Without a doubt, the Salaries Review Commission (SRC) wields significant power as the body that determines the earnings of this country’s top officials.
However, the 120th report, released in November last year, revealed the SRC’s authority to not only give but also to take away, as was the case of the offices of the Director and Deputy Director of the Police Complaints Authority (PCA).
Unlike the vast majority of those listed in the report, for those two positions, currently held by David West and Michelle Solomon-Baksh, the SRC recommended decreases in pay.
In the case of the Director, the salary would drop from $38,540 to $33,700, before rising to $37,005, a net drop of $1,535, while in the case of the Deputy Director, the initial drop is from $33,570 to $29,100, before rising to $31,954, a net drop of $1,616.
But while these salary reductions impact the office of the PCA, the SRC report made it clear that the “incumbents would continue to enjoy current compensation and be ‘red-circled’ so as to ensure that they are not disadvantaged by way of a reduction in compensation.”
What this effectively means is that both West and Solomon-Baksh would continue to earn their current salaries. However, those who would replace them in the future stand to earn less.
The legal challenge being brought by West and Solomon-Baksh, therefore, is to determine why the SRC has depreciated the values of these offices without consultation with the incumbents.
The SRC had partly explained its determining process, done in two parts: Firstly, a job evaluation score, and secondly, a compensation survey using market data.
To determine salaries, the SRC used the offices of Permanent Secretary, MP and Puisne Judge as public sector anchors. Those offices served as the reference rates from which all other job compensations were determined.
The SRC then looked at how private sector jobs were rated against private sector anchors and sought to make comparative applications within the public sector.
Therefore, the SRC would have determined that when compared to the private sector, the distance between the office of PCA Director and its respective public sector anchor was wide enough to warrant a lesser salary.
What remains unclear, though, is what public sector anchor the SRC used to determine how far away the PCA Director’s office is on the salary scale.
Furthermore, the SRC’s report did not reveal what comparative private sector anchor and salary scale were used in determining the PCA’s salaries.
If, for example, the comparative private sector anchor was a bank CEO, this would suggest that the salary of the PCA Director should be more in keeping with a senior risk officer instead of a senior vice president.
Since the gap between the latter post is further away from the CEO than that of the former post, then it stands to reason that the salary gap would also be further away.
To apply such a formula to the public sector without telling us what the anchor is and why the PCA’s office required a further distance has created a transparency issue.
West and Solomon-Baksh’s argument is that the SRC’s valuations were unfair and that they did not give the officeholders the opportunity to be heard, as was done prior to the 98th SRC report, which was published in 2013.
Given the important work done by this office, it is even more critical that the SRC use this opportunity to better explain how its compensation survey was applied in this particular review.