Employers and local businesses have largely welcomed the cost-cutting deal agreed between the Government and its employees.Both the Bermuda Employers’ Council (BEC), and the Chamber of Commerce, praised the Memorandum of Understanding which should see the costs of running the Government trimmed by about $50 million at a minimum.Government and the Bermuda Trade Union Congress agreed a five-point MOU for the next two years which included a day of furlough unpaid every month, an early retirement package, and a pledge to set up a tripartite committee to include business, unions, and Government, which would advise Government on economic matters.However, Chamber of Commerce president Ronnie Viera said more savings would be necessary to tackle the Government’s deficit and BEC president Keith Jensen expressed concern that some of the intended savings may not be realised because the agreement allows for staff to be paid to ‘fill in’ for others on unpaid days.“The agreed savings promised through Government employees not being paid for a day per month (12 days/year) are likely to be reduced if Government pays for staff ‘filling in’ for each other on such days,” Mr Jensen said. “There are savings only when no one is paid for the day and no one is paid to ‘fill in’.“It will certainly help if managers lead on their unpaid day, and come into work nevertheless.”The Chamber’s Mr Viera described the signing of the MOU as a “positive development”.“The unions are to be commended for approaching the discussions in a constructive and co-operative manner,” Mr Viera said. “No one wants to take a pay cut. However, as has been mentioned in the past, private sector employees have been feeling this pain for a few years now.“Having said that, the Government’s annual deficit is $300 million and while $50 million is certainly helpful it is simply not enough. Real action on the recommendations arising out of the SAGE Commission will be critical to achieving additional reductions to the deficit. The Chamber is already involved in other committees and I am sure we will participate in the proposed tripartite committee whenever it is formed.”The BEC said that while the agreement may have its detractors, it “resets the stage for cost control, drives home the need for constant evaluation of Government contracts, and the need for efficiency and productivity/performance of Government employees”.Mr Jensen added that his organisation also welcomed the tripartite economic forum.“The trade unions and the BEC have advocated for an Economic Consultative Group of Trade Unions, Employers and Government to be formed for several years,” he said. “It is particularly difficult, we think, for the current Government and Trade Union(s) to consult with 100 percent mutual trust.“After all, there was overt support for the former Government, but the trust gap from the early days of the new Government may be resolved through positive efforts by everyone. We are all in the same economic boat. It is up to the spirit and drive of Bermudians to pull ourselves out of this prolonged recession, and significant public debt.”And he commended the parties’ agreement to engage in dialogue in the event of perceived non-compliance by either party.“The agreement to have dialogue in disputes hopefully will avoid a repeat of the unionised staff in essential services (Works and Engineering, garbage collectors) going on strike. Bermudians are responsible for the amount of turmoil in labour relations and the rededication to solving differences without conflict is one key to improving our fragile economy,” Mr Jensen said.He added that the tripartite economic forum had its work cut out for it, given the dismal state of the economy.The agenda should include agreeing on and developing economic indicators which would enable better decision making by unions, employers and government, finding areas for economic expansion, ensuring that economic data is released in a timely manner and “reaching a common ground of mutual trust among participants”.