An inter-union denounces government policy and will not participate in the traditional Labor Day meetings on Sunday, May 1.
In a lengthy press release, the inter-union bringing together Atia i mua, the UNSA, O oe tooe Rima, the CGT public service and the Solidaires trade union condemned the decisions considered “incoherent and contradictory” in view of inflation, the management pensions and the social protection.
The inter-union does not respond to the government’s invitation on 1 May 2022. The conditions for social dialogue to take place transparently and with respect for the various parties are not met.
We asked not to tax the consumption of low-income households, we were not heard… Today, the government finally seems to be aware of the destructive social effect of the high cost of living. We can only be pleased that the purchasing power of the vast majority of modest-income families in Tahiti and the islands is finally being defended.
Since the wrong vote on the contribution for solidarity, we have witnessed the ballet of incoherent or contradictory decisions. The official discourse on the essential balance of social accounts in December 2021 and March 2022 has given way to a discourse on the dangers of the global crisis and inflation, as if the government realized too late that Polynesia belongs to the world whose situation affects us with a delay.
The war in Ukraine is reducing supply, driving up the prices of energy, industrial and agricultural raw materials, the covid crisis is blocking world trade with the virtual closure of the port of Shanghai and the industrial zone of Shenzhen. The global crisis will have a lasting impact on Polynesia and nothing will be as it was.
We were lied to about the solidarity contribution that should yield 6 billion in 2022 about the need to finance solidarity and the workers’ scheme (first 14 then 9, today 6 billion without explanation) that should guarantee the payment of employee benefits.
No, the CPS has no problems paying out child benefit and retirement pension in October 2022. It has the money to provide all benefits from the employee scheme until the beginning of 2023. The only financing requirement is that of the RSPF for about 3.8 billion, of which more than 2 billion from the increase of the CST on January 1, 2022. 1.8 billion remained.
Why subject the population and companies to this solidarity contribution since 1 April 2022? It causes prices to rise, lowers household purchasing power, adds inflation to inflation. We then announce a plan to secure purchasing power against rising prices. There will still be a need to introduce rapid and effective controls against excesses. The PPN and PGC system will be extended to the islands. Finally !
The PGC are exempt from VAT (5%) and the new non-deductible CPS (1%). The list of products, which is currently being redefined by the country, is not available on the DGAE website. What is the logic? The price of PPN rises sharply because it is the margin and not the price that is being framed. Surely there was another way to fund solidarity with the poorest families while fighting rising prices and inflation?
The effect of the CPS is not yet visible in the price index. It will be in May, June. Combined with imported inflation, the general price rise will continue inexorably. The political power is claiming that this 1% tax will not be the cause of the price hike. Whether false or false, the effect of this non-deductible tax will be at least 3 to 6% on the final price the consumer pays.
Why are families and the economic recovery struggling? In accordance with the law, the government must proceed to the mechanical revaluation of the SMIG by 3.32% on May 1, 2022, which corresponds to the increase that the ISPF has identified in the retail price index for household consumption since December 1, 2021. The government states that inflation is of imported origin. But after consulting the figures, it appears that the main cause of the price increase is rental, insurance, leisure, transport, and that it is mainly of internal origin.
This second revaluation of the SMIG in a few months will undoubtedly not be the last in 2022 with the continuation of imported inflation and the effects of the solidarity contribution.
Are we going to know the situation of the 80s where the SMIG increased up to 4/5 times a year? How companies have been weakened by the “covid” crisis
will they support these successive increases? how are they going to create jobs?
The minister responsible for PSG announced the increase in the old-age pension in tranche A on Wednesday 20 April 2022. Yes, the board of directors exceptionally voted the day before on this revaluation to help retirees facing the general price hike.
Who pays ? schedule contributors. No costs for the country that will win even a slight reduction in the AOW pension (30 million) in 2022. The directors have agreed to increase the pension deficit A by 550 million and bring it to 3.5 billion by 2022 in solidarity with pensioners.
At the same time, the minister reminded the social partners of their obligation to balance the tranche A pension scheme when the administrators agreed, at his request, to increase the deficit of the scheme.
It does not propose to restore the balance, although it is empowered to do so in the name of the public interest. He preferred not to change anything and leave the deficits as they were during the vote on the RGS 2022 budget.
In addition, the minister in charge of PSG stated that he refused to take over the supplementary pension allowance (solidarity expenditure), financed for 800 million per year by labor contributions, on the grounds that the solidarity contribution had been reduced from 1.5 to 1 % does not make it possible to fund the ACR. But from the proceeds of this 2022 contribution, it will use 4 billion to the balance of the sickness branch of the Employees Scheme, which only needs 3.5 billion to make up its shortfall. There remains 500 million to be allocated to the ACR.
In addition, the minister announced a reform of the CST. Farmers, almost all of whom were previously exempt, will have to pay it from the first franc. Nothing about the reform of the CST for the liberal professions, the patented, the merchants whose participation in the solidarity effort, at equal income, is 3/4 times lower than that of the workers.
We always ask for fair financing of solidarity according to the principle: “Equal income, equal contribution”. Economic facts and mechanisms are stubborn and impose themselves on economic and social actors: to economic problem, economic response, to social problem, social response, to collective problem, collective response.
We feel that the Polynesian canoe is not ready to weather the storm without a cohesive short, medium and long term plan to help the people and the country emerge from the deep crisis that is hitting our door.
We recall our urgent demands in addition to the abolition of the solidarity contribution in its current form and the reform of the territorial solidarity contribution by January 1, 2023.
– the meeting of the social partners to prepare the reform of universal social protection by establishing a timetable, a transparent and shared working method, by collectively deciding which social benefit, reserved for employees, is financed by contributions at work, which benefit is financed by taxes when it is universal and benefits all Polynesians.
– the urgent validation of the pension reform options recommended by the COSR in its October 2021 report, in particular the merging of tranches A and B into a single scheme.
– the preparation of the transformation of the management of social benefits administered by the CPS into separate autonomous branches that will put an end to the globalized management of cash on 1/1/2023 in the existing bodies, then in the new governance of the social protection universal once the law of the country that established it is validated.
– the organization of health meetings to find ways of reforms to guarantee access to care for all Polynesians while leading to essential substantial savings.
– the organization of an institutionalized, regular, transparent, peaceful and respectful social dialogue.
– Finally, we await the implementation of the economic recovery plan to support the population and the Polynesian economy in the long term, support business in its fight against the effects of the global crisis and
Is price blocking in a short-term view the right answer? The country will not have sufficient resources for long. Ultimately, we will have to accept all increases, from bread to fuel to everyday products, with no prospect of a decrease.
We are also in favor of a collective pact that protects the population and the Polynesian economy as best as possible, and that makes it possible to deal with the global crisis by
ask all actors in society to participate in the collective effort.
The economic actors, the social partners, need to know quickly where they are going and on what basis.