By Sarah Lagan

The reduction in payroll concessions for hotel, restaurant and retail employees is an “injustice” according to Jason Hayward.

In a statement, the president of the Bermuda Public Services Union highlighted that employees will experience a salary reduction of 5.5 per cent, while their employers will pay no additional taxes.

“That is an injustice that must be corrected,” he said. “The employers should be made responsible for a portion of the applicable 5.5 per cent payroll tax rate.”

Mr Hayward also criticised Minister of Finance Bob Richards’s decision to suspend a portion of the Bermuda Government’s matching contributions to the Public Service Superannuation Fund (PSSF).

“The last actuarial report on the PSSF highlighted that unfunded liability was approximately $1 billion and, if all remained unchanged, the fund would run dry by 2045,” he said. “It baffles me as to why the Minister of Finance would seek to suspend contributions, further threatening the sustainability of the fund. It seems as though the minister is sabotaging the sustainability of the fund and the likelihood of public service employees receiving a pension in the future. Public service employees should have more control of the oversight and administration of their pensions in order to prohibit the practice of Government using pension money at their will.”

Mr Hayward said that he believed Government had failed to bring together the community stakeholders to help come up with solutions.

He added: “This is something that must be done during the next fiscal period. In my opinion, the Economic Tripartite Meetings led by the Minister of Home Affairs have been a complete waste of money and time. Unless all stakeholders are willing to pull together, this gem we call Bermuda will face economic disaster. We must overcome the political, racial and economic divide and work together for the betterment of the country.”