MAY 07th, 2005

MAY 07

Workers say 'no' to 5% tax
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"No 5% for them, we money too small for that".

This was the chant by members of the Grenada Manual Maritime and Intellectual Workers Union (GMMIWU) as they marched to Victoria Park in Grenville last Sunday as part of Labour Day celebrations on the island.

Hundreds of workers took to the streets of St. Andrew's to mark Labour Day organised by the Grenada Trades Union Council (TUC) under the theme "Fifty Years of Championing Workers Rights and Continuing". The Keith Mitchell-led New National Party (NNP) government has outlined a proposal in the 2005 budget to impose a 5% tax on salaries of workers as a contribution to the newly formed Grenada Reconstruction and Development Fund (GRDF) to assist the country get back on its feet following the ravages of Hurricane Ivan last September.

The march of workers was dominated by a number of anti-government placards very critical of the new tax measure. "Keith Mitchell will need more than one briefcase to put the 5%", read a placard carried by a worker.

Another placard carried by a member of the Commercial and Industrial Workers Union (CIWU) said, "A tax by any name is still a tax". In addressing workers, President of the TUC, Derek Allard queried the real reason for the introduction of the new tax by government.

Allard questioned whether the Mitchell government was planning to use the money raised from the new tax to pay those million dollar lawsuits lost by the State.

These include the over 16 million E.C dollar high court award against government and an American company in the Mt. Hartman/Hog Island issue, and over $EC20 million in the Dipcon construction judgment.

Allard was critical of the manner in which government was handling the reconstruction efforts following the passage of Ivan. He pointed out that the country had a major Hurricane in September last year resulting in many workers still without roofs while the homes of others are still in a state of disrepair.

"But in true NNP style, they have influenced the distribution of relief in a most politically bias and vindictive way. And on top of that, they decided to add to our burdens by a thoughtless 5% contribution to a reconstruction fund", Allard said.

The TUC boss who is the President of the Bank and General Workers Union (BGWU) indicated that the umbrella trade union movement is not opposed to contributing to the reconstruction efforts but that whatever is done must not result in the poor, dispossessed and hard working people of the country falling further into economic despair.

"In this context we call on the government to meet as a matter of priority with the Trade Union movement to have serious dialogue on a potential contribution from the working classes towards the rebuilding of Grenada", he said. Allard called for the contributions made by workers to the fund to be determined and identified by stakeholders such as TUC, Employers, Churches and Non-Governmental Organisations (NGO's).

He said the trade union movement wants any monies earmarked for the reconstruction fund to be deposited in a special account where shareholders can have an oversight on the disbursement of the funds. "...We must decide very carefully, before one dollar is taken from our salaries, what mechanisms we will use to collect from the different sectors and range of occupational categories where individuals are able to pay so that the burden of this tax don't fall on the backs of workers where an easy salary deduction can be made", he added.

Allard suggested that some consideration be given by government to persons in the lower income bracket before any final decision is made on the new tax.
He warned that despite the "responsible position" taken up to now by the TUC on the issue, it is putting government on notice that the movement will not stand idly by and watch the scarce resources of the country being squandered in this post-Ivan era.

The TUC President made mention of the $150,000.00 payment that government had to make to former Attorney-General Raymond Anthony to bring an early end to his contract in an effort to try and replace him with controversial Jamaican Attorney at-Law, Hugh Wildman.

Allard also called on the Mitchell government stop wasteing the resources of the State by giving away massive concessions to "fly-by-night" investors, and to immediately halt the sale of prime lands around the country

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