Serem: We have not asked civil servants to take pay cuts

By The Standard on Sunday

Kenya: Salaries and Remuneration Commission chairperson Sarah Serem has assured civil servants that their salaries would not be slashed as a way of managing the public wage bill. Serem however said by supporting President Uhuru Kenyatta’s move on pay cut, they were only triggering debate so that Kenyans can talk about the matter and offer solutions on the way to handle the crisis.

She denied that the head of state had dictated to the top civil servants on the pay cut, adding that the commission had not given any direction or advice on the pay cuts.

In an interview with The Standard on Saturday, Serem said the move by President Kenyatta to slash his pay and those of parastatal chiefs was of their own volition and not SRC’s policy.

She pointed out that her commission was now interested in formulating a public service wage bill policy that will be anchored in law.

She said SRC was aware that pushing for reduction of salaries for civil servants could affect the public service and also lure civil servants to the private sector. Here are excerpts from her interview with The Standard on Saturday reporter Faith Ronoh.

STANDARD ON SATURDAY: Had you been in discussion with the President before he announced the pay cut issue? Why did you immediately announce that you were going to also take a pay cut? Were you coerced?

SEREM: We were not in discussion with the President over the issue of pay cut. The President’s decision and that of his entire Cabinet to take pay cuts is a good gesture by the leadership of this country. It shows the leadership is concerned about the burgeoning public wage bill and the country is in such a grave situation. We need to put all our efforts to manage the wage bill. The act by the President is symbolic and laudable. My interpretation of it is that the President was making a statement that something has to be done for the good of the country.

 Do you believe the slashing of salaries for civil servants is the way to address the wage bill crisis?

The Commission has not at any one point talked about slashing salaries. By launching the national dialogue on public wage bill, the Commission was simply triggering a debate on how to manage the public wage bill which has been rising over the past six years. We want Kenyans to tell us how we can best manage our public resources.

Your commission has been given the mandate to rationalise salaries for all public servants. Have you carried out this mandate to its conclusion by now? What is the progress?

One of the Commission’s mandate is to establish equity in remuneration and benefits in the Public Service. As a prerequisite to objective remuneration setting, the Commission has to conduct job evaluation exercise to ensure objectivity and transparency in remuneration setting and as a means of addressing the existing disparities and inequities. The Commission had advised that all the past Collective Bargaining Agreements (CBAs) be concluded by June last year. We are also looking at having a systemic way of addressing CBAs to ensure they are dealt with in one cycle.

For the President to dictate to public servants and parastatal heads to take a pay cut, don’t you think he is encroaching on your mandate?

I was there when the President announced this and I don’t think he dictated. He made a suggestion asking the parastatal chiefs to take a pay cut. It is only right for the public to lend support to the President on this to show our commitment in removing this burden which we are finding increasingly difficult to carry. 

Your focus seems skewed to slashing the salaries for top civil servants and MPs. Why are you not spending more energy, too, on upping the salaries and wages for the low-level calibre workers in the public sector?

No. It needs to be clear that the Commission has not given advice or direction on salary cuts. Right now of greatest interest to the Commission is the formulation of a public wage policy that will be anchored on legislation. The country needs a policy that will address several issues revolving around the public wage bill and offer the country lasting solutions brought about by the huge wage bill. SRC has not talked about salary reductions.

By cutting public servants’ salaries, don’t you think this will make the Government lose key talents to the private sector?

The Commission has not offered wage cuts as a solution. What the Commission is keen to have is a situation where the labour market is not distorted by either the higher pay in private or public sector. This will be best answered by coming up with a comprehensive public wage bill policy that will also address areas like productivity and performance, equity, efficiency, service delivery among other things.

If this fight for a sober-wage society doesn’t succeed, what step will you take?

We are confident that at the end of all these engagements, we will be able to have a policy. That is our goal. If a policy that is developed and owned by majority of Kenyans is put in place, it will be the beginning of a journey to manage our public wage bill in a sober and organised way.

Is the rationalisation only focused on salaries or even allowances?

The Commission is carrying out a study on allowances and in a few months we will be able to address it too.

The government is losing millions of shillings to corruption and wastages…don’t you think this too should be addressed before we get to salary cuts?

Absolutely. We need to address the corruption, wastages, ghost workers and seal all the loopholes. We expect the public will make suggestions on all these too.

If salary cuts indeed trickles down to the low cadre public servants, do you think they will they buy the idea and if not, what will be the way forward?

Again the Commission would like to assure public servants that SRC will not impose salary cuts on them. In fact the Commission is keen to conduct a job evaluation that will address inequities in remuneration and disparities and ensure equal pay for work of equal value.