FINANCE Minister Charilaos Stavrakis’ letter to senior state officials three days ago, in which he asked them to voluntarily commit to a 10 per cent cut in gross salary for two years, has fallen on deaf ears at four out of the 11 ministries, the Mail confirmed yesterday.
Contrary to press reports suggesting that some permanent secretaries have answered positively to the letter, Interior Ministry Permanent Secretary Lazaros Savvides said that he had not taken up the Finance Minister’s invitation, adding that “the group of Permanent Secretaries have referred the matter to our union PASYDY”.
“As a group, we are civil servants and members of PASYDY, and consider that as such it is not for us to respond individually, but collectively. We are therefore asking our union to undertake any discussions of the issue on our behalf,” he said.
“Of course, state officials who are appointed directly by the President or the Council of Ministers can choose to respond on an individual basis as they see fit.”
Senior sources at two other ministries, including Finance, also confirmed that they were following a collective approach, each referring to a meeting to be held very soon between the permanent secretaries and union General Secretary Glafkos Hadjipetrou. “Once we have spoken with the union, we can decide what to do”, one source said.
Defence Ministry Permanent Secretary Petros Kareklas said: “We are public officials, and we are organised in PASYDY. We pay our subs, and the union represents us.”
“The government has indicated that it wants to have a dialogue with our union, so we will wait to see what the official position is. We will not be adopting a position as a group of Permanent Secretaries, but as PASYDY members. We will follow the policy decided by our union.”
Stavrakis’ letter was sent to dozens of the island’s most senior civil servants, state officials and heads of regulatory bodies, including the Permanent Secretaries at each of 11 ministries, the 13 members of the Supreme Court, the Attorney-general, Auditor-general and Accountant-general, the Chief of Police and the Ombudswoman.
It asked them to follow the example of President Demetris Christofias, all 12 members of the Cabinet plus members of parliament, who last month voluntarily agreed to the same gross salary reduction, which will be implemented for the first time at the end of this month.
The Finance Ministry has acknowledged that according to its own estimate, the annual savings if all addressees comply would amount to a few hundred thousand euros, giving an overall total of a modest €1 million for this particular measure. However, Stavrakis wrote, “more importantly, it will send a strong message to all organised groups and social partners to exercise restraint in their economic demands.”
Speaking to state broadcaster CyBC yesterday, Stavrakis emphasised again that compliance with his request would be a “symbolic gesture”, but would send a clear message that everyone should be prepared to make “inevitable sacrifices” for the good of the economy. He added that there was no element of compulsion.
On Wednesday, the union sent its own letter to the Finance Minister – signed by Hadjipetrou – in which it described Stavrakis’ letter as “totally unacceptable” and a “hostile” move against it, and ended by threatening to refuse to discuss the government’s proposed cuts in the public sector payroll unless the letter is withdrawn.
Yesterday, Hadjipetrou referred to “blackmail”, saying it was wrong for Stavrakis’ letter to “target and expose thirty employees”, who may be pilloried for not caring about the national interest if they refuse. Rather, he said, the well-off should be asked to pay.
“There are so many other serious measures that could be taken. The state is owed €1 billion, of which 60 per cent is retrievable, according to (Auditor-general) Mrs Yiorkadji. Let the Minister see to retrieving 20 per cent, or €200 million. Instead, we’re talking about which of twenty to thirty officials are going to pay something, or how we’re going to get them to commit to do so?”
Government spokesman Stefanos Stefanou said that in view of the dialogue and discussion which still needs to be held with PASYDY, the other social partners and the parliamentary parties, the government “will maintain a constructive tone”.
