Log In

Reset Password

SAGE commission calls for independent government salary negotiators

Members of the Government-appointed Spending and Government Efficiency Commission SAGE are shown at a public meeting at St James Church Hall, Sandys in September. Leading the commission and the meeting is former insurance executive Brian Duperreault (centre). Shown from left are businessman Don Mackenzie, insurance executive Catherine Duffy, Mr Duperreault, lawyer Kim White and former head of the Civil Service, Kenneth Dill.

Some civil servants are being awarded “exorbitant” benefits packages with overtime pay that is “significantly higher than the norm in the private sector”, according to the SAGE Commission.

And Government employees have been able to secure generous deals through their unions because bosses negotiating contracts on behalf of the Government are often members of the union themselves, the commission revealed.

In its 140-page final report, which was submitted to Government on Friday, the commission pointed out that six separate unions represented around 5,300 Government workers employed in a slew of ministries, departments and quangos which were not necessarily linked to Government’s Human Resources Department.

“Agreements are reached based upon whatever each union can negotiate at the time,” the report noted, adding that each union had attempted “to negotiate to the highest standard of benefits available across Government”.

“There is no strategic framework for contract negotiations with unions, and there is no standard across the Public Service for negotiating union contracts.

“Civil and Public Service employees representing Government, as an employer, in negotiations with the unions, are union members themselves.

“Negotiating with the very union of which they are a member is viewed by many as a conflict of interest.

“Government employees who are members of a union should not be negotiating on behalf of Government with the union of which they are members.”

According to the findings, managers find it “difficult” to manage employees with multiple agreements and provisions, while under the terms of the Collective Bargaining Agreement, BIU workers are not subjected to performance appraisals.

“In numerous interviews, the SAGE Commission was told that Heads of Departments and managers were not consulted before agreements were reached and that the resulting agreements were difficult to implement,” the report stated.

The commissioners concluded: “Some of the negotiated provisions with respect to benefits are significantly out of alignment with best practices.

“The scale of benefits under the current Collective Bargaining Agreements are financially unsustainable — both wage rate increases and benefits).

“All Collective Bargaining Agreements must be reviewed and amended to be financially sustainable. Where appropriate, standardised benefits should be agreed which reflect best practices.

“Negotiations should avoid ‘pattern bargaining’, a practice by which unions use a particular agreement as a model on which agreement for other employees are based.

“Union contract negotiations should be aligned with Government’s stated strategic objectives.”

The commission recommended that an independent body conduct any future pay and benefit negotiations with the Bermuda Public Services Union, that some benefits should be “harmonised”, and that heads of departments and managers must be consulted prior to union negotiations.

The report also claimed that staff were retained and promoted even if they were regarded as “low performers”, while high performers were not always rewarded.

“Government employees are often not recognised for their performance — good or bad,” the report said.

“There are examples of serious infractions for which there have been no consequences.

“Performance appraisals are not taken seriously and not utilised effectively to develop the Government workforce’s talents and career objectives.

“Discipline is not applied consistently or as often as required by the CECC [Conditions of Employment and Code of Conduct] as read with the Public Service Commission regulations.”

The Bermuda Trades Union Congress is expected to deliver its response to the commission’s findings tomorrow.