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Wage cut and pension freeze deal stalled

A wage cut and pension freeze for public sector workers has still not happened, nearly three months after it was agreed in principle.Bermuda Trade Union Congress president Shine Hayward yesterday said talks are ongoing over the move which would save Government tens of millions of dollars.Weeks of negotiating appeared to be coming to an end in February, when unions reacted positively to politicians’ pledge to share the sacrifice by cutting their own salaries.But Mr Hayward said legal ramifications concerning cuts for Police Association members have unexpectedly held up the deal.“It’s not gone through. We have still not made an agreement as yet,” Mr Hayward told The Royal Gazette yesterday.“We are still talking with the membership, there’s some work going on right now. We did expect it to happen more quickly, but some legal ramifications have presented themselves that we weren’t aware of.“We are hoping to be back around the table with [Assistant Cabinet Secretary] Judith Hall-Bean very shortly. The request has been put out there to meet as soon as possible, probably some time next week.“If it so happens that Government doesn’t hear from us what they expect from us, the ball will be back in Government’s court.”Government has proposed workers take an eight percent pay cut which would be matched by a freeze in their pension contributions, so that their take home pay would not be reduced.The cash saved would be vital for Government during the economic crisis, but critics have described the move as a raid on the future, claiming it would deprive the pension fund of contributions from workers and Government.Initial animosity towards the offer eased after MPs agreed to take a five percent pay reduction, which passed through the House of Assembly in March.In late February, Mr Hayward had stated: “The Trade Union Congress and the Bermuda Industrial Union have agreed in principle to Government’s proposal.“Each individual union have their own caveat and they are responding directly to Government with respect to their caveats.”Most of the unions in the BTUC, which now includes Bermuda Industrial Union as well as Bermuda Public Services Union, are in favour of accepting Government’s proposal.But Bermuda Police Association claimed it does not have the legal scope or power of a normal trade union and could therefore not accept the offer.A spokesman explained the Association could face legal action from its owners by going through with the deal.It’s understood some union members are reluctant to go ahead with the deal without police officers’ buy-in, because that would give police an unfair advantage in the pension plan.