candidates to the public.
Point blank, the people of Barbados know what to expect, the question now is whether or not the Bajan population has the stomach to say enough is enough and make a Pro-Barbados decision to vote in a new party. Both of these parties and their business as usual is well past relevance in the real world.
BajanB
WAGES A VERY BAD IDEA : 2/7/2010
A wage FREEZE?
OH HO OH AH HAH AH AH OH A AAAAAAAAAAAAAAHHHH
WELL WELL WELL WELL
To all those who voted DLP ,,, this serve wunna RIGHT
I anit feeling nothing for wunnna. You all were warnned , told and imformed that these dlp candidates were unprepared for government and only wanted power.
I wondering where all the WE WANT CAHNGE PEOPLE ARE TODAY?
THEY SILENT, VERY SILENT AND LOST FOR WORDS OR CONFUSSED.
A wage freeze is the worse course of action to take at this time. It will contract the money flow cycle throught the system and lead to further economic contraction by reduction in spending power to householders => reduce revenue intake via indirect and direct taxation=> more defecit.
THIS IS ALL SO FAMILAR TO ME, 1991 ALL OVER AGAIN, THOMPSON JUST PICK back up the s THE SAME OLD portfollio manual he had there back in 91 and continuing form where he letf off.
SERVE all those who voted for the dlp right, I cant understand how it is , that people are failing to see time and time again, that thompson statements on the current economy are persistantly inconsistence with the reality economic data, being board foward form other quaters
Any way I can't wait to see and hear this NEXT buget 2010, the YEAR THOMPSON CALLED A DEPARTURE FOR OUR ECONOMY,
HE HEH HEHHH AH AH A
, I just cant wait, hurry and bring it,
It must contain some more new measures, he planing to implyment, as direct by the IMF advisors beyond our shore
I looking forword to some change in a few areas postively for the government revenue ,
these include:
Increase bus fare,
Increase in VAT,
Increase custom duties,
increase tax on interest rate bearing accounts
increase Departure tax
Freeze on government hiring and new appointment to post
Canualation or removal of some governemnt funded programme
Reduction or canualation in whats might be classifiled as non priorty projects ( capital works)
AH Boy I just can't wait for this 2010 Buget
he h he he e ahahahahha aaahhh BOY
: 2/6/2010
Hark! I hear a gasping drone.
Dear Lord Protect us.
Wage what ? Freeze ? : 2/6/2010
I thought I heard "all is well with the country"? Stop bellyaching !! hahahahahahahahahahahaha
You wanted change, take the change because that is now all that remains in your wallets !
Proud to b a BEE !
: 2/5/2010
Have we forgot that the Union has already agreed to the freezing of hotel workers wages?
Freeze Wages : 2/5/2010
You give away $30,000 a day in free bus fares
You spend $6 million os summer camps
You raise electricity
You raise water
you raise telephones
You raise gas
You raise diesel
In fact you raise just about everything
Will someone please pinch me .... I thought I voted for the DLP so they could lower the cost of living!!!
Certainly not the purchasing power of my wages.
cassava : 2/5/2010
Cassava, cassava. Mr. Benn keep telling us Bajans to grow and eat cassava. With the wage freeze we will be doing that for certain.
Freeze Wages : 2/3/2010
Sell off the some assets, to raise "badly-needed funds", Mr Estwick!
What locally owned assets remain!
Is it not true, that Barbados is already nearly owned by outsiders, albeit non- bajans!
Mr Estwick, beware of appearing too keen to 'flog the family 'silver'.
Jerry 'loyal bajan'
SM1 4HU
10/02/03
In all fairness : 2/3/2010
The DLP has no control over the global recession and Barbados is not immuned from its fall-out. We all have to make sacrifices which might be painful, but which are necessary if we are to overcome and rise again. The remarkable thing about human beings is our ability to adapt to changing circumstances and to invent ways and means to overcome and to survive. WE WILL SURVIVE AND WE WILL OVERCOME, NOW IS THE TIME TO UNITE AND CO-OPERATE WITH ONE ANOTHER IRRESPECTIVE OF OUR POLITICAL AFFILIATIONS. UNITY IS STRENGTH, FOR UNITED WE STAND AND DIVIDED WE FALL.
To Toronto Bajan : 2/3/2010
Why do Bajan Public Servants expect to acquire duty free vehicles? Because it was promised to them in the DLP's election campaign which, no doubt, influenced the way they voted. I am not a Public servent myself, but a promise is a promise and one should not promise what one cannot be deliver especially when one knew that a recession was pending or had even started.
Freeze wages : 2/2/2010
...Well we must take it in stride. Ensure the freeze is from the top first. With Global warming not sure how long the "freeze"would last. But this seems better than retrenchment at this time. And remember to freeze the non performing cricketers pay as well.
Wage Freeze : 2/2/2010
Alot has been said. Truly, we were assured that Barbados was not in trouble, that we were weathering the storm. Some weathering. Whilst the DLP is not responsible for the crisis, I blame them for their response.. or lack thereof. They did not forewarn Bajans, they did not seek to take early steps, they took NO initiative. Now here we are. Down a slippery slope.
Freeze Wages : 2/2/2010
I'm confused. Why do Bajan Public Servants expect to acquire duty free vehicles when I have to pay freight costs for transportation of my new Honda from Alliston to Toronto (both in the same province in this country).
This is some expensive perk in recessionary times.
Toronto Bajan
Wage Freeze Again DLP??? : 2/2/2010
Does anyone remember the last wage freeze??? It was the last time the DLP held office. This is the last thing we need as a "hand to mouth" society as most of us here are. The government, leaders, CEO's, bosses and all comfotably living individuals livung in Barbados think this would be a great idea. This way the maid, driver, store room clerk and average joe don't need a pay hike. Come on!!!! We need price cuts, loan percentage reductions, assistance with elderly in need and you want to freeze the wages. Are you trying to get booted out of office???
: 2/2/2010
Here are the problems with our economy:
1. First year budget by the DLP that was ill-conceived that crushed the middle income earners caused people to decrease spending. Therefore they earned less revenue than they expected. This revenue loss is part of the reason some people cannot get Income Tax refunds as yet since decrease spending means less Vat, Customs and Excise taxes.
2. Free busfares for school children that was not planned and hastily implemented to make it seem as though they were doing something, even though it was not budgeted for.
3. Free daycare/summer camps that cost more to deliver than they are worth. The children learn nothing.
4. Increasing the price of gasoline and diesel continously.
5. Increase in all utilities after increasing all possible taxes except VAT thus far.
6. Essentially wiping out the purchasing power of the middle class/middle income earners who shoulder all these taxes and are the pillars of the economy.
7. Having leaders who know absolutely nothing about the tasks they were given/chosen who depend on 'advisors' and pay them with our tax dollars for advice on keeping/making us poor!
Wage Freeze for change : 2/2/2010
Well Well, I heard at Election time, A slogan which went like this, A TIME FOR CHANGE: well this is it A change in Water, Food, Gas, and any other hing the Government has right to. Thats what was vvoted for change.
FREEZE WAGES : 2/2/2010
Looks like it's bite-the-bullet/belt-tightening time once again whether we like it or not. When the current government took office,yours truly suggested via this medium,that all ministers voluntarily accept an annual salary of no more than $125,000.00.
The balance of what they would've been paid customarily would go into the national coffers to be used wherever the need was greatest. In other words,freeze the ministers' salaries for a specific period of time as a gesture of solidarity and oneness with all members of the Bajan family.Ministers don't really live "han tuh mout" like the rest of the populace. So getting by on a lesser salary wouldn't be problematic for them.
Also,if implemented,this would send a message from the incoming government,that they too were prepared to tighten their belts in order to prepare for the looming economic downturn. In other words,we're going to be "down with the people" as the nation attempts to cope with economic adversity.
Of course,this suggestion was made tongue-in-cheek as politicians in Bim are the same as their counterparts around the globe with few exceptions. They simply like to "lord it over the people" as Jesus put it,while living high off the proverbial hog as "Retired" opined. Bimmers are in for ongoing tough times and its only by the grace of a merciful God will we be able to survive and thrive.
Walk Holy, prople.
Who will this benefit? : 2/2/2010
This gov't was supposed to be for the poor people ie the average bajan. The average bajan earns minimum wage and there is little to no spending power. This does not make any sense economically.
1) In recession the aim is too increase spending to stimulate the economy.
2) the gov't will not benefit from incremental increases in revenue (taxation)
3)restore confidence in the economy which also gets people to spend.
This is another very myopic view by this gov't. This will only further increase the divide between the rich and poor.
uneven balance : 2/2/2010
this is a serious matter, there is no logic in this, he talkin bout freezing wages which is the MAIN source of income, YET bill going up. so just how is that going to work mr estwisk, if and when my wages freeze how i am i going to pay for rising bills???????? and wunna parties is the ones that suppose 2 got all the sense??????????
: 2/1/2010
As usual just another example of why this nation should change back because the dems definitely don't know how to run the country.
In the freezer : 2/1/2010
A high and freezing wind is blowing over Barbados, it is about to freeze wages but prices are so hot that it is impossible to freeze them at this stage. Watch out, we are entering a season of discontent- a winter of discontent and cold comfort for Barbadians.
BAJAN ARE AN AMAZING POPLE : 2/1/2010
My fellow Barbadians are an amazing people.
The world is in an global recession, the Super Power are running hugh deficits to comebat the recession.They had to pump trillions into their economies to save the financial sectors from collapsing.They have spent billions on trying to create jobs and save the housing markets.It is said that over seven millions workers have lost their jobs in the USA. The unemployment rate in the USA stand at over 10%. President Obama is doing his best to get the US economy back on track without any kind of support from the Republicans. People In Barbados are behaving as thou the DLP is responsible for the recession that is now having an effect on the Barbadian economy. It does not matter which political was in power at this time, the situation would be the same or made be even worse if the BLP was still in power. That is a fact of life. Barbadian want too much largess. No one want to sacrifice in these difficult times. People want to drive the latest and prettiest vehicles, but their don't want to pay fair road TAX. They want to waste water and don't pay for it, because BWA is owned by Government.Their have the most expensive cell phones and Blackberries, and dont want to answer the phones when you call them. We as a people need to be more realalistic and fair and put aside the Partisan politics and put our NATION first. Yes things are difficult for a lot of people in Barbados, people are under pressure, some people have lost their jobs. When we look out side o Barbados we get to realise that Barjans are still dong very well despite the pressure we are going through. We as a people should really be thankful to Almighty God. He has been very good to us as a Nation, but yet we seem so ungreatful. WE need to pay very close attention to what DR.ESWICK said about a WAGE FREEZE. If UNIONS and WORKERS do not take very small wage increases or no increse at all a lot of workers MIGHT END UP ON THE BREAD LINE.In this present environment Unions can not press employers to hard for wage increases. The private sector in Barbados has done a great job in maintaining their workforce levels. If the Union leaders are so stupid as to try to get wage increases at this time, it can work to the detriment of their membership.If large numbers of workers had to be laid off the snowball effect could have a devastating impact through the economy. Let cool and level heads prevail in these very difficult times.We have reach the stage of development we have reach because we are an intelligent people. let our intelligence beam in these very crucial times.
Freeze Wages : 2/1/2010
Mr Minister, This is a good idea if you are going to freeze prices and taxes. As far as I know Barbados dont have anything else to sell of, we already sold the entire Island to the highest bidder. Well we might start looking at selling off the best citizens we have first, these are all we are left with now to sell off.
Freeze wages : 2/1/2010
As a young voter i am quite concerned about the mixed messages that are being sent, but then again they are politians.But, as all have said this is not the time for business as usual.We are prepared Mr.Thompson to do what it takes, not to go the way of some of our neighbours.But the question is, are you?
Was Wondering : 2/1/2010
With all the price increases how will we survive with the wage freeze. I am among the working class poor, surviving month to month but basically broke.
I do understand about the worldwide economic crisis but i believe that the measures being implemented are short term solutions. Long ago we were experiencing a problem with the cost of living. Do something about that. That is why we voted for you.
And this idea about a central collection agency is neither here nor there when we have so many other issues. Amalgamated means removal of posts that are duplicated. I hope things get better.
Miss Independent.
strong medicine : 2/1/2010
In all the hurly=burly Barbadians must remember one thing, the economic mess that Barbados now finds itself in was created by the Barbados Labour Party. The Democratic Labour Party now has the unenviable and unpopular task of administering bitter medicine to clean up that mess. For almost a decade Bajans were being warned about wastage, ill-conceived projects and corruption but they thought it was all politics. Now we see the result of allowing the BLP to linger too long in the corridors of power.
We warned about off-budget spending by the BLP, giving no heed to the fact that the money had to be coming from somewhere, going somewhere and still had to be accounted for. Although such spending might have under-stated Barbados' debt, it was bound to explode in our faces at such time.
We now have to accept that we must ride this storm and look to put Barbados back on track.
If Bajans cannot see this, they could as well give back the Gment to the BLP and allow them to push the country completely over the cliff
which david should we believe : 2/1/2010
Is the DLP preparing to sell the family siver again? Here is the bigger issue. A few months ago Mr. Thompson told Barbados that his government does not have a cash flow problem. Now David Estwick say that government expenditure is a lot more than revenue. Isn't that a fiscal crisis or a cash flow problem? Which David should we believe? This seems like more confusion - just like whether Cabinet had agreed to build a new hospital or refurbish the existing one.
: 2/1/2010
TO cHRISTIAN minded Barbadian: This is not about party, this has resulted from the failure of sucessive governments to manage our economy properly. To cut their pay is one good suggestion, but will makes little difference in affecting them. They can still live high on the hog while we lesser mortals sweat. Don't you see how fat and prosperous they ALL (BLP,DLP) have become. Revenue collecting needed addressing a long time ago Mr Estwick.
Retired.
Selling off the family silvers . : 2/1/2010
Mr Estwick could do by putting a freeze on his mouth and on his salary .Yes i agree trim the fat . Trim all the louse that you all made promises to and have to make good . Trim all the un called for flying and do not forget to trim all the breakfast meetings and the working dinners . Trim all the give aways ,trim all the private sector props . Trim al lthe new buildings and roads yo uare doing at present . Then you would not have to sell off our assets.You are saying to sell off the family silvers .If yo uaccuesd the past government of doing so how then will you do it ?
You ae in the drivers seat if yo ucannot handle the ride with the twists and turns put down the bus !
Employees First : 2/1/2010
Amalgamations create duplication of effort. You find two or more persons with the same role and responsibility. During this Amalgamations of departments,the employees must be kept employed during this tough economic time. What benefit would there be to the various tax collecting departments if the tax generating sources are layed off.
FREEZE WAGES : 2/1/2010
If you are serious about this let us start with the leadership. Freeze your wages and the rest of the Ministers freeze the utilities bills do not ask us to freeze to death while others are living in splendour.
Freeze Wages : 2/1/2010
Water gone up, light gone up, telephone gone up and cost of living continues to go up. HE MUST BE MADD!!!!!!!!!!!!!!!!!
WOW : 2/1/2010
Glad you are a christian minded bajan at least the DLP dont have to pay it back from stealing from tax payers. You sure cannot measure incompetence if not you would realize that the DLP would be the school boys in this exercise.
Bajan boy
Get Serious : 2/1/2010
It is quite possible that this administration is making it up as they go along. I am curious why we have a medical doctor as minister of Economic Affairs. Are you serious? I know that Mr. Estwick is an intelligent man but at this point in the global economic environment I would believe that it requires someone with more intimate knowledge of finance and economics. Mr. Estwick, when the cost of living starts to outstrip the real income, it will result in the disempowerment that your ministry is attempting to address. A wage freeze will surely get you there pretty fast.
Everyone knows that the cost of living in Barbados is ridiculous, and it is getting progressively worse it is about time that the government seriously look at the cost drivers and address them properly before thinking about freezing wages, Increased fuel, road tax, licensing fees, Water, electricity, telephone, Food among others does not and cannot gel with a wage freeze or a second term in office.
I am neither BLP or DLP, but Junk is Junk. On a trip to Barbados last year I told some friends that in order to live comfortably in Barbados you need to make over $100,000 Bds, I now think that is a conservative number.
BajanB.
: 2/1/2010
Christian Minded Barbadian, you are such an idiot.... did the DLP CAUSE the recession? Did they?
Will DLP Ministers cut their pay by 25% : 2/1/2010
What about the cost of living? Since the DLP does not know what it is doing - why won't DLP Ministers set a patriotic example and cut their pay by 25% montly, until Barbados comes out of recession? This is simply a hedge to spur good governance and sound economic leadership. If the DLP is capable of good economic managment only then they will they get that 25% back. It seems fair that the DLP should pay for its incompetence.
DON'T SELL THE PEOPLE' ASSETS : 2/1/2010
Yes to wage freeze. No to seling off Government assets.I don't think Government have much assets to sell, what little they have, should be held onto. I don't think the current situation requires selling off anymore of the people's assets. We did it before to the detriment of the people. Let us not do it this time around.
wage freeze : 2/1/2010
After months of speculation it appears as if the government is finally admitting that it is cash strapped. It appears as if job losses are on the horizon. All temporary government workers must be concerned. I can understand a wage freeze if we were not recently dealt some heavy taxes and increased utility bills. As it is though some of us are barely surviving. What is the Prime Minister going to do to ease us who are suffering. Did anyone ever notice that each time the DLP wins the government they attack the wages. First it was the 8% cut, now it is the wage freeze. Wonder if the boys will cut back on the trips abroad and travel coach like the rest of us. Nah, that will never happen. Wonder when they will announce the increase in VAT. It can't be too far off now. Anyway, we made our bed and now we must lay in it.
Which David Must we believe : 2/1/2010
Where did this come from? Did PM Thompson not tell this country that his government does not have a cash-flow problem? So which David must we believe? Only last week the DLP was giving the impression in Parliament that it was doing something for Public Servants. Now we know: no duty free cars, no $40 million Reveolving Loan for Housing, no increse in pay - but a wage freeze, just like the IMF instructed. My questions are - is the DLP working for ordinary Barbadians or only for big business and the IMF? Secondly, which David should we believe?
Price freeze? : 2/1/2010
You talking bout wage freeze
But nothing about a price freeze
You promised to give we an ease
Said you would end the squeeze
But you joined with them doing as you please
And two years later we still ain't get release.
You say we must work together now
But I have one question for you, How?
Light gone up
Phone gone up
Water gone up
Road Tax gone up
Land Tax gone up...
Wage Freeze : 2/1/2010
The Minister of Economic Affairs and Empowerment needs a refresher in how to get ousted from Government!!!
CRAZY CRAZY CRAZY : 2/1/2010
The Goverment should put a wage freeze on their ministers and stop spending money like crazy,how can one suggest putting a wage freeze on the whole nation?this is the most crazy idea I heard coming from a goverment minister,guess both he and the other ministers could take the wage freeze and also take the mini bus to work to help have the tax payers.
how much more lawd, how much : 2/1/2010
Increase taxes in the 1st year, freeze salaries in the 2nd year. What joys can I look fwd to next year?
Change you CAN'T believe in!!!
FREEZE! Is this a stick up? : 2/1/2010
So the Government is looking to reduce the size of its revenue earning departments to cus back on expenditure. I don't know if to be thankful that they can't cut our wages ever again or be aware that I may loose my job because of consolidation of departments.
They said they had the answer for jobs. I did not know they had the answer for reduction of the number of jobs.
Central revenue-collecting authoriy : 2/1/2010
Hmmm. I thought we already had one of these, viz. The Ministry Of Finance, (presumably) ably assisted by said Minister Estwick. NOW we see the shortcomings of having so many government-owned companies, all little fiefdoms, all "sustaining" themselves, and those who wuk in them. However, I do thank Min. Estwick for the forthright reminder that it's time our unions go to bat, not just for their self-interest, but for the country. The party is over guys, and the Pied Piper over there... he's waitng to be paid. Tell our yung people, so they do not grow up "foolish-igrant", believing AS MANY NOW DO, that "Guvment got money". Government has NO money. They have OUR money! When they borrow, they sign in OUR NAME!
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