PM Silveria Jacobs
~ Jacobs: proposal to unions reasonable, fair ~
PHILIPSBURG--The Council of Ministers will be meeting directly with civil servants on the conditions imposed by the Dutch government on St. Maarten for the liquidity support loan for the country to, amongst other things, finance the St. Maarten Stimulus and Relief Plan (SSRP).
Prime Minister Silveria Jacobs said on Wednesday that she will ensure that civil servants receive information on the matter “from the horse’s mouth” and “not only from the unions who have their own agenda.”
“We will send out a letter inviting our employees to an information session where they can ask questions and receive answers directly from the Council of Ministers. So, they can look out for that and the public will be updated. But at the end of the day this is an employer/employee situation,” she said during the live virtual Council of Ministers press briefing on Wednesday.
Finance Minister Ardwell Irion said during the same briefing that he had suggested to the unions that a 50-per-cent vacation-pay cut be made for this year and next year an additional 50 per cent cut in the vacation allowance of workers for a total of 100 per cent. In addition to this, uniforms will be cut and overtimes will be cut, but not for front-line workers.
In a letter to civil servants also on Wednesday, Jacobs said no civil servant should believe there is a conflict between complying with the law and serving the government of the day – and no Prime Minister or Minister should place the civil service in such an invidious position.
She said that since the inception of the COVID-19 reality and its effects on the economy of St. Maarten, Minister of Finance Irion, to safeguard the required liquidity to sustain the country, had prepared the SSRP. In addition to this, government requested liquidity support for the immediate recovery from the economic fallout due to the coronavirus outbreak.
As a result, St. Maarten will receive its second liquidity support until June 30, 2020, in the amount of NAf. 53 million, to be paid in two instalments: NAf. 24 million to be paid out immediately, and NAf. 29 million for salary support after St. Maarten has complied with the contribution of its employees and the adjustment of the graduated scales with respect to the SSRP.
She outlined the essential conditions for the funds set by the Kingdom Council of Ministers, which include St Maarten increasing the pension and AOV age from 62 to 65 ultimately July 1, 2020; an adjustment resulting in the decrease of the total package of labour conditions (salaries, (vacation) allowance, etc.) of Ministers and Members of Parliament by 25 per cent ultimately by July 1, 2020, and until further notice; and an adjustment resulting in the decrease of the total package of labour conditions (salaries, (vacation) allowance, etc.) of all employees, workers within the (semi-) public sector by 12.5 per cent ultimately by July 1, 2020, and until further notice.
She said the latter adjustment applies to all government-owned companies, and foundations or other entities subsidised through the budget of the government of St Maarten by at least 50 per cent.
“This decrease applies to all workers regardless of their salary, with the understanding that the gross salary after deduction is not less than the minimum wage. In addition, no indexation is permitted, effective July 1, 2020, and until further notice.
“On the pension and AOV age adjustments, please note that government has already been in the process to do these adjustments. Both pieces of legislation are already in the process and after due diligence will be sent to parliament for debate and approval,” the letter read.
Another condition is the salary and fee limit of all labour/consulting conditions of top executives working within the (semi-) public sector, including workers, consultants of all government-owned companies, and foundations or other entities subsidised through the budget of the government of St. Maarten by at least 50 per cent.
The salary/fee limit is equivalent to 130 per cent of the new salary norm (primary and secondary labour conditions) of the Prime Minister and applies to existing and future employees, workers, and consultants. Jacobs said the legality of these conditions was questioned from inception. General concerns were whether the unilateral and (temporary) decrease in salary of the (semi-) public sector by 12.5 per cent is lawful.
“Pursuant to the constitution of the civil servants, affectionately known as the Landsverordening Materieel Ambtenarenrecht or the LMA, the labour conditions of a worker/employee can only be amended if the employee/worker has explicitly consented to the change. Said adjustment resulting in decrease of salary is an amendment to the labour conditions,” she said in the letter.
“This government will do in accordance with our laws and procedures. Given the current circumstances, specifically the current COVID-19 crisis, it is in my opinion just to say that the proposal of government to the unions is considered reasonable and fair. The unions should be more reasonable and fair in their approach towards government.
“In closing, civil servants, please indulge me the opportunity to remind you, the good hard-working people of St. Maarten, though in the face of adversity – “We, who call S’Maatin our home, and see it as a place where opportunities exist, as a place where each citizen is empowered to realise their own strength to progress at all levels, should stand together in this time of crisis.”
