Daily newspaper Finance upset with public sector pay deal

Daily newspaper Finance upset with public sector pay deal

Ljubljana -In the past three years, government negotiations with the public sector dragged into December and although the ministers said there was no money…

… a Christmas miracle happened every time and money magically appeared, the daily Finance comments pay deal between the government and the public sector trade unions.

There is a bitter aftertaste: the government has no problem injecting millions into the public sector, but on the other hand there is no room for bringing VAT to the pre-crisis level and the cabinet claims that there can only be less levies on pay if capital gains tax is raised.

All this is possible because the trade unionists have a mighty weapon – a strike – at their disposal, and the support of some 170,000 public sector employees. Election is near and they are voters, the paper says.

However, the question remains whether this can go on for ever, as somebody will have to pay for the pay raises. The pay itself may not even be the biggest problem, but the size of the public sector could.

But this is another topic that politicians so far have failed to tackle.

“And as long as this continues, we will probably discuss pay raises in the public sector every autumn. And experience Christmas miracles,” the commentator concludes in The Wizards of the Finance Ministry./IBNA

Source: The Slovenia Times