Hikes took effect before July salary cut
Eight people – a third of the staff
– in the Portfolio of the Civil Service received pay raises between March and
July as the Cayman Islands government struggled with an operating deficit that
was projected near $45 million at the time.
The increases all took effect
between 1 March and 1 July prior to an across-the-board 3.2 per cent salary
reduction instituted by government in attempts to cut costs heading into the
current fiscal year, which began on 1 July.
The eight employees all received
the 3.2 per cent pay reduction, but in some cases their raises more than
doubled the amount of the 3.2 per cent pay cut and resulted in a significant
increase.
Portfolio of the Civil Service
officials, who provided the pay raise information under the Freedom of
Information Law, said the increases were warranted in all cases.
Portfolio Deputy Chief Officer Ian
Fenton said six of the employees who received pay raises had been assigned new
jobs, and six had undertaken additional education to warrant the hikes.
“All of the employees received
increments after either passing exams/gaining new qualifications or after
taking on additional duties,” Mr. Fenton wrote in an email. “This has enabled
the Portfolio to operate with four vacancies unfilled and generate a good
saving for the public.”
The Cayman Islands government has
been operating under a “soft” hiring freeze since late 2008, according to memos
previously circulated by top civil service officials. Those documents stated
that vacant positions are not to be filled unless they are considered critical
to the daily operation of the organisation.
Mr. Fenton also noted that the
additional pay for educational qualifications, such as Certified Public
Accountants designations or master’s degrees, or for taking on additional work,
are not mandatory.
“(It) depends on significance of
the duties and the level of responsibility at which the employee is already
working,” he said.
According to the information
provided under the open records request, four of the eight portfolio employees
who received pay raises between March and July got a 2.5 per cent increase.
This would have been subsumed by the 3.2 per cent across-the-board salary cut
in July, leaving those four employees with a net 0.7 per cent salary decrease.
Three of the eight workers received
a 7.7 per cent pay increase; combined with the salary reduction that would net
a 4.5 per cent pay hike.
One Portfolio of the Civil Service
employee was granted a 10.4 per cent pay raise, giving that person a net 7.2
per cent pay increase once the salary reduction took effect.
None of the eight employees was in
the upper management salary range used by the government. The two highest paid
workers in the portfolio who received raises earned between $60,000 and $70,000
a year. The lowest paid worker earned between $20,000 and $30,000 a year. The
remaining five were paid between $40,000 and $60,000 per year.
The Portfolio of the Civil Service
essentially operates as government’s administrative and human resources
department. It also has spearheaded continuing education and employee training
efforts through the Cayman Islands Civil Service College.
Timing
Civil Service managers were not officially
informed of the 3.2 per cent salary reduction coming on 1 July until 6 May –
when an administrative circular was sent to all chief officers and department
directors informing them of the pay reduction and several other cost-saving
measures being undertaken by government.
However, two months earlier,
Financial Secretary Ken Jefferson issued a memo indicating that civil service
salaries would be cut between 5 per cent and 15 per cent. That memo was sent on
4 March and clearly indicated the government’s view that budget reductions
would be necessary to get through the 2009/10 fiscal year.
The 5 per cent to 15 per cent pay
cut didn’t happen, and eventually the deputy governor’s office announced that
salaries would not be cut for the remainder of the budget year – through 30
June. However, civil service officials indicated in early April that salary reductions
would likely be needed in the upcoming budget year.
A 7 May memo sent from the deputy
governor’s office reaffirmed that stance.
“Further reductions in operating
expenses will be expected over the next three years,” the memo stated. “It
follows that sustainable means of reducing costs must continuously be pursued.”
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