THE JAMAICA Employers' Federation (JEF) is concerned that the Government has granted huge salary increases to Parliamentarians and certain public sector employees, without regard for existing unresolved salary and wage negotiations currently under way for several workers in the employ of government.
The JEF is also questioning the wisdom of these increases at this time when the country is facing grave economic challenges. What is of equal concern is that while these increases have been granted, the government is again suggesting to some public sector employees that they should exercise restraint. Can the government now speak with any moral authority, concerning restraint in salary demands? The underlying question is can the Government in all fairness ask their workers to be content with the level of increases being offered?
In a statement, the Federation is not attempting to undervalue the jobs of Parliamentarians, nor are we arguing that having regard to their levels of responsibilities, increases are not justified. "We are wary that this excessive increase will lead to higher than anticipated wage demands in both the private and public sector, thus setting the stage for industrial conflict," the statement said. "This could also lead to possible higher than expected inflation rates (driven by higher than budgeted salary increases/demands). This will in turn throw the current economic model in a tailspin and also lay to waste the strategic plans made by many organisations (both public and private). This could lead to the undermining of any strategic plan, designed to help the country recover from its present difficulties."
The Federation said that it noted the Prime Minister's appointment of a committee to examine whether the formula, which now exists to adjust the salaries of Parliamentarians, should be maintained, abandoned or changed. But it called on the Prime Minister to broaden the Terms of Reference of the Clarke Committee, to include the present increases, with a view to determining if a roll back is necessary, at the this time.
The Jamaica Employers' Federation urges the Committee in carry out its job to also consider the following:
The country's ability at this time to pay.
The question of performance based pay.
The social and economic implication of the size of the increases granted.
How are Parliamentarians' salaries addressed in other countries?
That many Parliamentarians have their own businesses, which generate income for them.
That Parliamentarians' should think of service to country first as against self.
Consider whether another body beside Parliamentarians should determine their salaries, or if it should be included on the ballot at election time.
Over the last three years, most private sector organisations have based the level of salary increases granted on productivity improvements and the inflation rate. We think this is an issue, which must be quickly adopted by the government. Should salary increases be granted to members of the Cabinet based on GDP growth rate? Should Parliamentarians' salaries be based on the level of GDP?
The JEF statement added: "The Federation wishes government to recognise that most organisations, with the co-operation of trade unions, have been agreeing on wages/salaries in keeping with the level of inflation. In the context of the Social Partnership, can the government call for increases in salary to be linked to performance/productivity? How then can Government, in all reality, talk of Social Contract when it is sending the wrong signal to the social partners even before any discussion on this subject begins.
"Within the context of recent calls for the establishment of a social compact (partnership), the Federation is calling on the Prime Minister to broaden the terms of reference of the committee to examine the just granted salary increases and the above questions raised. This will send a clear signal that the government is serious about belt-tightening and ready to do all in its power to help move the country forward, with the assistance and support of all the social
partners."
