Public officers preparing for the new school year are facing disrupted access to credit after the government temporarily halted salary deduction authorisations, prompting concern over how families will meet back-to-school and other essential expenses, the Democratic Labour Party has said.
The criticism follows last week’s directive from Accountant General Ingrid Blunt instructing permanent secretaries and heads of departments to temporarily suspend the signing of salary deduction authorisation forms while legal advice is sought on the use of the documents. The directive affects repayments to nine third-party lending companies.
The National Union of Public Workers has since said it is investigating the suspension before advising its members on the implications of the decision.
In a statement on Tuesday, DLP finance spokesman Senator Ryan Walters said the party had been contacted by public officers from several government departments who were concerned that the temporary measure had disrupted access to loans and lines of credit they depend on to manage household expenses:
“The recent decision by the Accountant General to temporarily suspend the signing of salary deduction authorisations for public officers is creating anxiety among hundreds of workers who depend on loans, lines of credit and other financial arrangements to make ends meet.”
According to him, many of the workers who contacted the party asked not to be identified because they feared victimisation, noting: “They are ordinary workers who rely on these facilities to meet essential family needs, particularly during the back-to-school period.”
He said the suspension had left many public officers in limbo and that salary deductions had long given lower- and middle-income workers access to financing they often could not obtain through traditional lending institutions.
The opposition spokesman said those facilities had helped public officers purchase school supplies, cover medical expenses, respond to emergencies and cope with the rising cost of living.
“The timing of this suspension has only heightened the distress. Parents who had planned to secure financing for uniforms, books, transportation and other educational expenses now find themselves with limited options.”
He said the government was entitled to seek legal advice if questions had arisen over the use of the salary deduction forms, but public servants should not be left bearing the consequences while the matter was being resolved.
Senator Walters also questioned whether the National Union of Public Workers, the Unity Trade Union, affected financial institutions and representatives of public officers were consulted before the decision was implemented.
Calling for an urgent resolution, he said: “The government should move with urgency to obtain the necessary legal opinion and communicate a clear timeline for resolving the matter.”
He added that if changes to the existing system are required, then transitional arrangements must be put in place to protect affected workers.
Senator Walters further said that the volume of complaints being received suggested the issue extended beyond a handful of workers.
“It is a growing concern with the potential to impact many families across Barbados at a time when household budgets are already under considerable pressure.
“The Democratic Labour Party therefore calls for a prompt and compassionate response. These workers deserve nothing less.”
(SM)
