PHILIPSBURG--Prime Minister Silveria Jacobs has responded to representatives of Windward Islands Civil Servants Union/Private Sector Union (WICSU/PSU) and Windward Islands Teachers Union (WITU) regarding the payment of deferred vacation allowance as part of cost-cutting measures for civil servants.

With reference to your proposal as indicated in the letter dated June 1, 2020, I hereby inform you that the conditions as imposed on us by the Netherlands include a reduction of 12.5 per cent on the total package of employment benefits (remuneration and emoluments) and is applicable as of July 1, 2020, until further notice. Indexation is not applied either, also until further notice, Jacobs said in the letter.

Although I understand your efforts to serve the interests of your members, your proposal as stated will not meet the conditions as imposed by the Netherlands. This will result in other measures being imposed in order to reach a reduction of 12.5 per cent on the package of employment benefits, which most likely will not serve the interest of members.

With regard to the national decree, the relevant legislation will go into effect as per the date decided on by the Council of Ministers and, if deemed necessary, will happen with retroactive effect. In addition, all existing rights and claims of your members will be respected.

Taking into account the similarities in both proposals, and in the interest of your members, I recommend moving forward that the agreed-upon measures be formulated as such:

Our original proposal to pay out 50 per cent vacation allowance for the years 2020 and 2021 is supplemented by introducing an annual compensation as of the calendar year 2022. The amount of the annual compensation does not exceed 25 per cent of the total of the vacation allowances owed for 2020 and 2021. These payments will take place until the total amount of the vacation allowances owed are fully compensated.

The amount of the annual compensation is subject to the future financial developments and liquidity position of government of St. Maarten. To be clear, the compensation only applies to those that are affected and will be given according to the current position and salary.

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PM Jacobs responds to unions on deferred vacation allowance pay - The Daily Herald