Unite calls Chamber of Commerce statement on public sector pay "shortsighted"

Unite the Union has described the recent statement by the Gibraltar Chamber of Commerce on public sector pay as “shortsighted”.

The Chamber had expressed hope that the Government of Gibraltar would keep public sector pay awards “very low”. Unite has said this view is unhelpful and fails to take into account the wider economic context.

The union pointed out that public sector workers, who continued working throughout the Covid-19 pandemic, experienced a cost-of-living pay freeze from 2019 until the consolidated pay awards in 2024. Unite said not all workers benefited from these awards, and that public sector staff have seen a real terms pay reduction of more than 20 percent over that period.

The union added that private sector wages largely increased during the same timeframe, often exceeding IRP levels, due to collective bargaining. It also noted that gross trading profits for businesses have grown faster than wages in recent years.

Unite Regional Officer Donovan Correia said: “The Chamber’s press statement is at best unhelpful and shortsighted. Unite will make no apologies for seeking to better terms and conditions of employment across both the public and private sectors.

“Gibraltar should not be a low wage economy and we should be striving for quality jobs.

“Large parts of the private sector thrive off paying the minimum wage, which is way too low, and the misuse of zero hours contracts. This is why these two elements were in our pay claim.

“The statement also fails to recognise that not only have public sector workers experienced a double-digit real terms loss in pay since 2019, these workers spend in the private sector and the Gibraltar economy.

“More money in public sector pockets will mean more money spent in the private sector. The union remains focussed on achieving a decent pay increase for our members in the public sector.”