Gov’t prioritises prudent wage increases – Dr Jagdeo

General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo, has emphasised the importance of prudent management when it comes to wage increases.

The GS highlighted several long and short-term impacts of excessive wage increases on a country’s economy. 

He relayed that global and international market trends pose a significant threat to Guyana’s economy, since at any point they can be left at the mercy of price fluctuations. 

“Given our economies, when we are exposed to the vagaries of the international market for our products, we can see that at one-time price just dramatically falls, and then you are left hanging. Then you have two options before you. You either cut salaries or cut employment. So, to avoid being caught in that situation, one has to be prudent on matters of wage increases,” Dr Jagdeo said during a party press conference on Thursday. 

Dr Jagdeo made it clear that the government remains mindful of the pitfalls in this area, and has crafted a comprehensive, strategic plan to ensure that public servants get even more benefits. 

He underscored that sustainable and measured salary increases are directly linked to the maintenance of a stable economy. 

Therefore, the government has focused on increasing revenue through taxes and royalties from the oil sector while maintaining a balanced budget.

Several other strategies, such as immense job creation, diversification, public-private partnerships and impactful social support initiatives reflect its unwavering commitment to ensuring that all Guyanese can enjoy the best possible quality of life. 

The GS reminded that during its tenure, the People’s Progressive Party/Civic government has invested approximately $90 billion in wage and salary increases for the public sector. 

He said that since 2020, the government’s wage bill has increased significantly, from over $100 billion to $200 billion. 

“The wage bill under the PPP has grown by $90 billion for public service. People are taking home now $90 billion more per year than they were taking home in 2020. That is what it means in the whole public sector. $29 billion more goes into the pockets of the people who work in the public sector per year than were getting in 2020,” Dr Jagdeo pointed out. 

Addressing the opposition’s claim of a 75% wage increase for public servants, he dismissed it as a typical revisionist tactic, often used by the opposition to mislead the public. 

He reminded that upon assuming office, the then APNU+AFC government awarded themselves 50 per cent salary increases, showcasing blatant neglect for the public servants. 

Speaking particularly with regards to teachers, Dr Jagdeo reminded that the government is incentivising education, ensuring that all teachers are trained, and able to move up on the salary scale. 

The effect of this is twofold, since the quality of education improves, as does the salaries of teachers. 

“Six thousand teachers now are trained of the 14,000 a year on the enrolment and 2000 of those who are hired by us since we got back in office. So 6000 of them, nearly half are undergoing some form of training, fully paid for by the government,” the GS said. 

He added that the previous government had never increased the salaries for teachers by more than 10 per cent.

Within the context of the global heightened cost of living, the GS noted that the purchasing power of a 10% increase in teachers’ wages and salaries is significantly lower today compared to what it was in the past.

“Teachers’ wages and salaries were $15 billion. 10% at that time was 1.5 billion. Today it’s $4 billion. 10% is $4 billion. So, when you look at the quantum of resources to what, a 10% then versus a 10% now to be, a 10% then would be equivalent to probably about 30% [now],” GS Jagdeo explained. 

The Government of Guyana and the Guyana Teachers’ Union on August 21 signed an agreement which will see teachers across the country benefit from a 27 per cent increase in salaries over the next three years.

The new agreement also sees an increase in the number of concessions that will be granted to teachers by 50 per cent, in addition to the policy that all teachers who hold a substantive appointment as a senior master, mistress or above within three years of retirement and have not received a previous duty-free concession are entitled.

This multi-year agreement is a testament to the government’s unwavering commitment to providing for the needs of all its citizens.