For eight years the country has been gripped in an economic recession – negligible growth notwithstanding in a quarter here and there – although it feels like a lifetime, an unaccustomed position for thousands of Barbadian if we count from the last major economic crisis of the early 90s. Clearly Barbadians- judging by how we have responded (not responded) to the economic challenge- must legitimately question our leadership and management abilities as a nation. We have reached the point instead of leading the region, an accustomed position since Independence, we have retreated to comparing our current state with the base of the base in the region. The boast that Barbados is a model Black country boxing above it weight class has become an idle one.
With less than a year to go until the next general election bell is rung AND weeks after the minister of finance Chris Sinckler delivered a ‘budget’ he promised will create a surplus on current account by reducing the deficit by 567 million dollars in the current financial year –the country’s major trade unions have decided that now is the time to pressure the government to modify the rate it has applied with the implementation of the contentious National Social Responsibility Levy (NSRL) from 10% to 5%. BU SUSPECTS the NSRL issue is a ruse by the BWU, NUPW, BSTU and BUT to give impetus to a bigger objective, that is, to force a change in government. Such naked affiliation by the major trade unions to the Barbados Labour Party (BLP) Opposition does a disservice to the movement. This will be a blog for another day.
If a student does not study well in the school year, cramming one week before promotionals will not make a difference. Using the same analogy -how will it be possible to reduce the deficit by 567 million dollars in less than a year before the next general elections IF the government has been unable to implement policies to achieve same in the last eight years? What is magical about this year?
To the apolitical Barbadian it is evident the economic model that has served Barbados for the last 40 years has run its course. The tourism goose is laying eggs, however, not in the same quantity or quality. An ageing population, unsustainable cost of social services, a burgeoning middlecalss manufactured on rising household debt, means that it is all beginning to collapse because we have not been able to match production with spend. As important is that as a people we have to adopt the right behaviours to collectively guide the country in the direction that will reasonably sustain ALL. What should these behaviours be?
It is laughable that trade unions are calling for a wage hike for employees in the public service and the wage bill by the same sector by any measure has been identified as the reason for the worrying state of government finances and has resulted in the printing of money. The end result is that domestic debt to GDP is ranked at one of the highest in the world. BU cannot ignore the fact that there continues to be haemorrhaging in government’s finances outlined in every Auditor General’s report since 2007 to the present. BU’s comment should not be taken as an attack on public sector workers. If we are honest we should be able to agree that the public service has become a place that the political class has padded to satisfy narrow interest.
What is playing out in Barbados gives currency to the Orwellian view that all the tenets we should adopt to protect our fragile democracy we seem happy to jettison in favour of alternative facts, incompetence and corruption from the entrenched political class and the partisan political minions. The foregoing made all the more ironic if we continue to boast of being a highly educated nation. The national budget allocation to education supports it.
The trade unions will again impose a go slow on a nation and what will be achieved? There will be enough workers who feel intimidated to ensure the public service remains somewhat productive and the country will limp along. This is where we are a country limping along.
245 responses to “A Country In Limp Mode”
Vincent u need to shutuh mouth the IMF is not the small island nations piggy bank and the price of going to the IMF is a cost which mostly the poor and vulnerable would pay for. Again take a look at Jamaica what social benefits has Jamaica acquried after many years in an IMF program.
@ Hal Austin
isn’t that evidence how bad things are? Instead of credible I should have said feasible.
Barbadians are not following “mo money” Moore nor “fire de workers” Herbert. Tings more than brown when Sinckler is the only adult in de place.
Sorry folks, Sinckler and company is the only game in town. Wheel and come again.
Operatives
Chuckle….continue to enjoy cloud cuckoo land for now……knowing full well that if this govt is returned they are heading to the IMF in a hurry with the same proposal that OSA offered although amended to deal with the months of destruction post budget….hahaha…..wunnah tink Bimmers dotish……
Vincent,
With an election due in nine months, Stuart will not call in the IMF only to see any benefits to the next government.
I am having mixed signals from the two learnt economists. Firstly, Dr Marshall is of the opinion that the four unions are focusing on the wrong cause, stating that the unions should have dialogue with the Government pertaining to wage increases instead of a reduction in the NSRL. How can you have a dialogue when you are not being entertained.
Will you Dr. Marshall lead the fore to reject this harsh measure knowing that it is going to hurt the populace? The Unions are looking at the big picture in fighting for everyone. The business sector are hurting but none of them have the guts to carry the fight to the Government. You have to remember that dialogue is missing. In the 70″s the BWU challenged Government and took Barbadians on the road to fight the 8% cuts. The Private sector walk, economists walk, the church walk, blacks walk, white walk for a cause. No one spoke of being “OUT OF PLACE”. These taxes are going to hurt the poor, the middle class and the same businessmen who will find the going tough and eventually close shop. I am sick with people stating the Union leaders being inexperience. Ms. Moore just returned to Barbados after being recognised by International Trade Unionist. If the Union don’t lead, who will lead. These four Unions cannot wait on the old unionist like Jones, Best, Morris, Husbands who are singing in the main choir.
Hal
Quite correct…..politics is being played out now to the detriment of the future of the country…….its known as politics over country.
TMW. Exactly.
For eight years the DLP gov’t has been warned about their methods and ineffectiveness. They have ignored genuine, helpful, management, financial and governance advice from black, white, brown, grey, rich, poor, business people, clergy, old DLP stalwarts, and everyone else who was energised by their 2008 election win and the promise of change to the ‘old boy’ system. They did not ignore the bribe-payers.
There was never any dialogue and there has never been any management; only politicking and teefin. They had no idea what the job of governance entailed and the failed to ‘learn on the job’.
Now we are here and they still don’t have a clue. When they are all gone they will be forgotten by history.
So all forces need to be brought to bear to remove them quickly and try again to work with the next lot. Change brings enthusiasm, just like it did in 2008. That enthusiasm was squandered by fools then, only idiots would let it happen again.
Mr Charles Herbert stated that it is incorrect to say that they were not supportive of all of the unions actions…..Brasstacks on VOB this morning in response to David Ellis.
Business folk make views clear
NO, NO AND NO!The Barbados Private Sector Association (BPSA) supports neither the recent budgetary proposals nor the trade union-led industrial action taking place.And…
nationnews.com
http://www.nationnews.com/nationnews/news/98857/business-folk-views
VH, more confused messages.
If the private sector was supportive of the unions we’d be striking with them.
A union victory is a pay increase to ease their pain while leaving the rest of us hanging and Barbados in further decline.
The only thing we have in common is disappointment in poor governance. The solution should be obvious to all.
We are too distracted by the symptoms to deal with the disease.
FB
I am going to be a bit optimistic on this issue by reading the tea leaves as follows.
…..Charles Herbert clarifies their position vis a vis the stance of the unions by declaring qualified support for their actions on VOB Brasstacks today.
…..Members of the private sector and the Unions met today.
…..NUPW called all the shop stewards for a 5.30 pm meeting today.
Hopefully what you were suggesting has happened and we await the next move to see if I read the tea leaves correctly.
It appears Herbert and the BPSA has run out of patience with this unpopular government.
David
Oh yes….but only the Unions have the power to force the game…….what will be their quid pro quo??
https://www.facebook.com/BarbadosToday/videos/10155002699448191/
I hope so VH but the unions could also be over-reaching.
The already useless transport board and port authority were very quick to jump on the opportunity to work even less than they already do when asked to do so. They are both part of the problem, not part of the solution and both prime candidates for privatisation.
On the other hand, the already over-worked and under-paid doctors and nurses who have been struggling with poor facilities and resources for decades did not respond at all to a call to ‘go slow’ today. Their jobs are safe and they stand to benefit from any increased resources a properly managed Barbados might be able to allocate.
The union might get better support for some kind of no confidence statement and supporting action than they are getting for an increase in pay. Bajans are not stupid, they know full well who will have to do the paying. They are walking a tightrope between the desires of their membership who they are paid to represent and the public good. They can ill-afford to lose public support.
FB
Sorry that the Barbados Today video is off…..but it was a clip of Ms Moore and Mr Herbert calling for a march on the 24th July with businesses asked to close…..they have upped de ting and the Private sector is involved
Unions and the private sector team up for joint march next Monday | Barbados Today
Unions and the private sector team up for joint march next Monday
The Barbados Workers Union and the Barbados Private Sector Association today called on all Barbadians to participate in a march next Monday, July 24, as they…
http://www.barbadostoday.bb
https://www.barbadostoday.bb/2017/07/21/unions-and-the-private-sector-team-up-for-joint-march-next-monday/
VH, very good news that we are doing something.
BUT WHAT ARE WE BEING ASKED TO MARCH FOR?
Has anyone said ‘this gov’t has brought us to the brink of destruction and needs to be changed now! Show your support for immediate elections on July 24th!’?
That has been my point all along. Everyone knows what the problem is but we are arguing over symptoms. The symptoms are what divide us.
FB
One step at a time…..we now have the unions and the Private sector on the same page….I agree that they should be marching for elections…..hopefully Primus will continue to be intransigent and not meet or meet and do foolishness….which will force them to march again for an election date this time.
Marching to amend this budget is nonsense….an election date or nothing.
If the private sector and the trade unions are collaborating on taking strike action against government policy, what about the church?
” Stop it now!
Private sector urges unions to end industrial action ”
https://www.barbadostoday.bb/2017/07/20/stop-it-now/
Unions and the private sector team up for joint march.
What a puckin discombobulated mess Barbados is in.
Next will be flight of capital!
@ David,
I hope the government does NOT call an election until next year because the “New parties” need more time to establish themselves.
At the moment the ONLY alternative is the BLP.
David,
Capital flight started years ago, that is why the collapse of the top end housing market and the construction sector.
Any one eyed man is king in a blind man land…..
David
We will have capital flight if no elections are called.
@Hants
I disagree entirely…the best any 3rd party will do is split the vote. The B’s are offering little at this point…the choice….what you have now or an unknown…..don’t assume it will be a walk over, a LOT of people owe their living to the GoB. It is one ting not to get a raise, it something else not to have a job?
Both parties are agreed on the way forward the only thing is the elections…..this govt wants another term…..hence country has to suffer.
@David or Frustrated Businessman
All this could have been avoided. Being stubborn don’t help the situation. To me, this NSRL was never thought out, just a figure was selected and thrown into a budget speech, no one seems to know which should be first, applying the 10% NSRL and then VAT. Should the NSRL value be subject to VAT or the total NSRL amounts. ($100.00×10%=$110.00) PLUS ($110.00×17.5%=$129.25) OR you vat the value of $100.00 which is $10.00×17.5%=$11.75 making it $111.75 paid by the consumer.
Just a simple dialogue would get the ball rolling. We know S. Lashley isn’t happy, we know the Don is concern with it, we know that Essie isn’t happy either. Would these choir boys have the balls to protect constituents. I doubt.
Northern,
I agree with you. The BLP thinks it is smart not to give the people an alternative on the basis that nothing can be worse than the DLP. They may get a nasty surprise. Look at Theresa May and Jeremy Corbyn.
The BLP gave the people the privatization alternative last time around and the DLP won by flipping the message. Politics and messaging!
@TMW
the ex GofCB threw a wrench into the wheels, when he did an about face. They were forced to get rid of him, but the cat was out of the bag. Much of what had been “rubbished” was now supported by a team member.
This march focus is BS. So give back half, drop it to 5%, then wha? Tell the unions and PS to go and suck salt for a while? Bim is so deep in debt a few %NSRL points do not make any difference, and then in a few months we’ll be told we failed to meet budget expectations….because of the cut in NSRL. Beauty….they have avoided wage increase talk, and the PSA is no closer to discussing the deficit.
Investment capital is long gone, I’ve been typing that for years. All that is left is private cash sitting in banks which won’t take risks in this market; it might as well be on the moon.
The only hope for new investment is a change of gov’t that chased it away years ago.
As I said, confidence/enthusiasm will only return with new leadership. 25% of risk-takers are ‘early-jumpers’, 75% are ‘wait and see’. That 25% would make a big difference to our economy right now.
Th unions avoided talking about wage increases because they were told by Sinckler that there would be none forth coming.
The unions understand that the country is in ducks’ guts and as I understand it, they were feeling that if hey could at least get the levy reduced, the hardship being imposed on its members would be a little less.
The Minister was unconscionable to take what was supposed to be a temporary tax from 2% to 10% without any consideration for people who have not have a pay increase for years.
But in the meanwhile they had fooled the electorate……..and we know that the dems are masters at tricks on the electorate………….they appeared to have been making a sacrifice by taking 10% cut but the hypocrites took it back……………..their supporters flooded Brasstacks with calls that the economy was growing and that the MP’s were entitled to get their money back.
But did they just get their money back?? The bastards took back the 10% and retroactively……….
And dlp sympathisers from over in away are being critical of the unions?
Give me a damn break.
@NorthernObserver
It is simple. You cannot taxed a country out of recession. The more taxes you introduce will stagnate the economy – less cash flow means less taxes in the coffers. Although we are having serious cash flows we still building monuments waiting for ministerial plaques that our future generations will have to repay. Do we have to accommodate Carifesta in these hard times. Spending 7 million and making 2 million still leave a 5 million deficit.
Now I remember how incesened at that Esther Byer……what a drain on taxpayers she is.
She said that she deserves her money back as that was not what she signed up for…………she signed up for one salary and it was cut…………moron!
Could someone explain to Ms Byer that the NIS money is not government money……..it is the s money of taxpayers who pay into the scheme which should be there for them and not to be spent willy nilly.
I heard her ranting in the Senate this week that people who get laid off dont want jobs before the 6 months is up and that they are taking the government money instead of taking a job.
What a moron!
TMY
Shortman must have played “powful” foolish and announced out of turn…. “oh yes Barbados can host it”……. when no other country would. Sensible people.
I spoke to a former senior officer who was in the department that had responsibility when Barbados previously hosted Carifesta. She said that anyone who went through that experience would know that Barbados should never host that festival of horrors again. The host nation is always left holding a big bag of debt.
…and to think that this government would even think about spending this sort of money after the fiasco of the millions spent on Independence and to what end?
Has anyone namely Maxine McClean ever told the long suffering people of this country if this country ever realised the millions she said was going to come in as a spin off from the 50th Independence celebrations?
FB
Looks like some of the members are backing down,necessitating Charles Herbert to come back on VOB at 4.30 news to state that some may not participate but the proof of its effect will be the numbers on Monday,he stressed a low turnout will mean that govt can do what it wants……we shall see on D date.
BTW. I realised that Burger King had an immediate injunction to stop work at a new branch near Royal Bank. Poor Bizzy seems to be guinea pig. What about de harder rock ignoring and went ahead and build a massive structure. Two whites, two businessmen and only one being penalised. Who is friend and who is foe.
I don’t have a problem with the BHTA not participating since the Tourism sector is firing on all cylinders. This is a hypocritical statement by the Chamber of Commerce who speaks in two tongues. Members will see a deterioration in business with this NSRL since shoppers will reduce spending. Monday will see who’s who got the guts to be counted.
A friend of mine was in New York recently.
He told me that he attended a lime where there were members of the dlp diaspora. My friend told me that these people believe all the drivel that the PM and DLP MP’s spout out when they are up there.
One of them told my friend……….”Freundel will not call the election until he has to. He is going down to the wire”.
If true, we have to brace ourselves for the rough long haul. In the meanwhile, I will do my part by joining the march on Monday.
The private sector now hijack , dilute and waterdown unions protest ;merchants step in to control the workers. They say don’t touch the ports, who is the massa now?
Chaucer
Good point….now the merchants are out….shut the ports.
Ambassador Morris. Where is the fishing Agreement that you are being paid to solve, or you prefer to label the same union that you were involved in the 70’s when you and your colleagues march up and down to deal with the 8% cut. I am asking you…Was the Bees controlling the Union then? These are the problems we as a people have to deal with having political choir boys lecturing to party faithfuls. These lectures are equivalent to having politicians going by Tom or Barrow grave and talk, talk, talk hoping to get a response. What about having a press conference or town hall meeting where citizens can asked questions and probably get answers.
Bobby Morris is first and foremost a dem. The DLP comes first, principle after if at all.
I saw him tonight venting ……….CBC called him General Secretary, CBC is pathetic.
Listen to the dems who call Brasstacks and then listen to him and you will see a clear sign of fear and panic. The gravy train is about to dry up.
The Private Sector has me confused………one minute the head called into Brasstacks to say that they are not for the strike……now today they are all in??
@ Prodigal Son July 21, 2017 at 8:55 PM
The Private Sector cowards are only using the unions to do their dirty work of getting rid of the current destructive lying party from high office.
Why can’t the likes of Frustrated Businessman bring this foolishness to a halt by withholding all payments of taxes pending the announcement of elections to let the people decide who should look after the economic recovery of the country? Now that would clearly identify who are the parasites and who is the host.
The current MoF has failed miserably since 2013 in trying to around the economic ship of state.
Firing the chief mate in the form of the Guv Deliar is sufficient evidence that Barbados is about to flounder on the reefs of economic disaster if the present administration continues in office for another 9 months without going to the IMF for an SOS bailout when the public sector (mainly statutory bodies) will have to be cut by about 5,000 superfluous politically created jobs as should have been done in phases since 2013.
It’s better to go now to the IMF for balance of payments support than having to witness the entire economy implode in the coming months when the forex reserves tank runs dry with the loss of thousands of more jobs as is taking place in Venezuela.
millertheanunnaki July 21, 2017 at 10:38 PM
“The current MoF has failed miserably since 2013 in trying to [turn] around the economic ship of state.”
Miller you BLP boot licker the constitution is clear at 5 year intervals the country votes for the party it wants to govern. The next elections in 2018 is when citizens transparent and orderly decide at the polls who goes who stays. We missed your coronation as czar of the island with powers to order the electorate to rid themselves of constitutionally elected members. You think short me crutch Payne family like what marble mouth Hinckson said about him? Do they have the right to chase Hinckson vertically challenged arse out of Parliament because he rubbish Payne? Your recipe like you is pure sh*^e a roadmap to socio-political chaos.
Herbert at a meeting say the private sector against strikes they will damage the economy. Less than 48 hours later he and ramfull up face Bizzy ,neither elected nor will ever be elected , announce the private sector marching with the unions. Who is lying and why? More than half the country support the Dems. Should they counter march? For every action there is a reaction even unintended consequences. Cooler heads are in short supply in the unions.
Where is your Fair and Balanced my friend. What you just wrote more like FEAR and UNBALANCED. First of all you are speaking a roll of nonsense. A government has 5 years max to be in office. However, successful past Prime Ministers called elections before the 5-year period unless a vote of non confidence shorten the life span.
Secondly, you seems uneasy and you prefer to vent attacks on people like Payne and Bizzy who have nothing to do with the March. You are spineless and your language insulting Hinkson shows that “YOU” will also do the same to the Leader of the Senate. Your behaviour is a show of desperation and you will attack anyone. BTW. Do you have the guts to attack one of our successful business with operations in the Caribbean who will be closing business for the entire day and still paying staff . Unbalanced with nuff Fear, it would be better to keep quiet .
Let’s be realistic. Since goods coming into Barbados is subjected to the 2% and 10% NSRL, will Hard Rock which is manufactured over in away will be subject to these taxes or will a waiver be in place. Also, we can see that the BCCI who imports over 90% of goods prefer to to hide behind their curtains and under their bedsheets hoping that the Unions and the rest of the BPSA will do the dirty work for them. How SAD and SELFISH.
The right questions aren’t being asked about this new alliance between the unions and the Barbados Private Sector Association.
Who has been promised what and why now?
Who or what is the real engineer behind this plan?
Who has the most to gain by destabilising Barbados?
Who has the most resources to cushion their group from the economic impact?
Who are being used as puppets?
Let me help you. There are some who recognise that there can’t be a shift in power without the mindless masses so where you have not so bright, weak union leaders if you appeal to their greed , lust for power and need to be in the limelight you have the masses you can’t otherwise control.
In the social circles where things are decided, it is a given that Barbados will have to go to the IMF regardless of who wins the elections. This March is not about the good of the economy or workers rights or political parties. It is about putting those wild boys who think they are in charge back in their place by those who really run things.
Put on your thinking caps and see who can come to the front of the class.