IMF does not support Grenada’s Trade Unions Campaign to remove FRL

Thursday, March 23, 2017 3:17 PM- George's, Grenada

ST. GEORGE’S, GRENADA, March 23, 2017 – GIS:  The Washington-based International Monetary Fund (IMF) says it does not support moves by Grenada’s trade union movement to have a law to curb government spending removed.

Mission chief of an IMF delegation wrapping up a visit to Grenada this week, Nicole LaFramboise, says the Fiscal Responsibility Legislation (FRL) should remain, since it forms a critical part of controlling state spending.

The umbrella Trade Union Congress (TUC), who met with the IMF delegation, has been clamouring for the removal of the law, on the grounds that it impedes their right to free bargaining.

But the IMF mission chief, who has been holding discussions on the sixth review of Grenada’s IMF-supported programme, does not agree.

“I would not change the act. I would not make any changes to the current act,” the mission chief declared.

“It has just started and its critical for confidence and credibility and sustaining the progress that has been achieved. And I do not think that that particular element of it inhibits their ability to bargaining, collectively, freely”.

During a news conference on Wednesday, LaFramboise disclosed that the government had met all of the performance criteria and structural benchmarks of the programme.

The role of the FRL was also seen as crucial in helping Grenada to achieve positive economic indicators.

“What the unions are seeking to achieve can still be attained under present law.But there must be an element of growth in a particular area to justify it. If we get more grants, the fiscal room broadens then more can be accommodated which is the point I was making to the unions,”said LaFramboise.

“We are on the table together. You are monitoring government performance, you are part of the social partnership, you know all that is being achieved. We are going to make decisions together. But it does not inhibit what they are trying to achieve”.





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