Government should seek revision of Wage to Gross Domestic Product target - JMA
Head of the Jamaica Manufacturers’ Association (JMA), Metry Seaga says he believes the government needs to seek a revision of the Wage to Gross Domestic Product target set under Jamaica’s programme with the International Monetary Fund (IMF).
Jamaica is expected to achieve a Wage to Gross Domestic Product (GDP) ratio of nine per cent or less by 2019.
However, the Government has been at loggerheads with public sector unions now pushing for a wage increase.
The government has said it can only afford a six per cent increase over two years, but unions have rejected this with rank and file police currently engaged in a sick-out to press their claim.
Speaking on Real Buisness on Power 106 FM last evening, Seaga said his personal view is that the government is trying to achieve a magical target in relation to the wage to GDP ratio.
He says the government has a problem and the best solution appears to be to seek a relaxation of the target while it works on growing the economy.
Seaga says he will be putting his position to the rest of the Jamaica Manufacturers’ Association to see whether there is support for the proposal.
The IMF had extended the timeline from 2015/16 to 2016/17 in March 2015, after former Minister of Finance and Planning, Dr Peter Phillips, admitted that meeting the targets set by the agreement would be challenging, following new salary agreements with public sector trade unions.