BASSETERRE, St. Kitts – DESPITE having a six-hour meeting with Prime Minister Freundel Stuart’s Administration, Trade Union Leaders in Barbados are still concerned that the 10% National Social Responsibility Levy (NSRL) would not be removed.
That was the announcement made by President of the Barbados Union of Teachers (BUT), Pedro Shepherd, who spoke with SKNVibes yesterday (Aug. 14).
Shepherd, speaking via telephone, explained that they have not seen or heard anything substantial that would point to the Levy being removed or decreased.
He stated that he is yet to sit and determine whether anything positive or negative was garnered from Friday’s (Aug. 11) meeting, which was attended by government officials, trade union leaders and members of the private sector.
According to the Union President, during the meeting the government had put forward its case to the Acting Governor of the Central Bank through the Director of Finance and Economic Affairs, who also made a presentation on behalf of the government.
Labour representatives, the unions and the private sector also made their presentation to have the Levy lowered.
“Out of it, all I can say is that there is a commitment on the part of the government and other social partners to continue the dialogue,” Shepherd said.
It was back in May that the government decided to increase the NSRL from 2.5% to 10% in order to close the fiscal deficit within the economy. That spurred the unions - Barbados Secondary Teachers’ Union, Barbados Workers’ Union, National Union of Public Workers and the Barbados Union of Teachers, along with the Barbados Private Sector Association - to launch several protest actions in the country.
The government was later forced to call an emergency meeting of the NSRL that was scheduled for August 18, but it was subsequently brought forward to last Friday.
The dialogues would continue, Shepherd said, pointing out that there is no specific timeline given, “but the NSRL has not been taken off the programme or agenda of the government”.
The unions have continued with their calls to have the Levy returned to its original figure or be placed at 5%, but the government has remained steadfast with the current 10%, Shepherd stated.
“They have said that they would take a review of it at the end of September to see whether it is working the way that it should. If it is working they would maintain it, if not is not working they would make whatever adjustments that are needed.”
The government maintains that in order for the deficit to be bridged and for public sector workers to get an increase – the first since 2010 - the Levy must remain in place.
Against that backdrop, SKNVibes asked Shepherd if the unions would continue to protest should the Levy remain at 10% after the review, to which he definitively said, “No”.
He added that there are other industrial actions that union members could take, but protests are the last resort.
Asked if there are other ways for the government to garner revenue to decrease the deficit, Shepherd retorted: “I believe that there are other options for the government to make money. The position of the government is that they have to raise revenue, and that is one way of doing so. If they don’t do that, then they would have to cut expenditure. And in doing so they would probably have to do layoffs.”
He however stated that the unions are fighting off discussions of layoffs.
“Of course, the unions would not want to have layoffs. So the unions are accepting, to some extent, the fact that NSRL is a revenue generating levy and is necessary. Personally, I think there are other options that the government has available to it and not dangle the carrot over the workers’ heads.”
Pressed for what options are available, Shepherd pointed to a better system in tax collection, which he claimed is the major lapse for loss of revenue.
