Trade unions unhappy with push to repeal redundancy payment law

By Kimone Witter    

 

Some trade union leaders say they are prepared to challenge a push by the private sector for the repeal of the Employment (Termination and Redundancy Payments) Act.

 

Helene Davis White, General Secretary of the Jamaica Association of Local Government Officers (JALGO), says the calls have been increasing as discussions on the implementation of unemployment insurance progress. 

 

Speaking Monday on TVJ's Smile Jamaica, Mrs. Davis White outlined the position of the private sector which has complained that redundancy payments are costly.

 

The proposal by the private sector is for unemployment insurance to replace redundancy payments.

 

"The calls, I think, have strengthened since we have been having discussions around unemployment insurance, which would provide workers who are out of jobs for varying periods of time to be able to collect portions of their salary over that period of time. So the view of the private sector is that that is enough and they should not be called upon to make redundancy payments. Of course, from the union perspective, we disagree." 

 

Mrs. Davis White says the two social protections should be separate. 

 

The establishment of unemployment insurance is one of the recommendations of the Labour Market Reform Commission.

 

Mrs. Davis White said she anticipates that the private sector will raise the issue at a meeting of the Labour Advisory Council, on which representatives of employers, unions and the government sit.

 

She has suggested that employers create a fund to make the payments under the unemployment insurance scheme.

 

"But certainly from the union's perspective, we will continue the agitate to ensure that the Redundancy Payment Act remains in force. And what we have been saying to employers if it is that there is a particular law that governs your employment of workers, then what you should be doing is planning for that through whether insurance or some other means of establishing a fund, so that when that time comes you can make the payment, but you cannot just wish away the fact that the law is in place and you need to abide by the law," she maintained.