In response to H.E Governor Todd release on severance pay, The CSA has followed up with a release to RTC News.
The Interim Administration recently released a document outlining a Voluntary Severance Scheme in which they are encouraging civil servants to participate. The TCI CSA was invited by the Interim Administration to make recommendations to contribute to the development of this severance scheme document to ensure that the scheme is in the best interest of all civil servants. However, after reviewing the final version of the Voluntary Severance Scheme being offered to Civil Servants a number of disturbing things jumps off the page. This is particularly disappointing given the fact that the TCI CSA was asked to provide feedback on a number of provisions and we have done so with the full backing of our membership. This release serves to highlight those issues and confirm that the TCI CSA stands squarely on the side of every civil servant in Turks and Caicos Islands.
Firstly, the rhetoric used in the opening body of the Voluntary Severance Scheme document with reference to there being much higher expectations of public servants in the future, jobs being more challenging, and expectation of a higher quality of service, is completely unfounded, off base and downright disrespectful to all current civil servants. This is not the type of language you would expect from the CEO of the Civil Service, let alone sanctioned by the Governor. Civil Servants are hard working, and will continue to be, no matter what is the new incarnation of the Civil Service at the end of the reform exercise.
Secondly, it is very disingenuous for the Interim Administration to pretend that they care about civil servants when they are rolling out this Voluntary Severance Scheme in the midst of a yet to be completed reform exercise. Having not completed the assessments of all of the Ministries and Departments, neither the Interim Administration nor civil servants fully know which areas should have a reduction in staff from those that will benefit from staff increases. The TCI CSA knows for a fact that in the ministries where the assessment is incomplete, there are significant staff shortages, but yet the Interim Administration is asking civil servants to within a few weeks to a month to decide whether to participate in the voluntary scheme when they are not certain of the jobs prospects within their Ministries or others, not to mention the private sector. The CSA can confirm that the first time that the reform team met with the Labour Commissioner was Wednesday 26th October 2011. So how genuine could the Interim Administration really be if such a key person is only brought into the process almost ten months after the reform process has begun and with two months left? And in addition, the Interim Administration has yet to conceptualize and develop a training and private sector employment plan for persons who are to be made redundant voluntarily or mandatorily.
In reviewing the various provisions contained within the Voluntary Severance Scheme document, we must note that the following with condemnation:
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This scheme is being sold as a voluntary scheme, but we must note that if this is truly a voluntary programme, persons that confirm they want the compensation payment should be accommodated. Furthermore civil servants who do not apply for the voluntary severance package but are later made redundant through mandatory means will not receive the full benefits of the severance package being offered to those opting for voluntary redundancy. Persons should be allowed to leave without restrictions or penalties if they so wish and also those being made redundant mandatorily should be paid severance benefits equivalent to those who opt for the voluntary redundancy package. This is especially important and only fair in light of the fact that there is an eight million dollar provision within the budget for meeting the milestones, with a five million dollar retainer of sorts. Financial implications of the scheme should have no bearing on who goes and who stays.
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The severance payment to civil servants is being based on current salaries after the 10% deduction of last year. In fairness all civil servants should be paid based on their salary before the 10% deduction. Given that they would have already made a significant sacrifice to the budget saving efforts by the Interim Administration and should not be short changed anymore.
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Weekly paid wage staff will be compensated one week pay for each year of service. This level of compensation is what is normally paid as outlined for Redundancy in the current General Orders. But the problem with that provision is that those clauses in the General Orders were written in 1998 when cost of living in the TCI was much lower. Thus a minimum of two weeks’ pay for one year service or calculations based on standard ex gratia payment would have been more considerate and palatable. But to hold tight on this provision of one week pay for each year of service further highlights the heartlessness of the Interim Administration which has identified areas such as Office Cleaners, Street Cleaners, Night Watchmen and the like for redundancy when the majority of those positions are weekly. Furthermore most persons in this category would not have the luxury of voluntary redundancy as most of them are being targeted for mandatory termination of service.
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If civil servants apply for the voluntary severance offer and are accepted and made redundant, they will be ineligible for reemployment in the civil service. This provision is outrageous as its intentions could only be to keep qualified Turks and Caicos Islanders out of the civil service. Not only is this unconstitutional, it is unbeneficial to the long term development of the country. Is it to be understood that if a 35 year old person takes the package and over the next nine year receives a PhD in Public Service Management, they will be forever barred from making that contribution? The previous reform exercise in the early 90’s had a wait period of five years before reemployment, but a three year ban is more practical in light of a maximum pay out of two years under the scheme, in addition to three years being the standard contract period. The resulting savings would more than justify a persons’ reentry into the Public Service. Also, should the economy turn around with local government, there will be no opportunity for re-joining the public service as the demand for public services increase.
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In this Voluntary Severance Scheme document (Annex A), the Interim Administration uses 365 days for the calculation of untaken vacation. This calculation method is grossly incorrect. To use 365 days would suggest civil servants are paid for each day of the year when clearly they are paid for five days of each seven day week i.e. 30 days vacation is 6 weeks off work and not one month. The correct number to be used is 260 days.
Finally, it is clear that the Interim Administration is receiving poor advice or at least ignoring good advice once it is given by organizations like the TCI CSA. It is not too late for them to reverse their policy positions in fairness to all civil servants that have admirably served this Country for so many years especially given the significant decision persons have to make.
CSA Management Council
