SHOULD Government move ahead with its proposed forced savings on the salaries of public servants, it could plunge Barbados deeper into a recession, warns president of the Democratic Labour Party (DLP), Verla De Peiza.
Speaking on this issue for the first time since Prime Minister Mia Amor Mottley hinted two weeks ago at the possibility of Government going this route as an alternative to job cuts, De Peiza argued there were greater factors to consider beyond the savings arithmetic. She contended that with the private sector already engaging in salary cuts and job losses, households which had breadwinners from each group were going to be in dire straits.
“A lot of public servants live pay cheque to pay cheque and a lot of them have household incomes cut because their partner has already been adversely affected by the cuts in the private sector as a result of COVID-19, or their jobs have disappeared altogether.
“We have a tradition of shoring up one another in families, so if a family member falls on hard times, the others will pool resources to keep them afloat. Therefore, to cut salaries, whether in real terms or otherwise, is to put pressure on household management and ability to function,” said De Peiza.