By Al Edwards, Business Co-ordinator
Minister of Labour and Social Security Dean Peart (right) talks with Herbert Lewis, president of the Jamaica Employers' Federation (JEF) and Bernita Locke, JEF second vice president, at the 2002 Salary Survey launch for Executive and Managerial Staff at the Terra Nova Hotel, St. Andrew. - Contributed
THE JAMAICA Employers' Federation (JEF) salary survey for executive and managerial staff 2002 reveals that salary increases are now firmly in the single digit range, with most employers using the prevailing inflation rate as a barometer.
The survey was launched last week at the Terra Nova Hotel in St. Andrew. It represents the JEF's aim to keep employers informed on labour market issues and present a picture of the labour market relating to performance-related pay, trends in compensation, and the underlying factors contributing to salaries and benefits increases.
"Most employers in Jamaica today are using the inflation rate as a gauge to determine salary increases," the JEF's industrial relations officer Chris Campbell told Wednesday Business yesterday. "With inflation rending down, increases are now in the single digit range. Pay increases are now linked to performance with employers generally linking increases as an incentive and as part of a pay package."
What is clear is that with inflation rates falling, employers find themselves able to cut down their remuneration bill and generally keep them in the 4 to 7 per cent range.
The salary increase for 87 per cent of the companies interviewed for the year 2000/2001 was less than 10 per cent, while 36 per cent of the companies gave less than 5 per cent increase for the period 2000/2002, and 7 per cent gave no increase for 2000/2002.
The projected salary increase for up to the year 2005 is expected to show single digit figures. Ninety per cent of companies predicted an increase of less than 10 per cent for 2002/2003. These projected increases are in keeping with speculation that inflation rates will remain below 10 per cent.
In addition, the survey revealed that there has been a reduction in types of allowances granted, and an increase in the use of performance-related pay schemes.
This year 156 companies were interviewed, representing the major economic sectors. The survey featured salary by number of employees, salary by turnover, salary by sector, and projected salary increases to 2005.
Executive director of the JEF, Jacqueline Coke-Lloyd, said salaries in `Jamaica, particularly at the executive level were no longer based on a simple fixed arrangement. This, she said, allowed employers to attract personnel who are willing to accept challenges and take risks and be suitably rewarded for doing so.
President of JEF, Herbert Lewis, in his address at the launch of the survey, said he was concerned about the introduction of the National Health Fund which is to be implemented soon. He restated JEF's view that employers and employees who are already overtaxed would be required to fund the scheme, while those in the informal sector will benefit from the health fund although they would have made no contributions.
Mr. Campbell said there was reason to believe that Pay as You Earn (PAYE) contributors would have to bear the brunt of the new health fund, and that the questions to be asked are just who is going to pay for the fund and whether it could sustain itself. He suggested that the National Investment Fund could provide the necessary support for this new health initiative.
