Yesterday’s march on the Cabinet Office came after a year-and-a-half of talks aimed at reducing government spending while preserving jobs and wages.

In July 2013 public sector workers and Government agreed to a two-year package consisting of a 4.6 per cent reduction in take-home pay and one furlough day per month in an effort to save the Government $21 million annually.

The five point package also reportedly included an incentive programme for early retirement, a wage freeze until this year and the creation of a tripartite economic committee. Government was meanwhile tasked with asking public sector organisations such as the banks, Belco and insurance companies to work with public sector workers who may be facing economic challenges due to the loss of income.

The agreement was made on the understanding that Government would not seek redundancies or layoffs until March 2015 and — if such actions became necessary — Government would first consult with the BTUC.

BTUC president Allan Wilkinson said at the time that Government had initially sought to implement a 15 per cent cut in wages and salaries, and that the package was a compromise to both help Government meet its cost cutting target and limit the impact on take-home pay.

The tripartite economic committee was created and has met on several occasions since October 2013, and Government has announced it had worked with grocers and insurance companies to offer various discounts.

In February 2014, Bermuda Public Service Union president Kevin Grant credited the agreement with cutting the government budget by 4.6 per cent, representing around two-thirds of budget cuts.

With the package set to expire, the BTUC and the Government met again in October and created a Budget Reduction Working Group tasked with creating a five per cent reduction in spending for the coming financial year.

According to a report by the BPSU, the unions created a draft proposal offering savings of between $65 and $85 million, of which Government officers found that $37 million of the proposed savings were practical. Meanwhile the collective estimated savings proposed by all government departments combined amounted to $5 million.

The report stated that Government again met with the BTUC on January 14 and it was during this meeting that Premier Michael Dunkley questioned if the furlough days could be extended beyond March.

While the BTUC said it would not support extending the furlough days, Government stated in a letter that furlough days were necessary to achieve cost-saving targets. Government asked the BTUC to reconsider their position or Government would be “forced to take steps” to reduce spending, including potentially reducing salaries.