The Government reiterated its commitment to concluding negotiations over the outstanding industrial agreements with all public sector unions at a high-level meeting between the Cabinet and representatives of public sector unions and the Bahamas Chamber of Commerce on Saturday 24 August.

The important meeting paved the way for discussions to move forward with a factual understanding of the country’s economic outlook and the Government’s fiscal constraints, including the need to exercise spending restraint and reach sustainable economic growth targets.

“We take the unions’ concerns seriously, which is why we convened the first of its kind high level meeting to discuss the country’s economic and fiscal affairs with all of the unions. Moving forward, these kinds of discussions will be integrated into the budget planning process,” said Prime Minister the Most Hon. Dr. Hubert Minnis. “We want to learn from the past and make this kind of citizen dialogue happen in a proactive way,”

“Although union members were hoping to resolve individual issues, the purpose of Saturday’s meeting was to facilitate an open and frank discussion about the state of the economy, and to provide context for the Government’s position. We recognize that finalizing all outstanding industrial agreements with the relevant unions is a pressing concern and those negotiations must be concluded.”

At the meeting, a presentation by the Ministry of Finance outlined the country’s economic growth prospects, current employment conditions, the fiscal situation, government debt, the concrete steps being taken to reduce the deficit and debt levels, and strategies to boost growth.

The Government stressed to the unions the importance of achieving fiscal sustainability to enhance the social and economic benefits that can be maintained over the medium- and long-term.

It was also stressed that it is imperative that The Bahamas return to a more sustainable fiscal path. Expenditure restraint is crucial to this objective and if not achieved, it will have adverse implications for the entire economy.

The presentation also highlighted the significant risks associated with the failure to reduce the country’s deficit, including risks to economic growth and downgrades by international ratings agencies.

“While the economy is improving and job numbers are trending in the right direction, we are at the early stages of recovery. We must also be mindful that our country is very vulnerable to natural disasters and external economic shocks,” said the Prime Minister. “At all times we want to make decisions that are in the best interest of all Bahamians.”