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The Government and the umbrella group representing the island's main trade unions appear to be a collision course in the wake of reports that National Housing Trust (NHT) mortgage rates could go up.
The Jamaica Confederation of Trade Unions (JCTU) has signalled that it will strongly resist any attempt to increase the cost of borrowing from the NHT.
Prime Minister Bruce Golding recently hinted that a hike in mortgage rates should not be ruled out in light of the Trust's deteriorating financial position.
But the JCTU says the NHT should look at other options instead of increasing rates.
Vice-President of the Confederation, Danny Roberts, says the Trust is obliged to provide affordable funding to borrowers.
"In the context where inflation is running close to 17 per cent for the year any increase in interest rates would have a devastating impact, not only on existing mortgagers but it would severely affect the Trust's ability to provide future mortgages to potential homeowners and certainly the end result of that would be an erosion in the quality of life for the Jamaican workers," said Mr. Roberts.
He says the issue will be a major point of consideration in the negotiations for new Public Sector Memorandum of Understanding.
It was recently revealed that the NHT has a $500 million deficit.
Late last week NHT Chairman Howard Mitchell admitted that unless corrective measures are immediately pursued the Trust could be left in a precarious state.
The Jamaica Confederation of Trade Unions (JCTU) has signalled that it will strongly resist any attempt to increase the cost of borrowing from the NHT.
Prime Minister Bruce Golding recently hinted that a hike in mortgage rates should not be ruled out in light of the Trust's deteriorating financial position.
But the JCTU says the NHT should look at other options instead of increasing rates.
Vice-President of the Confederation, Danny Roberts, says the Trust is obliged to provide affordable funding to borrowers.
"In the context where inflation is running close to 17 per cent for the year any increase in interest rates would have a devastating impact, not only on existing mortgagers but it would severely affect the Trust's ability to provide future mortgages to potential homeowners and certainly the end result of that would be an erosion in the quality of life for the Jamaican workers," said Mr. Roberts.
He says the issue will be a major point of consideration in the negotiations for new Public Sector Memorandum of Understanding.
It was recently revealed that the NHT has a $500 million deficit.
Late last week NHT Chairman Howard Mitchell admitted that unless corrective measures are immediately pursued the Trust could be left in a precarious state.