BASSETERRE, St. Kitts – FIVE more months have been given to civil servants over the age of retirement to seek employment elsewhere before the government cracks down on “unsustainable” financial practices to reduce payroll costs.
During yesterday’s Budget Address delivered by Prime Minister and Minister of Finance Hon. Dr. Denzil Douglas, the need for cutting Government’s payroll without compromising the services provided was stressed.
In the past, Government extended the employment of many civil servants who were beyond the age of 55, as in many cases they had not planned properly for their retirement. However, the Prime Minister noted that this practise does not fit into the thrust of cutting Government’s wage bill and so these individuals will be the first to go.
“All persons who have reached the age of retirement or who make a decision to take early retirement will be requested to utilize their services in a more productive manner by seeking alternative employment in our expanding private sector or by taking advantage of the many opportunities for entrepreneurship that abounds in our economy,” Douglas explained.
SKNVibes contacted Chief Personnel Officer Torfrida Rochester to ascertain the number of civil servants who fall in this category, but after numerous attempts she informed that she does not have an exact number and would be unwilling to give an approximation.
Only in very rare circumstances, according to PM Douglas, where it is determined that persons possess “particular skills that cannot be obtained elsewhere in the Public Sector” will those persons be hired on contract in a consultancy or advisory capacity for a specific period, or on a job basis if applicable and justifiable.
“One of the conditions of such a contract would be the transfer of knowledge and skills to younger individuals who would assume those roles after the contract period ends. Therefore, by September 2010 all Civil Servants who have reached retirement age and are still working month to month will be formally required to retire. Permanent Secretaries are therefore expected to use the next six months to ensure that the functions undertaken by these individuals can be undertaken by current staff,” he added.
Some EC $2 million is expected to be saved annually through this measure.
Moreover, Douglas revealed his Government’s intention to reallocate resources from departments with an abundance of employees to others with insufficient human resources. This will ensure that all vital positions in government are filled without further hiring.
Douglas said, “No additional positions will be approved or filled in Government except if it can be proven that some attempt has been made to fill the position internally without the incurrence of additional expenditure.
“In this way, we intend to streamline the public service and attempt to dispel any notion that people in Government do not have sufficient work to do. We will now be expecting ministries and departments to do more with less. This will be an integral part of our Human Resource Modernization Strategy.”
As a part of Government’s wage reduction strategy are considerations for outsourcing, public-private partnership and part-time workers. Freezing wages and increments are also expected to be fully explored and implemented in 2010.
“We will also seek to reduce payroll costs through natural attrition,” Douglas said, meaning that payroll costs are expected to be reduced by natural means of reducing staff including retirement, resignation or death.
