The Island’s unions “understand the challenges” facing the Government’s cash-strapped pension scheme — but remain opposed to outsourcing or privatising for downsizing Bermuda’s civil service.

The remarks came from Bermuda Trade Union Congress head Alan Wilkinson in the wake of meetings with Finance Minister Bob Richards on the implications of cost-cutting measures proposed by the Spending and Government Efficiency (SAGE) Commission.

Mr Wilkinson said the BTUC would need “more clarification as to the impact it would have, how many jobs would be affected” before backing any move toward privatisation.

“At this time we are not in support of it,” the BTUC head said of the suggestion, which include privatisation of quangos and Government Departments.

Mr Wilkinson spoke after union representatives met with Mr Richards, along with Financial Secretary Anthony Manders and Acting Deputy Head of the Civil Service Cherie Whitter.

“It was just an introductory meeting, at which we replied to the Minister along the same lines,” Mr Wilkinson said, adding that the BTUC needed to see data for each department for which privatisation is proposed.

The BTUC is also withholding support on the issue of mutualisation, which Mr Richards has put forward as a means of bringing the competitive impetus of the commercial sector into the civil service.

However, the union group recognised that the pensions are underfunded — and said it was open to working with Government.

“The BTUC is also pleased to hear that the Government will not be considering moving from a Defined Benefit Plan to a Defined Contribution Plan,” Mr Wilkinson added.

He said the two sides had agreed to meet again to discuss downsizing measures, but that no concrete date was agreed upon.