Govt tempers expectation in public sector pay review

Public sector workers should not expect “a double-digit pay rise or anything of the sort”, Chief Minister Fabian Picardo said on Friday, stressing the need to balance any increase against other government spending obligations.

Mr Picardo made the comment in a statement after meeting public sector union representatives ahead of the Budget session on June 30.

The Government is considering a percentage pay increase for the public sector as a whole, rather than a pay rise based on a fixed sum.

It will make any announcement in that respect during the Budget session in Parliament.

“I was very pleased to be able to attend today’s meeting,” Mr Picardo said.

“Two weeks ago I had to jump out of the meeting at the very last minute to deal with the then ongoing treaty negotiations.”

“As that process comes to a conclusion, I enjoyed being able to meet union colleagues again and share ideas about how these pay negotiations might be concluded.”

“As the representative of all taxpayers, not just those in the public sector, I explained the difficult balancing act that I have to do as Minister for Public Finance in the use of taxpayers’ money.”

“I know that the vast majority of our public sector workers understand this and they do not want the Government to spend more than the taxpayer can afford.”

“I also know that the vast majority of taxpayers, whether they are public sector workers or private sector employees, will not want the Government to do anything which undermines our ability to provide the best public services to our people, especially in matters related to education and health.”

“I therefore trust that our position on remuneration in the public sector will be well received across the board when I announce it during the Budget debate.”

“To be clear though, no one should expect a double-digit public sector pay rise or anything of the sort – although I understand that the unions may have pitched their bids high for the typical horse trading that traditionally ensues in pay negotiations in the private sector.”

Ahead of Friday’s meeting, the Government shared confidential information with union representatives to enable them to provide detailed feedback from their working groups.

Separately, the Government carried out the relevant calculations necessary ahead of an announcement in respect of increases in minimum wage and public sector pay during the Budget session.

No.6 Convent Place said any announcement would follow consideration of all matters put forward by the union representatives during the course of the discussions, as well as all relevant factors from the point of view of the Government.

“This will, obviously, include a balancing of average earnings across the board in Gibraltar, average earnings in the private sector and average earnings in the public sector,” it said in a statement.

After the meeting, union representatives from Unite and the GGCA told GBC the meeting had not gone as they expected but declined to give any further details until they had consulted their respective members.

They expect to call an urgent meeting to consult with the membership and decide on next steps.