Union leaders have reacted with dismay to plans to hike MPs pay by 30 percent after having to fight tooth and nail for much lower increases for their members.

Government MPs are split over whether they should accept the large pay rise recommended by an independent committee which would see basic salaries rise from $50,000 to $65,000.

The Government is expected to make a statement on the Parliamentary Pay Report by the end of the week on behalf of its MPs but the United Bermuda Party yesterday issued a statement saying it was opposed to the pay deal at this time.

Bermuda Public Services Union (BPSU) president Armell Thomas said the proposal for large hikes was baffling in the current economic climate.

He told The Royal Gazette: "What message are they implying to the public? In the summer unions fought tooth and nail for an extra one percent negotiation, arbitration everything.

"But they have an opportunity to vote it, not negotiate. There's a big difference."

Mr. Thomas said he would have no problem with MPs sanctioning a cost of living increase. "But 30 percent is not necessary. Well, we are negotiating and it just changes the whole picture, the whole mindset."

He said he feared overtime and jobs would be cut because of the economic downturn and he said Government needed to get its priorities straight.

"We need to triage what exactly is important." He questioned why a new $15 million swimming pool was being planned and said Government should concentrate on building the new King Edward VII Memorial Hospital.

And another union source also voiced anger at the proposed pay increases.

He said: "The fact they would even make it public is in very poor taste, when you have the economy like it is.

"But I suppose when you see what CEOs in America do they still want a big bonus these people have a different mindset."

The issue has attracted a storm of protest from the public angry about the suggested rise.

One PLP source said the Governing party was split on what to do. He said: "Feelings are strong on either side. There has been a lot of calling around between MPs."

The UBP said the proposal should be deferred because economic conditions do not justify it now. Leader Kim Swan said: "We believe a pay rise at this time particularly one of this magnitude and regardless of the reasons for it would send the wrong signal to the community.

"This is a time of great economic uncertainty. This is a time for financial discipline and belt-tightening at the personal and national levels.

"We appreciate that some Parliamentary members need the extra income. They are challenged to make ends meet like thousands across the community, but in this case, at this time the need to lead by example is paramount. This is our public duty."

If approved, such a rise would mean MPs' salaries had leapt by almost 65 percent since 2006, when they earned just under $40,000.

If the recommendations are approved, Cabinet Ministers will pick up $165,000 a year from next April, except for Finance Minister Paula Cox, who will receive $135,000, and Premier Ewart Brown, who will be paid $215,000.

The figures were drawn up by a board appointed by former Premier Alex Scott in 2006 and headed by former Postmaster General Clevelyn Crichlow.

Former United Bermuda Party MP Maxwell Burgess submitted a minority report recommending that MPs get $75,000 a year and that Cabinet Ministers pay be reduced to $90,000 per annum.

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