Bermuda civil servants agree to pay cut
Government also expected to take a break from its part of pension contributions.
HAMILTON, Bermuda, Friday February 17, 2012 – White collar workers have agreed to an eight per cent pay cut for civil servants.
This is in response to a request made by Premier and Finance Minister, Paula Cox, who called on civil servants to take the cut for one year. This cut, she said, will be offset by a freeze on employee pension contributions.
In addition, government is also expected to take a break from its part of pension contributions, resulting in a $31 million saving over a 12-month period.
But all this is hinged on whether or not other unions will follow suit and take similar cuts. A Bermuda Public Service Union member said: “The message is we all have to stick together. The meeting agreed to let the union negotiate the eight per cent cut but it must involve all the unions.”
The rationale behind the move is not political but an effort to save jobs.