Trade unionist against suggestion to cap public sector wages as percentage of GDP

By Kimone Witter    

 

A suggestion for a cap on public sector wages as a percentage of gross domestic product (GDP) is not finding favour with trade union leader Vincent Morrison as the government prepares to start negotiations for the 2025/2028 compensation period.

 

Addressing the final Economic Programme Oversight Committee (EPOC) quarterly press briefing on Friday, chairman Keith Duncan said this recommendation comes against the background of growing concerns over the increasing share of public sector salaries relative to the nation's economic output.

 

He said projections indicate that public sector wages and salaries are expected to reach 12.8 per cent of GDP for fiscal year 2024/25.

 

But Mr. Morrison, who is president of Union of Clerical Administrative and Supervisory Employees, says the turnaround in the economy is partly due to the sacrifices made by public sector employees.

 

He is rubbishing the argument that the country's economic programme is under threat because of increasing wages.

 

"I am saying that Mr. Duncan's statement to cap it, that is to cap wages, is untimely, unreasonable and unfair to the Jamaican workers. What we want is free collective bargaining. But we must understand that industrial relations does not operate in a vacuum. If we're going to start the fight long before the fight starts, we're going to have a problem, in the sense that what we should be doing now is sitting down and look on the whole economic landscape in a more rational way," he suggested. 

 

Mr. Morrison said Mr. Duncan's proposal coupled with high inflation is a twin attack on wages in the public and private sector. 

 

"For example, the Bank of Jamaica is pushing 4-6 per cent inflation. That is not working because when you go to the supermarkets, when you go to the pharmacy, professional fees, etc, it's not 4-6 per cent you see the are seeing on the movement," he complained.