The report coming out of the International Monetary Fund (IMF) that it ‘failed to realise the damage austerity would do to Greece’ makes for an interesting observation as Barbados is negotiating its own brand of economic austerity. The moral of the story for Barbadians is simple, we need to solve our problems by leveraging homegrown knowledge capital – see article IMF admits: we failed to realise the damage austerity would do to Greece. .
The admission by IMF Chief Christine Lagarde brings back the memory of pre-2007 and how global credit rating agencies contributed to the global recession by feeding demand for helter skelter consumption and ignoring a financial framework built on a questionable financial market which continues today to peddle questionable securities the like of credit default swaps, derivatives and electronic trading to mention a few.
During the recent presentation of the 2015 Financial Statement and Budgetary Proposals minister of finance Chris Sinckler insisted it was a home grown effort. However a visit to the IMF website supports the position the economic prescription the government seems committed to is NOT home grown. The huge debt to GDP gives Barbados little or no wiggle room to ignore the advice of international financial agencies largely responsible for influencing credit rating agencies. Despite what the prime minister and finance manager would have us believe a good sovereign credit rating does matter. The junk credit rating of Barbados makes borrowing on the capital market an expensive undertaking. Ask the Cahill people!
The news making the rounds this week and publicized at the BLP Tyrol Cot meeting last Sunday night: the government has been ‘analysing’ an IMF report on the state of the Barbados economy for about three weeks since the delivery of the Budget, and is yet to give permission for its release to the public. It supports the widely held view the Stuart government is inclined to manipulate information and engage in a lack of transparency for political advantage. The minister of finance was forced to hurriedly confirm the IMF report story the Monday after the BLP Tyrol,Cot meeting. What should be 0f interest to Barbadians – minister Sinckler confirmed the IMF is still concerned about the level of quantitative easing being practiced by the central bank of Barbados and government.
On a related note: the industrial relations climate in Barbados is ‘hotting up’ and it makes one wonder how effective the social partnership has been in the last couple of years, and we add minister of labour Esther Byer to the mix. BU suspects both unions have not forgotten the ‘black eye’ given to them by government and private sector in recent years. NUPW must still be smarting from the NCC matter and under a new management seems to be bent on retrieving its flagging reputation. There is also the Caswell Franklyn factor whose union has been making more noise than the two which are more established. It is unfortunate both sides have reached a point where dialogue has broken down, the last thing Barbados needs at this time is a national strike and low productivity. In the case of the BIDC – the current matter which has triggered industrial protest – it seems to be one better left to the law court to determine, but any issue maybe a good issue for the union to claw back its influence and membership.
The perilous state of the economy requires Barbadians to leverage the benefit of the large investment in education by resolving our problems. The rising tension in industrial relations in Barbados is symptomatic of a dearth in leadership in all facets of society.
290 responses to “Is the Economy Improving and Why Strike Now”
A fiery Mcdowell.
is this phasing a new form of collective bargaining, never in my political life have i ever heard of a phasing process during a strike . i do believe strategies are drawn out before the striking process begins detailing the strikers on what and how the plans would be put in place,now it seems as if the Unions are using a wait and see strategy as to what answers the govt going to make in accordance and which plan they might use activate and strengthen their positions ,in the meanwhile the striking workers are kept in the dark awaiting daily meetings by the Unions to give updates about their a strategy which slows down their momentum and burns holes in their objectivity and in the interim gives govt enough time to pursue available and viable avenues to boost their position within the law for clarity .also what must not be forgotten is the awareness of a weary and tired public after days of this back and forth and no resolution saying enough is enough forcing the unions to flounder while wavering back and forth as to what strategy are the best to send a strong message with out upsetting the economy.
In the meanwhile govt should remain steadfast having time on their side after today’s unfolding and revealing events that bolster and strengthen their hand out of a cause of Unions not having a strong long term formulated strategy that can weaken in short term or long term the economy of barbados,
Let us give credit to the government for bringing almost if not all the unions in Barbados together today.
Mr Hopi, what does ” a tough father who loved and nurtured” have to do with your self absorbed, arrogant BU persona. Not one iota I suspect. Lots of us had nurturing, hard driving fathers and surely not all of us are like you, now are we!
I never try to prove anyone wrong on BU…no one died and made me chosen Oracle. I give an opinion; sometimes agreeing and sometimes not.
And what does the economics of Greece have to do with intentions of someone trying to please? Startling interpretation from the man who unequivocally labels others’ opinions fluff. Amusing to say the least.
Look Mr. Smartypants, I really don’t know about this nonsense re ” come across as being intelligently informed”. We are as informed as we want to be based on the reams of readily available data.
The info is clear re Greece’s growth, unemployment and tax collections issues prior to joining the Union. In the mid to late 90’s the ratio of public dept to revenue started to spiral over 100% . Of course yhat by itself is not a death knell if the economy is growing and cost controls are in place but Greece was never a test case of government fiscal prudence.
But if your economic high IQ advises that all their problems stem solely from the financial crisis, then more power to you.
I am surely not an economist. I just try to use my ‘mental midgetary’ to understand the data and make judgements from that.
So why should I ever try “to prove [you] wrong” when the facts from those who know do that quite well I was merely drawing attention to your rather one-sided views.
Only a few hundred turned up for the March yet the PM, Suckoo, Inniss and all the choristers here on BU can’t hit a note imagine when thousands hit the streets.😆
The govt does not need any form of credit from the unions in reference to this issue,The Unions needs the govt as much as much as the govt needs the Union, That is why the Unions made a grave mistake in blowing this issue out of proportion,and the question now boils down to how long can the unions hold out even if they use marginal attempts to disrupt the barbados economy without marginalizing themselves from a population , For surely the citizens cannot be left out in the Union strategy as not to offend or to distance/ this is not an open and shut case , with the possibility( of) the Unions overplaying their hands in their “timing” and having supporters losing interest in their objectivity if this matter drags on too long and impact the lives of ordinary citizens
De Ingrunt Word July 6, 2015 at 7:38 PM #
“The info is clear re Greece’s growth, unemployment and tax collections issues prior to joining the Union. In the mid to late 90’s the ratio of public dept to revenue started to spiral over 100% . Of course yhat by itself is not a death knell if the economy is growing and cost controls are in place but Greece was never a test case of government fiscal prudence.”
I have to agree with your above comments, De Word.
Greece was living beyond its means before joining the EU in 1981. Adopting the Euro as the single currency in 2001, made it much easier for the country to borrow “cheap loans” to finance the economy, pay an oversized public sector and pay for the 2004 Athens Olympics. For example, between 1999 and 2007, there was a substantial increase of 50% in public sector wages.
In 2004 the country’s budget deficit was reported at 6.1% of GDP, which was more than double the euro-zone limit, and the debt was recorded at 110.6% of GDP. In 2005, Greece became the first country in the EU to be placed under fiscal monitoring by the European Commission.
The gap between revenue and expenditure was exacerbated by a very weak tax collection system, which made the environment conducive for tax evasion.
Remember, Greece’s budget deficit was 6.1% of GDP. Hence, in an effort to meet the 3% of GDP requirement of members of the EU, successive governments concealed loans. Then Finance Minister, George Alogoskoufis, admitted the true scale of Greece’s budget deficit was massively understated enabling Athens to fall below the qualification bar and into the EU’s single currency.
@ D Ignorant W?……….Again,You are talking shite, pure unadulterated shite about the CAUSE of Greece’s economic problem. Pure shite. Like I said you fluff all over the blog because you want to appear as if you have something intelligent to say. You are not like me cause u come across as some blasted wuss…but then that’s called intelligence. I’m arrogant cause I find ur kind intolerable with ya petty-ass kiss-ass weak mindset. You just pulling shit outta thin air to appear to be other that what u really r.
Yes my ‘economic high’ IQ says that the Greek problem stems from the 2008 FC. What does ur say? No fluff pls.
Look at the condition of this world and it got like that because bitch-ass ‘men’ refuse to stand up and be men they were meant to be. Everyone wants a seat at the table so they can have a nice clean civil ‘debate’ (because they’re intellectuals)while the blasted world going to hades. To hell with civil fucking discourse.
Some of the most stupid people in the world are so-called intelligent book-learned monkeys….dumber than a box of bricks. Shit right infront of them and they can’t see it because they’re blinded by some blasted delusion of grandeur. And don’t think for one minute that I’m new to the BU. Blasted Simp.
******That bird-beak bitch Christine Legard berates the Greeks about not paying taxes while she takes home almost $500K + over $80K in salary and allowances TAX FREE. Talk about hypocrisy to the heights. Blasted criminals. Bet de Ignorant Rasses bout here ain’t gonna call for her to fork over her due.******
It is amazing how people construct a narrative and then respond and answer questions about the said narrative and try to pass this off as truth and facts. The ac character on this blog seems to be cast in the mould of one who constructs such narratives. Really crazy !!
Sad to see the unions have boxed themselves in a corner.
The unions are demanding that BIDC workers are reinstated.
The BIDC workers who have been retired…..wished to be left alone to enjoy their retirement
money…..like Dennis Clarke and Sir Roy!
That is why all the said BIDC workers who retired cashed their cheques.
Licorish Caswell Franklyn and Akani Mc DO. ALL would have done the same damn thing!
Why David?
Serious business. Union leaders ent mekkin sport.
https://youtu.be/ZWOET4WQq7A?list=PL00rtqNSfwotYHMsHI3ALgRlJyqYH4DhU
Isn’t Barbados and every other nation living beyond their means too? More shite.
@David……..I’m sure you have better things to do than moderate my writing, so I will gladly un-burden you. Carry on.
@Hopi
Blame WordPress filters.
It seems that this guy is suffering from a deficiency of intellectualism. Apparently he has an inflated sense of his own importance and an obsessive need for admiration. Consequently, in an effort to boost his ego, he read a few books and on-line articles and regurgitates the knowledge contained therein to impress upon others that he is an intellectual.
Just another idiot who is under the mistaken impression that using convoluted phrasing is a sign of intelligence and higher learning.
Unfortunately, BU provides a forum for all, even the dull and ignorant, they too have their story.
@Fractured BLP July 6, 2015 at 6:25 AM “While doing my usual early morning walk this morning, I met Akani Mc do – al…To my utter surprise, Akani burst out crying and turned the placard towards me me and persons using the road at the time with these words in bold print…“I AM SORRY BARBADIANS, I NEVER WANTED TO STRIKE. I WAS MISLED BY A MOTLEY CREW. PLEASE FORGIVE ME”
Dear Fractured: You are such a liar.
@Only Asking July 6, 2015 at 4:18 PM You are wrong Jeff Cumberbatch. Entities in Barbados can discriminate base on age.
The current minimum working age in Barbados is 16 and the mandatory retirement age in Barbados is 66 1/2. If is unlawful to refuse employment to anyone between the age of 16 and 66 1/2 because of their age. Jeff Cumberbatch is right. The NUPW is right. The BIDC is wrong. If this case goes to court the BIDC/the government will lose.
@Hants July 6, 2015 at 11:53 AM “Who determined that a person should retire at age 65? What is the rationale?”
It is 66 1/2 Hants not 65. It is based partly on custom and partly on life expectancy. and partly on acturial projections, that is how many people can over the age of 66 1/2 can a society afford to support and how much money do we need to continue supporting them until their expected death at age 75.
I worry about youth unemployment, because the young people are the ones with children to raise and mortgages to pay.
But I also wonder can we afford to send people home at 60 when the demographers say that these people will live on average for another 15 years?
And even though some of the fools on this blog, and some in Parliament as well as saying “they have their pensions, let them go home” I worry that the workers are receiving a reduced pension because of early forced retirement, and I worry as well about what inflation will do to the value of their pensions.
Because Hants unlike the Canada Pension Plan the National Insurance pensions are NOT indexed to inflation, simply because Barbados cannot take the risk of offering indexed to inflation pensions, because unlike Canad we are not blessed with huge natural resources.
If the NIS runs short before these forced retirees reach age 75 we cannot simply sell more oil or gas or or uranium, or lumber of wheat or electricity as Canada can.
And 15 years down the road some of these people may face very real hardship.
@Fractured BLP July 6, 2015 at 10:21 PM “That is why all the said BIDC workers who retired cashed their cheques.”
Dear Fractured: Did We Jonesing fracture your skull already? Of course the workers cashed their cheques…Duh!!! If my employer or former employer gives me a check with my name on it of course I would cash it too…duh!!! It is my money ent it? BUT by cashing it does not mean that I agree with my forced retirement nor do I agree with the sum of money offered…and accepted until I can get my union or my lawyer on my former employer’s @ss.
I don’t know where you live by most of us live in the real, real world…a real real world in which we know what Cabinet Ministers mean when they say “I got bills to pay too” and a real real world in which we anticipate that other state and para statal agencies will attempt to lay off more over 60 workers…and in real real world in which we know that the private sector will be only too pleased to follow government’s bad example and start laying off their own over 60 employees
@millertheanunnaki July 6, 2015 at 4:53 PM “You can always claim that ‘the BLP made the Dems do it”
The BLP is not completely blameless in this. We all remember when the BLP government used its 2/3 majority to push through legislation to say that government could not cut any civil servant’s salary.
Well now the DLP has no wiggle room. They cannot cut anybody’s salary, but they can [unfortunately] terminate people’s employment. And of course the DLP does not have a 2/3 majority in Parliament and so cannot correctthat bit of BLP malice.
Simple Simon [neither B nor D]
To Whom it might Concerned
govt must come toe toe if cooler heads does not prevail. The strength of a man knoweldge lies in their wisdom which dictates common sense and not by the use fire power guided by revenge and anger.
Interesting to read the comments here and elsewhere. Where is the sense/logic in baiting the unions? We know they called out certain departments, it was not a national strike. Why bait the unions in and see phase II a pull out of the air traffic controllers, the port and other critical government agencies, not to mention from the public sector. Are we stupid?
Get in there and discuss the matter and begin the process of discussion which has to happen anyway sooner rather than later.
To the above comment
The govt is not baiting the Unions. the unions seems to have laid out a strategy to bait and coerece the govtt to give in to their directives rather than being perspective and with the full understanding that circumstances at times negoitate whose and what and where directions shall be taken . Calling out govt workers to dismantle and disrupt a weak and fragile economy is absurd and smacks of the kind of commonsense which borders on a self interest that accomplish little or nothing.
Why do I have the feeling that Worrell and Sinckler would welcome a strike at this time!
@ Gabriel
“Why do I have the feeling that Worrell and Sinckler would welcome a strike at this time!”
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
…a strike, a storm, a meteorite ….. any shiite that will provide excuses for our state caused by their thieving, mismanagement and downright idiotic actions over the past eight years.
The Union and BLP are doing the exact right things….. targeted actions which HIGHLIGHT the DLP’s idiocy and incompetence …while leaving them to stew in their brass bowlery…
LOL
…you think um can be easy going out in public every day when everyone except AC, Fractured and Dompey looking at you as a dishonest JA?
…shiite man – Dat would KILL Bushie wid stress…. 🙂
Once one or two of them succumb …problem solved…..!!
Jerome Walcott say Worrell over 70 and Freundel just renew his contract with the blessing and approval of the Minister ‘o Labour Byer.Wunna think that young fella McDowell ain’t seeing the ball as big as a breadfruit?And what about Atlee Braffit.He en pushing 81 and running things at Waterworks!Freundel and Byer are 6 for Paddy and 4 for Knight.
Just listen!to the nonsense from the flat foot mongrels of doom and gloom now sitting in high judgement after years of yearning to see there country crumble. Well strike or no strike it will not happen .Just carry on smartly with your piss parade but be careful for what u wish and asked for remembering that in the long run the price which will be paid to rebuild would be heavy and just like Greece the debts would still have to be paid and the debtors would be unforgiving
G’morning David et. al.
Interesting times indeed!
Will the unions get their balls back?
Will the law trump custom and practice?
Does legally right make it procedurally right?
Will statutory boards continue do as they like on the fringes of the PSA and the ERA?
Does the Social Partnership even still exist?
Will the unions allow themselves to be blamed for the inevitable economic contraction?
Shall the “children” lead us?
Is this a tipping point or more noise?
Will the sleeping giant awake?
This is a script made or Hollywood.
Just observing
The following news story was taken from the “Fox News” web-site:
“In Barbados, 3,000 people rally against what they assert is age discrimination by government…”
Published July 06, 2015 Associated Press
BRIDGETOWN, Barbados – About 3,000 chanting protesters took to the streets of Barbados’ capital Monday to join a union-led rally against the recent dismissals of about a dozen public workers nearing retirement age.
Sanitation and other services were disrupted in Bridgetown during the rare street demonstration by government clerks and other public workers. Trade union bosses led chants and protesters carried placards reading slogans such as “Respect workers’ rights” and “Get it right or we will fight.”
The National Union of Public Workers organized the rally in protest against last month’s firing of 13 workers at a state-run development agency. Those workers were all 60 years old. The national retirement age is 67.
Union president Akanni McDowall said members are fighting against blatant “age discrimination.” They worry that other public agencies could unfairly dismiss public workers nearing retirement age unless there is an organized response.
Public workers at ports, the water authority and the national bus service were not asked to join the Monday protest. But the union leader warned that could change.
“Let it be known that if we do not get what we want we will be calling out all of the workers in Barbados,” McDowall said.
The union is demanding that the 13 workers go back to work or get compensated for seven more years of service.
Prime Minister Freundel Stuart said disruptive street protests were not in the best interests of the island’s 28,000 public workers and could damage the economy.
Stuart called for “all of the remedies at our disposal” to be attempted to resolve the differences between the two sides.
@ David,
http://news.nationalpost.com/news/canada/canadian-politics/ontario-downgrade-by-standard-and-poors-called-hardly-surprising-after-years-of-warnings
@ac July 7, 2015 at 7:59 AM #
“Calling out govt workers to dismantle and disrupt a weak and fragile economy is absurd and smacks of the kind of commonsense which borders on a self interest that accomplish little or nothing”……………………..
I thought the economy was stable and on a growth path.
You morons are so LIED……..you do not even remember the last lie you told!
Seriously ?
http://www.barbadostoday.bb/2015/07/07/let-us-reason/
@Hants
What is unraveling in Barbados is an embarrassment and is dismantling all the gains we have made post Independence.
Prodigal Son July 7, 2015 at 11:20 AM #
“@ac July 7, 2015 at 7:59 AM #
“Calling out govt workers to dismantle and disrupt a weak and fragile economy is absurd and smacks of the kind of commonsense which borders on a self interest that accomplish little or nothing”……………………..”
“I thought the economy was stable and on a growth path.”
“You morons are so LIED……..you do not even remember the last lie you told!”
+++++++++++++++++++++++++++++++++++++++++++++
Hahahahahaha
Good one, Prodigal.
“Explaining that the International Business and Financial Services Sector is very critical to our economy and society, the Minister noted that although tourism is doing its part, this particular sector was extremely resilient -”
These two industries are at risk of being destroyed or severely damaged.
It would be prudent for Barbados to develop more sustainable industries.
uh oh!
http://www.nationnews.com/nationnews/news/69603/sanitation-workers-strike
And why are they skinnin dey teet ?
@ac July 7, 2015 at 7:59 AM “the kind of commonsense which borders on a self interest that accomplish little or nothing.”
Every human being [except one and he is sitting on the Father’s right hand] is self interested to some degree or another. We could not survive unless we are self interested.
Should people really sit down and keep quiet wicle the bread is being pulled out of thier minds. Are you some kind of joker.
Have you ever tried pulling a bubbie out of a babie’s mouth? Even babies without teeth will clamp down and BITE with their little hardened gums.
VOB has notified the public that thee will be no garbage collection by the Sanitation Service Authority for th erest of the week.
Maybe this is phase 2.
If you ae not recycling your clean plastic, metal, glass, newspapers and cardboard boxes start doing so now.
Garbage strikes are never pretty, and they never ever smell good.
Methinks the Minister of Labour is in over her head.
Methinks the Prime Minister is disengaged.
The Sanitation workers are out.
Let the dead bury their own dead..or let Donville, Esther, and Freundel tek up their hoes and forks and head down to Westbury.
And if Ronald dares to have us shot or our heads cracked…then our dead bodies will lay in the streets in the 90% head and the 90% humidity.
Real, real good for a tourism based economy.
Well seriously folks what difference would it really make if the economy
was strong the outcome of devastation would still be thee same since its main driver is tourism and a strike would cripple the economy due in part of its negative impact on the tourist industry which is soley dependant on people.Yes any one with a thimble worth of commonsense would realise the gravity of a strike which would turn people awayfrom our shores.a grave mistake that the Unions would have to shoulder and one which the people would not forgive or forget.The strength of the economy depends on tourist as is evedient bythe stagnation and slow progress in past few years to the economy..Yes the economy have started to rebound and it is a must and a true test patriotism under an umbrella of intelligence and not politics to destroy and divide
@Simple Simon July 7, 2015 at 1:48 PM “keep quiet wicle the bread is being pulled out of thier minds.”
CORRECTION: Keep quiet when the bread is being pulled out of their mouths.
@ac July 7, 2015 at 2:24 PM “the economy have started to rebound and it is a must and a true test patriotism under an umbrella of intelligence and not politics to destroy and divide.”
So if the economy is tryly rebounding why the need to force workers out at 60. Folsih me I thought that a rebounding ecomomy needs more workers not fewer.
And if wunna DLP Parliamentarians, and foolish hard liners like ac want to show who is a true patriot, let wunna take the same up to 42% cut that wunna asking of ordinary workers.
Then would be a test of true patriotism.
Wunna running scared?
What for?
After all the unions did not threaten to shoot anybody or crack anybody’s head.
When wunna threaten to shoot we and crack we heads we kept our cool. We did not threaten back, neither did we run anywhere.
And Simple, the PM of this country who is responsible for national security of us, the people, sat in his seat and did not reprimand the moron………….not a word from any of the other MP’s including the one who is supposed to be doctor of divinity!
I love how the partisans on this blog who have obvious political motives are rallying behind the Mottley backed NUPW executive in their folly to stop garbage collection over 13 BIDC workers.
We are all taxpayers and we have statutory corporations that are drains on the treasury and have been for years and need to be restructured. Either user fees or cuts in expenditure (including staff). We can try as Donville and the BIDC are doing to do it in a structured way or as Owen Arthur called it privatization- either way, there will be dislocation.
Akanni McDowall might enjoy his five minutes of fame, BLP mps will seek to hang onto the coattails of the marchers and BU bloggers will have their say but at the end of the day, if God forbid Mottley ever get the reigns of power in this country- the result will be the same at all these statutory corporations : User Fees, people going home or a little bit of both.
It cannot be business as usual and the Union must understand that statement works both ways.
@Bajanfuhlife
You are saying Mia is also influencing the BWU, CTUSAB, Unity and the others?
I support the fight for no age discrimination by the Union. Give the workers who want to come back their jobs back. I also want the Union to speak to their members about a fair days work for the tax payers money. I see so many glaring examples of wastage of man hours by civil servants. Every body would find an excuse for picking on the small man but it is the many small people money that adds up to millions of dollars of salary. If you go to MTW to pay for your license, the staff starts at anytime after 8 and takes a break at 10.00 am and then lunch at 12.00 although the line going through the door. Not collecting garbage can be tolerated but not burying poor people who have to pay the longer the dead is kept ifs foolishness
The government has a good chance to get out of an embarrassing situation. They should embrace the BLP policy at the last election which they opposed. Privatize all statutory organizations. I suspect that is also IMF policy that they are resisting.