CIVIL servants said yesterday they were willing to pay their share to tackle the crisis through an emergency contribution but demanded that everyone else should also do their bit, suggesting VAT be increased so that “everyone would pay”.
But PASYDY rejected any measures that would affect salaries and pensions in the long-term.
“If our share, always in the form of an emergency contribution, is 10 or 20 per cent, we will pay, provided that everyone else with a similar position as civil servants pays,” said Glafcos Hadjipetrou, the chief of government workers umbrella union PASYDY.
Speaking after his union’s conference, which convened to discuss measures proposed by the government and parties in a bid to shore up the economy, Hadjipetrou said they agreed to cuts and savings wherever possible.
But he warned that with a situation involving “one person hired for every four who retire”, the price would ultimately be paid by the public because government departments would not be able to operate efficiently enough to serve.
The ‘one for every four’ measure had been proposed as a way of cutting the size of the broader public sector by 5,000 in the next five years.
Hadjipetrou made it clear that civil servants would not accept anything that affects their salaries and pensions.
In his speech he said the problem was not the state payroll, or the pensions and suggested that with the same financial facts, Cyprus joined the eurozone in 2008.
“The Cypriot economy’s problem is elsewhere and should be sought elsewhere,” he said.
“As regards the unacceptable demands for cuts to income and pensions benefits, I declared in the previous conference that we will not accept any restrictions to our rights,” Hadjipetrou said during his speech. “Our position has not changed in the slightest.”
Hadjipetrou said salaries and pensions of current civil servants are protected by law and “to us they are rights, which are inalienable and non-negotiable.”
He added that the union also rejected measures affecting the rights of newcomers in the civil service.
“We would neither accept the new generation of civil servants to serve for the next 30 to 40 years under conditions of 20 years ago because there is a crisis today, or the next two years,” Hadjipetrou said.
The package of measures on the table includes provisions that affect newcomers and pensions.
Speaking to reporters after the conference, Hadjipetrou said “there are simple solutions” the government could put in place “to end the worry of entering the support mechanism.”
Prompted by reporters to elaborate, Hadjipetrou said raising the VAT is a general measure, which everyone would pay.
PASYDY’s comments came in the wake of warning that Cyprus may need to enter the EU’s support mechanism if measures are not taken immediately to shore up the economy.
Data published on Monday showed the central government budget deficit widened sharply in the first half of this year to 3.47 per cent of gross domestic product on a cash basis, from 1.87 per cent a year ago. Revenue fell 1.42 per cent while expenditure was 9.15 per cent higher.
Authorities have said they are aiming for a general government budget deficit, which also includes accounts for local governments and some semi-governmental corporations, of 4.0 per cent of GDP or less for 2011, after a 2010 shortfall of 5.3 per cent.
But that forecast was made before the blast slapped the state with a bill, which could reach €3 billion. Preliminary finance ministry assessments have slashed the island's growth outlook this year to zero from expansion of 1.5 per cent.
Unions are due to meet the president tomorrow.
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