President Ali will not pay public servants 50% increase he said they deserve

As public sector workers navigate nominal pay increases compared to cost of living many question the integrity of politicians and who can be trusted to keep their campaign promises.  In 2024 rising cost of living continues to erode real wages and reduce purchasing power.

In 2018 when public school teachers struck for increase wages, then Opposition Members of Parliament Irfaan Ali and Bharrat Jagdeo, addressing the National Assembly, said public servants deserve at least 50 per cent increase in pay.

The two parliamentarians, who are presently President and Vice President of Guyana, were condemning the A Partnership for National Unity and Alliance for Change (APNU+AFC) government seven per cent pay increase, across the board. The President and Ministers of Government of the APNU+AFC did not pay themselves the increase; a practice discontinued by the Irfaan Ali government.

In 2018 Guyana was not an oil producing economy and its National Budget was pegged at $267.1 Billion. In 2024, Guyana is an oil producing country with a National Budget pegged at $1.146 Trillion. This sum excludes the People’s Progressive Party/Civic (PPP/C) government returning to the National Assembly for two supplemental spendings in August, totalling $44.8 Billion and November, totalling $84.5 Billion.

APNU+AFC Gov’t paid workers more than PPP Govts

The PPP/C government’s boast that for the period 2020-2025 they increased workers’ pay by 45 per cent. For the corresponding period the APNU+AFC government increased workers’ pay by 77 per cent.  In 2025 workers will receive an eight per cent increase, across the board. Cumulatively, the APNU+AFC’s pay out represents an increase of 32 per cent in a smaller, non-oil producing economy.

The PPP’s sum shows, in spite the country’s wealth and ability to pay bigger salary increases, workers received less. Guyana began producing oil in 2019 and is presently ranked the world’s fastest growing economy and richest per capita. 

Further comparison of the APNU+AFC’s pay increase compared to the PPP/C’s previous five year, shows the APNU+AFC paid workers more.

The evidence shows that even when pay increases are totalled over the period of the Ali administration, at no time did workers receive a pay increase of 50 per cent as Ali and Jagdeo said the coalition government should paid. Neither would workers receive 50 per cent total pay increase for the term of the Ali government.

President and ministers receive more pay increase than workers

Over the period of the Ali administration data shows those who benefitted largely from the pay increases are the President and his ministers. The economic disparity was not missed. Individuals and organisations have pointed to this fact.

The Guyana Trades Union Congress (GTUC) called on the president and ministers not to accept the 10 per cent pay increase in 2024 nor the eight per cent in 2025 as part fulfilment of the PPP/C’s campaign promise to cut their salary if they return to government. The country’s largest federated body, blasting the government for reneging on its campaign promise, bemoaned the income gap widening between the haves and have-nots.

APNU+AFC Minister of Finance, Winston Jordan,addressing the matter, noted the administration failed to keep its campaign promise and revert their salary to the pre-August 2015 levels (i.e. prior to the coalition government increase) and that by 2024 increase their salaries by a further 35 per cent. The former minister addressing the inequity in pay increase, stated that “a minimum wage worker will get $8,615 extra a month, while the President’s tax-free salary increases by $290,900.”  Jordan declared that “this widening of the income gap is unacceptable.”

Adam Harris, veteran journalist and columnist in this publication, calling the pay increase  “the great confidence trick” noted that Ministers who receive $1.1 million per month would get $110,000 per month salary increase.  Harris also pointed out that the minister would get a cheque for $13.2 million in retroactive payments at the end of the year, while the public servant would receive $144,000.

And for President Irfaan Ali , with a basic salary of $2.9 million per month, he would receive back pay totalling some $35 million.

The irrefutable evidence confirms widespread skepticism that some politicians cannot be trusted and or do not care for the ordinary folks after being elected to office.