Unite Says Budget Leaves Working People “Worse Off”

Unite has said that, while it welcomes some of the measures announced in the Chief Minister’s 2024 budget speech, it feels that the majority “does not go far enough to help those on minimum wage or those who are most in need in our community.”
A statement continued: “Given the cost of living crisis we were anticipating that the minimum wage would surpass £9 an hour coming closer to £10, particularly if we take into account the significant increases on the minimum wage working people in the UK are enjoying as part of an economic recovery.
“The increases in the old age pension and disability benefit will in part address the inflationary pressures being experienced by the lowest earners in Gibraltar; although the union maintains that the minimum wage remains artificially low.
“In respect to the Public Sector pay increase we welcome the honouring of the two-year pay deal, notwithstanding, our members will inevitably be disappointed that consideration to improve the offer has not been taken onboard.
“The Chief Minister’s budget address to parliament today suggests that Gibraltar is experiencing economic recovery therefore indicating further support can be afforded to working people, something that Unite will continue to pursue.
“The increase in the minimum wage bringing it up to £8.90 per hour falls way short of our expectations and we don’t believe that this increase will help to fight off current inflationary pressures especially for those with the lowest paying jobs in the economy, our target continues to be a minimum wage that surpasses £10 per hour if the minimum wage is to come anywhere near a living wage. The union welcomes the return to 25% of personal taxation although we are critical of the social insurance rise together with electricity and government housing rental which in some cases have been increased above inflation.
“The honouring of the second year of the deal is welcomed specifically on the consolidation of the payments however emphasis needs to be made that we indeed pushed for an improved pay deal to that already agreed for public sector workers. We welcome Government’s commitments regarding the application of the parity principles benefiting those on low pay in the public sector however our understanding is that the entry point should be over £23,000 as per UK counterparts and the increase announced in parliament today fails to meet this and merely applies the already negotiated increase for all of the Public Sector.
“The union, its shop stewards and members will deliberate on the wider budget in the coming days with a focus on the effect that the measures will have on our public and private sector members.”
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