Identifier
Created
Classification
Origin
06BRIDGETOWN2203
2006-12-18 12:12:00
CONFIDENTIAL
Embassy Bridgetown
Cable title:
BARBADOS LABOR: A DEAL, A RIFT, AND A SURPRISE
how-toVZCZCXYZ0000 PP RUEHWEB DE RUEHWN #2203/01 3521212 ZNY CCCCC ZZH P 181212Z DEC 06 FM AMEMBASSY BRIDGETOWN TO RUEHC/SECSTATE WASHDC PRIORITY 3914 RUEHC/DEPT OF LABOR WASHDC PRIORITY INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY RUEHCV/AMEMBASSY CARACAS PRIORITY 1580 RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITY RUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITY RUEHCV/USDAO CARACAS VE PRIORITY
C O N F I D E N T I A L BRIDGETOWN 002203
SIPDIS
SIPDIS
DEPT FOR WHA/CAR AND DRL/IL
USDOL FOR ILAB
SOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/14/2016
TAGS: ELAB ECON PGOV PREL BB XL
SUBJECT: BARBADOS LABOR: A DEAL, A RIFT, AND A SURPRISE
C O N F I D E N T I A L BRIDGETOWN 002203
SIPDIS
SIPDIS
DEPT FOR WHA/CAR AND DRL/IL
USDOL FOR ILAB
SOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/14/2016
TAGS: ELAB ECON PGOV PREL BB XL
SUBJECT: BARBADOS LABOR: A DEAL, A RIFT, AND A SURPRISE
1. (U) Summary: The week of December 10 proved to be an
eventful one for Barbados' labor unions. On Tuesday,
December 12, the National Unon of Public Workers (NUPW)
reached a new two-year wage agreement with the government
that will give public employees a 10 percent salary increase
for the period 2006 to 2008. That same agreement, while
celebrated by workers for the double digit pay hike, was
criticized by some as a pre-election gimmick by the
government anxious to shore up its support with key voter
groups. The agreement also caused a rift within Barbados'
usually united labor movement because the NUPW broke ranks
with the umbrella Congress of Trade Unions and Staff
Associations of Barbados to reach its own deal with the
government. The week closed with the surprise announcement
of the resignation of Joseph Goddard as General Secretary of
the NUPW, a position he has occupied for 20 years. End
Summary.
CHRISTMAS COMES EARLY FOR BARBADIAN WORKERS
--------------
2. (U) With a headline "New Year Bonus!" the press reported
the successful completion on December 12 of the months-long
negotiations between the NUPW and the government. The
agreement will give Barbados' 28,000 plus public servants a
raise of 10 percent over the period of 2006 to 2008. The
double digit pay raise was the highest in two decades and a
surprise to most. The raise is also in addition to a
2-percent cost of living adjustment that public workers will
receive as a result of the previous 2-year wage agreement.
In the negotiations with the government, the NUPW
successfully argued that the raise was more than justified in
light of the country's rising cost of living. Barbados'
inflation has been hovering around 7 percent during much of
2006, up from 6 percent in 2005.
3. (C) The NUPW's position in the negotiations was helped
significantly by the country's current political climate.
The rising public discontent over cost of living issues has
forced Prime Minister Arthur's government on the defensive,
and political calculations probably played a role in the
government's agreement to the higher than expected pay boost.
Although the next general election will likely take place in
the second half of 2007, if not later, Prime Minister Arthur
may have viewed the public sector wage negotiations as a good
opportunity to demonstrate that his government was responsive
to the concerns of the people of Barbados. Certainly that
was the opinion of Orlando "Gabby" Scott, the Senior
Assistant General Secretary of the Barbados Workers Union
(BWU),who described the NUPW deal in a meeting with PolOff
as an early "Christmas present" in Barbados' pre-election
season.
A RIFT IN BARBADOS' LABOR MOVEMENT
--------------
4. (C) While Barbados' public servants were probably pleased
with the NUPW negotiating team, the country's umbrella labor
organization, the Congress of Trade Unions and Staff
Associations (CTUSAB) did not necessarily share the
sentiment. According to Scott, the NUPW strayed from
CTUSAB's negotiating strategy and reached a settlement that
did not correspond to CTUSAB's initial goal of a graduated
pay raise that would have given a higher raise in percentage
terms to lower paid employees. Sir Roy Trotman, the General
Secretary of the BWU and the President of CTUSAB, publicly
SIPDIS
criticized the NUPW deal and maintained that his organization
will continue negotiating for a graduate pay raise despite
the NUPW defection. However, he is facing an uphill battle
because Barbados' public servants wage agreements are
generally used as a guide for private sector wage increases
and because it will be difficult for CTUSAB to argue that a
10-percent wage increase is not a good deal.
5. (C) A more important task on Sir Roy's agenda may be to
patch his organization's differences with NUPW. What Scott
described as "disharmony" is relatively unusual for Barbados
labor.
COMRADE NO MORE
--------------
6. (C)
GILROY
SIPDIS
SIPDIS
DEPT FOR WHA/CAR AND DRL/IL
USDOL FOR ILAB
SOUTHCOM ALSO FOR POLAD
E.O. 12958: DECL: 12/14/2016
TAGS: ELAB ECON PGOV PREL BB XL
SUBJECT: BARBADOS LABOR: A DEAL, A RIFT, AND A SURPRISE
1. (U) Summary: The week of December 10 proved to be an
eventful one for Barbados' labor unions. On Tuesday,
December 12, the National Unon of Public Workers (NUPW)
reached a new two-year wage agreement with the government
that will give public employees a 10 percent salary increase
for the period 2006 to 2008. That same agreement, while
celebrated by workers for the double digit pay hike, was
criticized by some as a pre-election gimmick by the
government anxious to shore up its support with key voter
groups. The agreement also caused a rift within Barbados'
usually united labor movement because the NUPW broke ranks
with the umbrella Congress of Trade Unions and Staff
Associations of Barbados to reach its own deal with the
government. The week closed with the surprise announcement
of the resignation of Joseph Goddard as General Secretary of
the NUPW, a position he has occupied for 20 years. End
Summary.
CHRISTMAS COMES EARLY FOR BARBADIAN WORKERS
--------------
2. (U) With a headline "New Year Bonus!" the press reported
the successful completion on December 12 of the months-long
negotiations between the NUPW and the government. The
agreement will give Barbados' 28,000 plus public servants a
raise of 10 percent over the period of 2006 to 2008. The
double digit pay raise was the highest in two decades and a
surprise to most. The raise is also in addition to a
2-percent cost of living adjustment that public workers will
receive as a result of the previous 2-year wage agreement.
In the negotiations with the government, the NUPW
successfully argued that the raise was more than justified in
light of the country's rising cost of living. Barbados'
inflation has been hovering around 7 percent during much of
2006, up from 6 percent in 2005.
3. (C) The NUPW's position in the negotiations was helped
significantly by the country's current political climate.
The rising public discontent over cost of living issues has
forced Prime Minister Arthur's government on the defensive,
and political calculations probably played a role in the
government's agreement to the higher than expected pay boost.
Although the next general election will likely take place in
the second half of 2007, if not later, Prime Minister Arthur
may have viewed the public sector wage negotiations as a good
opportunity to demonstrate that his government was responsive
to the concerns of the people of Barbados. Certainly that
was the opinion of Orlando "Gabby" Scott, the Senior
Assistant General Secretary of the Barbados Workers Union
(BWU),who described the NUPW deal in a meeting with PolOff
as an early "Christmas present" in Barbados' pre-election
season.
A RIFT IN BARBADOS' LABOR MOVEMENT
--------------
4. (C) While Barbados' public servants were probably pleased
with the NUPW negotiating team, the country's umbrella labor
organization, the Congress of Trade Unions and Staff
Associations (CTUSAB) did not necessarily share the
sentiment. According to Scott, the NUPW strayed from
CTUSAB's negotiating strategy and reached a settlement that
did not correspond to CTUSAB's initial goal of a graduated
pay raise that would have given a higher raise in percentage
terms to lower paid employees. Sir Roy Trotman, the General
Secretary of the BWU and the President of CTUSAB, publicly
SIPDIS
criticized the NUPW deal and maintained that his organization
will continue negotiating for a graduate pay raise despite
the NUPW defection. However, he is facing an uphill battle
because Barbados' public servants wage agreements are
generally used as a guide for private sector wage increases
and because it will be difficult for CTUSAB to argue that a
10-percent wage increase is not a good deal.
5. (C) A more important task on Sir Roy's agenda may be to
patch his organization's differences with NUPW. What Scott
described as "disharmony" is relatively unusual for Barbados
labor.
COMRADE NO MORE
--------------
6. (C)
GILROY