Chamber raises concerns over proposed public sector pay increase

The Gibraltar Chamber of Commerce has reiterated its opposition to significant public sector pay rises, expressing concern over ongoing discussions between unions and the Government.

In a statement first published in its Gibraltar Business magazine in April, the Chamber described current pay claims of 18 to 20 percent as “outrageous” and called for such demands to be strongly resisted.

It argued that any pay award must be accompanied by demonstrable efficiencies and productivity improvements through e-government initiatives and flexible working arrangements, noting that such measures have seen slow progress despite repeated commitments.

The Chamber stated that increased public sector pay would be funded largely through taxes borne by the private sector, where average earnings are significantly lower. It cited data showing that average pay in the public sector is nearly 25 percent higher than in the private sector.

The statement also raised concerns about the financial implications of the proposed EU–UK treaty agreement, warning that tax rises driven by public sector pay increases could reduce Gibraltar’s competitiveness and affect economic growth and employment.

The Chamber said its members were following the situation with “understandable concern” and urged the Government to take a cautious approach to any potential pay award.