Published On: Tue, Oct 14th, 2014

Redundancy civil servants produces 95.3 million for the government

Curacao Government CenterWILLEMSTAD - The government will produce a saving of 95.3 million guilders due to the redundancy of 418 officers over a period of five years. This is according to a calculation of the Department of Administration, Planning and Services (BPD) in a press release following the signing of the covenant between government unions, on structural reduction of the government personnel.

The six signed covenants, including the elimination of the early retirement arrangement, will save the government 190 million guilders. Accession of civil servants to the basic insurance per November 1, will have no financial implications for the government. Moreover, it is questionable whether the target date of November 1 will be achieved, given the legal process that must be completed.

The freezing of the indexation for 2015 will yield a total of 22.3 million. The adjustment of the wage act, the periodic increases after a function evaluation and the negotiations for a new reward system for civil servants will produce a total of 8.4 million in savings.

Limiting overtime will result in a saving of 6 million guilders. It is agreed though that this amount will be used for attracting additional staff for the Department of Justice. The limitation of the number of bonuses will entail a saving of 11.4 million.

The biggest saving comes from the redundancy of 418 civil servants. The government is thinking to save about 95.3 million guilders. Together, this amounts to a sum of 145 million guilders, but the government assumes that with the elimination of the early retirement arrangement for civil servants, with a transitional arrangement of one year, will result in a total savings of 190 million, as mentioned before.

The government wants to save a total of 230 million guilders. This will be achieved by the adjustment of the early retirement arrangement for civil servants. The government and unions are still in discussion. Another point that the government wants to discuss is the temporary halving of the holiday bonus. The civil service unions have indicated that this point is not negotiable. But the press release of the Ministry indicates this point is still on the table.

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