At first glance, the draft national ordinance for the standardisation of top incomes in the semi-public sector currently in Parliament (see related story) does not seem unreasonable. Making more than 130% of what the country’s prime minister earns at –after all – government-owned or subsidised entities can be considered a bit excessive.
Moreover, although there has been talk of “new conditions” set by the Kingdom Council of Ministers RMR to phase out the 12.5% benefits for civil servants, this step was already agreed on earlier as requirement for liquidity support. It is largely based on the so-called “Balkenende Norm” in the Netherlands.
However, the impact should not be underestimated, because this involves 52 entities, some of which also compete with private businesses where no such limit exists. In addition, certain functions could require a level of expertise that might simply not be available at lower rates on the job market determined by supply and demand.
Aruba has already adopted the measure and received approval from The Hague to start giving government employees back 5% of the 12.6% reduction applied there. While defending the proposal, Prime Minister Evelyn Wever-Oduber named some astronomical amounts paid to executives in the semi-public sector to back her argument.
She has a point. An annual salary of 332,487 Netherlands Antillean guilders, close to NAf. 30,000 per month, should really be enough when balanced with responsibilities of the highest political authority in the land.
Nevertheless, there are legitimate concerns about brain-drain and possible legal implications based on contract law. A two-year transition period appears rather short, especially since the “grandfather clause” in the Dutch version was significantly more extensive.
One can understand not wanting to wait too long so the related savings are also realised soon, but any drastic intervention into the daily life of citizens should always take place in a gradual and well-thought-out manner.
