Bermuda’s two biggest unions are willing to work with Government to implement cost-saving measures put forward by the SAGE Commission.

Acknowledging that the Island’s $331 million debt burden is not sustainable — and that Government needs to slash its costs through a long-term strategic plan — both the Bermuda Public Service Union and the Bermuda Industrial Union have also put forward some revenue-generating ideas of their own.

The Savings and Government Efficiency Commission released its final report in October after spending six months examining ways in which Government could operate more efficiently and reduce waste. It concluded that a major overhaul of the Civil Service was needed.

The unions had previously expressed concern at the “far-reaching ramifications” of any SAGE recommendations and warned against job cuts among Government workers.

But in a joint statement last night, the two groups supported many of the commission’s core recommendations.

“We believe that a deficit reduction plan must be put in place,” the statement said, adding that it agreed with the SAGE view that any plan “requires a time frame that allows the economy to absorb cost-reduction measures”.

“The unions welcome dialogue with the Government on the development and implementation of a long-term strategic plan consisting of three to five years that will be beneficial for all Bermuda.”

Also supported by the unions is a recommendation that Ministries look to reduce funding of grants and contributions to organisations that are not considered quangos or a corporation.

And they also agreed that Government needs to examine ways in which revenue can be increased — suggesting that payroll tax relief currently enjoyed by some companies should be “revisited by the Bermuda Government with the understanding that one size does not fit all.

“Each company that is having financial challenges because of the recession should be required to make a business case as to the reason why they should be exempt from paying payroll tax,” the statement said.

“Based on the needs of the company, there should be a sliding scale reduction in payroll tax ranging from 25 percent to 100 percent, rather than the across-the-board exemptions.”

The unions also urged Government to bring about any proposed reductions in personnel cost through a similar method used between the unions and Government to negotiate the current Memorandum of Understanding.

“We find this process to be one of transparency and collaboration between the parties,” the statement said.

The unions also called for “a critical review” of the tax system, suggesting that a consumption tax “would be more equitable for all in Bermuda”.

“We agree with the Premier that collaboration is the only way forward, as the unions would like to consider ourselves as partners in assisting the country,” the statement concluded.

“It is the unions’ belief that a collaborative approach by all stakeholders should help to generate buy-in by our memberships to address the challenges that we are presently facing.

“A multi-year plan will assist the Government in asserting control on the country’s deficit situation and will allow the Government to take a proactive approach to managing the expenditures instead of being constantly reactive.”

At a press conference yesterday, Premier Craig Cannonier also supported the idea of collaboration, saying he wanted any debate on the commission’s findings “to be an open process — the start of a national conversation”.

“I encourage everyone who is concerned for the country’s future to join the conversation,” he added.

“Tomorrow we will debate the SAGE Report in the House of Assembly. Consultations will follow with stakeholder groups, civil servants, unions, the Tripartite Committee and the public through town hall meetings.

“Already many people and organisations have expressed their views. Many have recognised that we cannot continue on the path we’re on, and many have expressed fear that change will hurt them.

“My colleagues and I are fully aware of these fears, but we want to hear from people directly. As Government, we will listen and work to make change work for everyone concerned.

“If people are to fear anything, they should fear more of the same — standing still while our national position gets to a point where UK intervention becomes a possibility. So let’s embrace change, not fear it. There is no future without change.

“The SAGE findings offer us the opportunity to fix inherited problems; and to make sure we don’t burden our children with our debt. It is an opportunity to make change work for the common good, and to set the Island on a sustainable path to the future. That’s where we need to go.”