By Leonardo Blair, Staff ReporterTHE JAMAICA Confederation of Trade Unions (JCTU) along with members of the public have come out in strong opposition to an application from the Jamaica Public Service Company (JPSCo.) for a rate increase.
Danny Roberts, JCTU vice-chairman, said the increase in JPSCo. rates currently being considered by the Office of Utilities Regulation (OUR) was sure to have serious implications for the Jamaican economy.
"Any increase in JPSCo. rates is bound to have an adverse effect on the relationship between the containment of wages and prices," said Mr. Roberts.
"Obviously there is a recognition that there are going to be inescapable increases and there will be some justification for that. We are not satisfied that this is the case with JPSCo. There is a difficulty in accepting that increase," said Mr. Roberts.
Currently the OUR is conducting islandwide consultations with consumers on the increase which, if granted, could be as much as 18 per cent and would be effective as of June 1 this year.
FEEDBACK FROM THE PUBLIC
David Geddes, communications manager at the OUR, said the feedback from the public has been negative. "The majority of customers who have turned out say that the JPSCo. should not get a rate increase now because it's going to trigger inflation. They have also expressed concerns on how it could impact the MoU," said Mr. Geddes.
The Memorandum of Understanding (MoU) referred to by Mr. Geddes, was signed last month by the Government and unions representing public sector workers. It places a restraint on wages for a two-year period ending March 2006. It is expected to give the Government room to get its finances in order as some $5 billion will be saved during the life of the agreement. It was forged against the background of the country's deepening economic crisis. The alternative to the MoU would have been the culling of some 15,000 public sector jobs in the face of the ballooning wage bill.
"We have to remember that the OUR and the JPSCo. are not parties to the MoU," Geddes stressed. "So therefore in our analysis of the application we have to analyse what are the costs facing JPSCo."
So far consultations have been held in Hanover, Westmoreland, St. James and Portland. The next meeting will be at the Jose Marti High School in Spanish Town, St. Catherine on April 1.
"The unions will be making our representation to the OUR, to make both the JPSCo. and the OUR aware of the disturbance this increase will cause between incomes on prices. This could have very serious national implications," said Mr. Roberts.
