In a move that is more insulting than insulting, the Government of Saint Lucia has finally announced the payment of salary increases to public service workers, negotiated by the previous UWP administration in 2021. This long-overdue gesture is a hollow victory, marred by the government’s lack of consideration and fairness.
It is nothing short of astonishing that the Prime Minister feels proud to boast about this development, rather than being ashamed of the government’s failure to prioritize its employees’ well-being. The payment of back pay due since April 2022 in February 2025, one month before the three-year pay period comes to an end, is not a favour, but rather a long-overdue settlement of accounts. The government’s inability to manage its finances and prioritize its employees, as it promised it would have, has led to a situation where public service workers are, in effect, receiving a pay cut in real terms.
The delay in implementing the salary increases has resulted in a mockery of the original agreement, leaving workers to bear the brunt of the government’s inefficiency and insensitivity. The government had sufficient time to make the necessary arrangements to make good on the salary increase, but it did not. Instead, it has allowed its employees to suffer the consequences of its inaction.
One of the most significant consequences of this delay is the erosion of the real value of the dollar. Over the past three years, the average rate of inflation in St. Lucia has hovered at approximately 4.5%. This means that the purchasing power of the dollar has decreased significantly, making the negotiated salary increases almost meaningless. To make matters worse, the government imposed a 2.5% Health and Security Levy in October 2023, which has further reduced the real value of the take-home pay of public service workers.
When you combine the effects of inflation and the Health and Security Levy, the real value of the dollar has been severely diminished. For example, if a worker was supposed to receive a 2% salary increase, the actual value of that increase would be approximately half of one percent after accounting for inflation and the levy. This means that the purchasing power of the worker’s salary has actually decreased, leaving them with reduced financial capacity.
But that’s not all. The government’s failure to adhere to the pass-through pricing mechanism for fuel and other petroleum products has artificially inflated the price of energy, electricity, manufacturing, and other essential goods and services. This has contributed significantly to the high cost of living in St. Lucia, further eroding the real value of the late payment. The government’s failure to pass on price savings derived from the international market to consumers has resulted in an artificial price ceiling, which has exacerbated the already high cost of living.
As the renowned American author Maya Angelou once said, “When people show you who they are, believe them the first time.” It seems that the Government of Saint Lucia is trying to deceive its people by offering them a six when the people asked for a nine. By announcing a long-overdue payment of salary increases, the government is trying to present itself as a benevolent leader, while the reality is quite the opposite – it has failed to prioritize the well-being of its employees.
Receiving salary increases late has several disadvantages for workers. Firstly, it leads to financial stress and uncertainty, as workers struggle to make ends meet with reduced purchasing power. Secondly, it affects their morale and motivation, as they feel undervalued and unappreciated by their employer. Thirdly, it impacts their ability to budget and plan for the future, as they are forced to adjust to a reduced standard of living.
Furthermore, delayed salary increases can also lead to opportunity costs, as workers miss out on opportunities to invest their increased income, pay off debts, or save for retirement. It also affects their ability to keep up with the rising cost of living, including the artificially high price of fuel and energy.
In conclusion, the relief and joy that public service workers may feel upon receiving their long overdue salary increases will be short-lived. The payment will likely be quickly absorbed by the delayed commitments and expenses that have piled up over time, leaving workers still struggling to make ends meet.
The plight of public service workers is just one aspect of a larger problem. The entire population of St. Lucia is reeling from the impact of an unprecedented high cost of living. The government’s gesture towards public service workers is a small step, but it does little to address the widespread suffering of the entire population. It is time for the government to take concrete action to reduce the basic cost of living to provide relief to all its citizens, not just a select few. The people of St. Lucia must demand better, and it is the government’s responsibility to ensure that they receive it.