1977 NATIONAL WAGES COUNCIL RECOMMENDATIONS (Clarification)

Mr P. Govindaswamy asked the Minister for Finance if he will (a) give some facts and figures on how he arrived at the quantum of 2% and 6% wage increase for civil servants of different grades in respect of the 1977 National Wages Council's recommendations; and (b) explain why a flat rate of 6% has not been awarded to civil servants who are on fixed salaries or are on the maximum of their salary scales.

The Acting Minister for Finance (Mr Lim Kim San): Mr Speaker, Sir, the National Wages Council after much thought and deliberation recommended a 6% wage increase for 1977 with full offsetting against all forms of increases in remuneration on a group basis. The Government accepted the wage increase recommended by the NWC and the principle of group offsetting for employees in the Civil Service. The percentage wage increase for offsetting purpose for the Civil Service was computed in the manner recommended by the National Wages Council and it worked out to be about 4.05%. This is derived from available figures on substantive salaries of $16.712 million and $17.389 million for the months of December 1976 and June 1977 respectively. A 4% wage increase is therefore used for purpose of group offsetting for the Civil Service. The full offsetting was implemented on a group basis and does not distinguish between civil servants earning increments on a salary scale and others who are on fixed salaries or who are on the maximum of their salary scales.

As for the Superscale Officers, there were different considerations in the determination of their wage increase. The concern here is to retain these senior officers in the service. As in 1976, it has therefore been decided that for 1977 these Superscale Officers be given the full wage increase recommended by the National Wages Council.

Mr P. Govindaswamy (Anson): Mr Speaker, Sir, I am not objecting to the Superscale Officers getting more. If the Minister wants to increase their salary, he can do so. But why the discrimination? Divisions III and IV employees are getting only 2%. Why does he not give 6% to those who are on the maximum of their salary scales? Their salaries are already fixed. Why are they not given 6%? How did the Minister arrive at the quantum of 6% for Superscale Officers? I am putting these supplementary questions to the Minister for National Development and Communications because he knows something about the Ministry of Finance.

Mr Lim Kim San: Sir, as to why we are not giving 6% to all, it is because we are following the NWC recommendations. The 2% is arrived at by offsetting the 6% recommended against the 4% increase in remuneration on a group basis.

Mr P. Govindaswamy: The NWC's recommendation is only a guideline. The Government should take action according to the wishes of the people. This is an elected government, not a colonial government. He must realise that all civil servants are working for the Government, but the lower Divisions of civil servants are getting only 2%. The Minister gets 6% but I, as an MP, get only 2%. Actually this is discriminating the civil servants.

Mr Lim Kim San: Mr Speaker, Sir, this matter has been thoroughly studied by the National Wages Council. I have already given the explanation. The hon. Member for Anson will find all the explanation in my answer.

Mr P. Govindaswamy: Sir, I want the Hon. Minister to clarify whether he will consider giving 6% for those civil servants who got 2%?

Mr Lim Kim San: Sir, my colleague, the Minister for Finance, is not here but what I can say is this. This matter has been thoroughly deliberated, and we are following the recommendations of the people who have sat down, thought over and fully considered this question. The implications of all this have been explained in my answer.

Mr P. Govindaswamy: Mr Speaker, Sir, the Hon. Minister was not involved in the deliberations. The civil servants have made the recommendation. For their own benefit, they have made the recommendation according to the NWC guidelines. The Hon. Minister will have to look into the matter. There must be a justification. All the civil servants must benefit.