Monday, October 10, 2011

‘Pay hikes to up inflation by 40 pc’

The ripple effect is coming.....

‘Pay hikes to up inflation by 40 pc’:

Realistic study on ‘demands’ vital

KUWAIT CITY, Oct 9: The government’s response to strikes and pay hike demands will cause an economic disaster and the inflation rate will jump to record levels, “almost as high as 40 percent in case salaries are increased without a realistic study,” reliable sources told Al-Shahed daily.

Prices of 94 percent commodities in the market increased by nearly 70 percent and they may rise by another 30 percent by January next year, said sources, adding “the middle class would be completely crushed as people in this segment won’t be able to afford such high prices.”

Sources called on the government to curtail expenditure and avoid the coming crises, saying the amount of money being spent is outrageous, considering the fact that there are no achievements to show for it.

The current salaries guarantee a good life to citizens, so there is no need to increase salaries and harm our economy, they said.
Sources explained that nearly KD 9 million will have to be added to the budget in case salaries are increased. Moreover, this will lead to a hike in inflation and the State will have to intervene and spend public money once again.

Nearly 95 percent of Kuwaiti employees in the government sector are convinced that salary hikes without increase in productivity would be a huge mistake that will cost the country and the coming generations dearly.

Sources also criticized the Kuwaiti workers unions for ignoring the higher interests of the country.

"Salary hikes without increase in productivity" nice way of saying you get paid even more to do nothing.

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