NelsonTHE JAMAICA Employers Federation (JEF) is proposing unemployment insurance, funded by Government, workers and employers, to replace the requirements for severance pay under the Employ-ment (Termination and Redundancy Payments) Act.
There are indications, however, that the proposal will not get the support of some members of the Federation, much less the trade unions.
JEF President Herbert Lewis made the suggestion to newly-appointed Minister of Labour and Social Security, Horace Dalley, when the Minister paid a visit to their head office, Ruthven Road, Kingston on Thursday.
"A number of organisations have suffered tremendously (from having to) pay separation benefits," Mr. Lewis remarked. He asserted that streamlining of businesses to ensure competitiveness and "ultimately create more jobs" is stunted by the provisions of the current legislation.
"That money could remain in the company to keep the company alive and to ensure that jobs are secure," he said.
Expanding on the idea after the meeting with the Minister, Mr. Lewis told The Gleaner that the National Insurance Scheme (NIS) could be restructured to include unemployment insurance and even a National Health Scheme. Employers would be prepared to make contributions to the scheme, which would also require worker and Government contributions.
But, JEF member and Caribbean Cement Company's Industrial Relations Officer Silvera Castro said he foresaw "wild cat strikes," if any such significant alteration was made affecting the protection of workers' rights.
And, Jamaica Confederation of Trades Union vice president, Dwight Nelson, says that the unions would not accept any amendment to, or discarding of, the Act.
Mr. Nelson said that the Act was promulgated to prevent "the frivolous" dismissal of workers, including those who were not unionised, without compensation for their service.
He said that while he was not against unemployment benefits, they should be in addition to, and not instead of, redundancy payments.
Minister Dalley has not responded to the proposal.
The United States introduced unemployment insurance in 1935, as a response to the Great Depression when citizens were unable to buy goods and services as a result of lay-offs. The vicious circle of decline contributing to more job losses and therefore even less spending.
According to the U.S. Department of Labour's web site (www.dol.gov) the programme helps cushion the impact of economic depressions and provides economic stability, by ensuring temporary income support for laid-off workers. The programme provides benefits to workers who become unemployed through no fault of their own.
