John Myers Jr., Staff Reporter
PROMPTED BY rising prices for goods and services, the trade union representing civil servants yesterday signalled its intention to seek double-digit increases when a wage restriction agreement with Government ends next March.
"With the missed projections in terms of the inflation targets there is additional lost ground ... and certainly, we will be reintroducing the implementation of our 80 per cent of market agreement," said Wayne Jones, president of the Jamaica Civil Service Association yesterday.
The process for bringing wages in the Civil Service up to 80 per cent of market value began in 2002, but was postponed with the signing of a memorandum of understanding (MoU) in 2004, restricting salary increases to no more than three per cent until March next year.
Mr. Jones, comments follow the latest disclosure by the Bank of Jamaica that inflation rates could reach a high of between 13-15 per cent for the fiscal year ending next March.
Other trade unions representing workers in the private sector say they will push for double digit wage increases to temper the effect of the rising inflation.
Lambert Brown, first vice-president of the University and Allied Workers Union (UAWU) lamented that "our standard of living has been eroded significantly, and whenever we are involved in salary negotiations we will be pushing very hard for sufficient adjustments in salary to meet the needs of the workers." The UAWU represents employees within and without the public sector.
SOME CAN AFFORD IT
Insisting there were employers who could afford to give double-digit increases, Mr Brown said, "You just look at the profit reports (submitted) to the (Jamaica) Stock Exchange." He cited the Jamaica Public Service Company which recently reported a $500 million profit.
Jacqueline Coke-Lloyd, executive director of JEF said employers could not afford to grant double-digit increases because they, too, were affected by high inflation and rises in operational costs due to spiralling oil prices. She warned "it could mean downsizing" if employers are forced to meet these demands.
She said the current inflation projections could force employers to introduce performance-based pay on a broader scale in an effort to manage costs and remain in business.
"We must not see profit as a dirty word, profit is important ... I think sometimes we don't look at what it costs to run your business and sustain it," stated Mrs Lloyd.
The monitoring committee for the MoU is expected to meet with the Minister of Finance today to discuss the implication of recent and impending price increases in electricity and bus fares as well as new inflation projections.
