On the eve of a union meeting this morning to discuss the future of furlough days, the Bermuda Government has said that further savings are needed to meet its debt reduction plan.

In a statement released yesterday afternoon, the Bermuda Government said that it respects the Bermuda Trade Union Congress (BTUC) choice to take the issue to its members, emphasising that the furlough option was intended to protect members’ jobs and pensions.

However, Michael Dunkley, the Premier and Minister for National Security, warned the unions of the negative impact that the disruption of public services may have on the community, especially given the timing of it at 10am.

“We are very grateful for the contributions of the working group as well as technical officers across the public service for identifying cost-cutting proposals,” the Premier said.

“We acknowledge that a great deal of work has been undertaken and we appreciate all of the dedication and commitment that the unions have provided towards not only this process but towards ensuring the strong representation for their members.

“At this stage, however, we need to factor in possible savings from a furlough day or a furlough-day equivalent. It is not the Government’s desire to displace public officers at this time, but the stark reality is that we cannot maintain employment numbers at the existing salary levels without the furlough day.”

The statement noted last October’s meeting of the Budget Reduction Working Group made up of BTUC members and government representatives to identify opportunities to achieve a 5 per cent savings on Government’s operational budget.

“The collaborative effort generated a proposal that could yield an estimated $37 million,” the statement said.

“Other savings have also been identified. Notwithstanding, it should be stressed that with this level of savings, Government will still incur a deficit of over $200 million in the upcoming 2015-2016 National Budget, which will add to the Government’s current debt of $2.185 billion.

“The reality is that the Government needs to find further savings to meet its deficit reduction plans, as the current deficit and debt levels are not only unsustainable but economically and fiscally imprudent.”

Government noted that the working group’s discussions ended last month, while the next Budget is due in a matter of weeks.

The statement continued: “The Government respects the BTUC’s decision to put the furlough day proposal matter before its members.

“The furlough option, which the BTUC agreed to previously, is designed to preserve their members’ jobs and protect their pensions; any other option could impact the same negatively. In light of tomorrow’s (Monday) combined full membership meeting, the Government calls on the unions to be mindful of the impact of the disruption of services on the community given the time of the meeting.

“Also, the Government acknowledges the efforts being undertaken by the various unions to ensure that the public schools and rest homes have adequate coverage during the meeting period.

“As an added note, it is Government’s intent to call upon all sectors of the community to contribute to the budget reduction and savings process and it is hopeful that the leadership of the BTUC and others will continue to lend their support to the Government to conclude this collaborative process.”

The Ministry of Education later confirmed that all public schools will be open today. School principals and administrators will be on site at each school, with students expected to report at the normal time.