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The first sign of a possible political challenge by the labour movement to the 18 month-old Jamaica Labour Party government is on the horizon as the jobs of 22, 000 of the island’s over 100,000 public sector workers could face the chopping block.
Prime Minister Golding, the first JLP Prime Minister since the last general strike in 1985, threw down the gauntlet last week when he declared that it was either a wage freeze or the loss of 22,000 jobs.
This challenge could push the already weakened union movement further on its back foot. Generally, trade unions thrive in periods of income growth and employment creation. For most of the 1950 and 1960s and first half of the 1970s, the local trade union movement could guarantee that they would get wage increases ahead of cost of living increase. But IMF and free market directions have, for most of the period since then, placed a disproportionate share of austerity burden on labour.
Discussions between the Jamaica Confederation of Trade Unions (JCTU) and the Government of Jamaica (GoJ) continued last Friday over a wage freeze in nominal terms, but an 8 per cent cut in what the $115.4 billion allocated for public sector workers will be able to but this year.
Prime Minister Bruce Golding, who along with former minister without portfolio in the Ministry of Finance and the Public Service, Dwight Nelson, met with the unions on Friday, is contending that the government has no choice but to cut the public sector wage bill in real terms because the administration has to find the resources needed to pay the debt in real terms.
The administration supported its position by allocating $309.00 billion or 56.4 per cent of the budget to service the debt this year. Interest charges have been hiked by 28.0 per cent from $124.1 billion last year to a whopping $159.0 billion this year, while principal repayments moved from $144.00 billion to $150.0 billion.
Speaking in an interview recently, Lambert Brown, vice president of the University and Allied Workers Union (UAWU) contended that while the unions are not averse to a wage freeze in nominal terms and a wage cut in real terms this is something which would have to be achieved at the bargaining table and not unilaterally imposed.
He further argued that a unilateral imposition of this freeze and cut would be against the convention of the International Labour Organisation (ILO). Brown also pointed out that there is still time to work out a proper agreement at the bargaining table because most of the past memoranda of understanding were signed during the month of April.
Speaking in a television broadcast to the nation last Sunday, the Prime Minister announced a freeze in public sector wages in nominal terms and cut in real terms. At the same time, he pointed out that he would cut his $5.8 million per annum salary by 15 per cent or just over $810,000, and that he would be asking all Members of Parliament to take a 10 per cent salary cut. So far, there has been no widescale endorsement of the Prime Minister’s proposal from Members of Parliament. However, some councillors in the St Catherine Parish Council and the Mayor of the KSAC have come out in support.
The trade union movement, however, barked the following day, stressing that there was no agreement to take the freeze and cut, although discussions took place between themselves and the administration. Brown further argued that the unions had indicated to the administration that they would meet on Wednesday to discuss the matter before responding, therefore the Prime Minister’s announcement was premature.
The Prime Minister, however, countered by saying that he made the announcement because there is no room for maneuvering due to the financial constraints and the need to service the debt.
Brown is, however, insisting that a wage freeze and cut cannot be imposed because this is a breach of contract and the collective bargaining process. He also concluded by stressing that the current Prime Minister’s dictatorial approach to the problem is contrary to those of former Prime Ministers Michael Manley, PJ Patterson and Portia Simpson Miller.
http://www.sunheraldja.com/article/show/2502
Prime Minister Golding, the first JLP Prime Minister since the last general strike in 1985, threw down the gauntlet last week when he declared that it was either a wage freeze or the loss of 22,000 jobs.
This challenge could push the already weakened union movement further on its back foot. Generally, trade unions thrive in periods of income growth and employment creation. For most of the 1950 and 1960s and first half of the 1970s, the local trade union movement could guarantee that they would get wage increases ahead of cost of living increase. But IMF and free market directions have, for most of the period since then, placed a disproportionate share of austerity burden on labour.
Discussions between the Jamaica Confederation of Trade Unions (JCTU) and the Government of Jamaica (GoJ) continued last Friday over a wage freeze in nominal terms, but an 8 per cent cut in what the $115.4 billion allocated for public sector workers will be able to but this year.
Prime Minister Bruce Golding, who along with former minister without portfolio in the Ministry of Finance and the Public Service, Dwight Nelson, met with the unions on Friday, is contending that the government has no choice but to cut the public sector wage bill in real terms because the administration has to find the resources needed to pay the debt in real terms.
The administration supported its position by allocating $309.00 billion or 56.4 per cent of the budget to service the debt this year. Interest charges have been hiked by 28.0 per cent from $124.1 billion last year to a whopping $159.0 billion this year, while principal repayments moved from $144.00 billion to $150.0 billion.
Speaking in an interview recently, Lambert Brown, vice president of the University and Allied Workers Union (UAWU) contended that while the unions are not averse to a wage freeze in nominal terms and a wage cut in real terms this is something which would have to be achieved at the bargaining table and not unilaterally imposed.
He further argued that a unilateral imposition of this freeze and cut would be against the convention of the International Labour Organisation (ILO). Brown also pointed out that there is still time to work out a proper agreement at the bargaining table because most of the past memoranda of understanding were signed during the month of April.
Speaking in a television broadcast to the nation last Sunday, the Prime Minister announced a freeze in public sector wages in nominal terms and cut in real terms. At the same time, he pointed out that he would cut his $5.8 million per annum salary by 15 per cent or just over $810,000, and that he would be asking all Members of Parliament to take a 10 per cent salary cut. So far, there has been no widescale endorsement of the Prime Minister’s proposal from Members of Parliament. However, some councillors in the St Catherine Parish Council and the Mayor of the KSAC have come out in support.
The trade union movement, however, barked the following day, stressing that there was no agreement to take the freeze and cut, although discussions took place between themselves and the administration. Brown further argued that the unions had indicated to the administration that they would meet on Wednesday to discuss the matter before responding, therefore the Prime Minister’s announcement was premature.
The Prime Minister, however, countered by saying that he made the announcement because there is no room for maneuvering due to the financial constraints and the need to service the debt.
Brown is, however, insisting that a wage freeze and cut cannot be imposed because this is a breach of contract and the collective bargaining process. He also concluded by stressing that the current Prime Minister’s dictatorial approach to the problem is contrary to those of former Prime Ministers Michael Manley, PJ Patterson and Portia Simpson Miller.
http://www.sunheraldja.com/article/show/2502