(CNS): Chris Saunders (BTW), now an independent MP who sits on the opposition benches, managed to steer through his private member’s motion calling for a significant increase in government workers’ wages last week, something he had sought to support in the budget preparations before he lost his job as finance minister. The government agreed to raise public sector pay by another 13% as soon as possible.

As he presented his motion in the early hours of Friday, 28 April, Saunders said he brought the motion largely because of the massive increases in interest rates and the impact that has had on the cost of local mortgages and other loans. He pointed out that inflation here is fuelled from outside the country, so there are limits on the things that any Cayman Islands government can do to manage inflation.

Saunders accurately predicted an additional 0.25% interest rate hike by the US Federal Reserve, which happened less than a week later, and warned that fuel prices were increasing again and inflation was not likely to fall anytime soon. He noted that this pay increase proposal is less than 1.5% of the government’s total budget and said that a case had been made by several MPs during last month’s debate on the government’s Strategic Policy Statement.

Agreeing to consider the proposal, Premier Wayne Panton said he would love to be able to deliver the salary increases over the current budget period, as there was no mention of another cost of living allowance (COLA) in the SPS. However, he said there was work still to be done on the budget.

Panton said that there was no doubt that civil servants worked really hard and deserved another pay increase, as they have challenges just like everybody else in this current inflationary environment.

Deputy Governor Franz Manderson thanked the MPs for recognising the “amazing work” that civil servants do and said that while public sector workers were striking in other countries over pay, civil servants in the Cayman Islands turn up to work every day.

“That is because the government has consistently shown appreciation and shown civil servants we care about them,” Manderson said, as he warned that pay increases needed to be sustainable.

Watch the debate on CIG social media.