Dionne Rose, Staff Reporter
Minister of Finance Omar Davies (left) in discussion with Dwight Nelson (sitting), Lambert Brown (centre) and Tony Morrison (right) at the MoU meeting with the Jamaica Confederation of Trade Unions at the Ministry of Finance, Heroes Circle, Kingston. - JUNIOR DOWIE/STAFF PHOTOGRAPHER
THE PUBLIC sector Memorandum of Understanding (MoU) has been viewed by the trade unions as a bittersweet agreement but from the Government's perspective, it was a landmark agreement.
President of the Jamaica Confederation of Trade Unions (JCTU) Senator Dwight Nelson said that while there were some positives in signing the MoU, in retrospect, there were regrets about some of the agreements.
"One of the things was that we never realised that the commitments that were given would not be honoured," he said.
The commitments were that the Government would manage its economic policies by ensuring that the inflation rate remained within the targeted band of eight per cent - nine per cent in 2004/05 and six - seven per cent in 2005/06.
The Government was also expected to maintain real gross domestic product (GDP) at two per cent - three per cent in 2004/05/06.
But year-to-date inflation up to November 2005 was 12.8 per cent.
"Single-digit inflation was unrealistic. The Government's fiscal targets, in retrospect, were not conducive. These are commitments that we will never make again," said Senator Nelson.
But State Minister in the Ministry of Finance and Planning, Fitz Jackson, argued that there were external factors such as the hurricanes that impacted on the island as well as the dramatic increases in world oil prices, which threw out the fiscal targets.
"The Government has kept its end of the bargain in the MoU. From the onset, the Government and the trade unions agreed that there were some parameters outside of its control, which it could not be held responsible for," he said.
Mr. Jackson said that such criticisms were "unfavourable and unreasonable".
Senator Nelson said that the unions also regretted not launching a public education campaign to inform the workers of what would have been expected of them when the MoU was signed.
Danny Roberts, vice-president of the JCTU, said that the public sector workers did not fully capitalise on the opportunities, such as training, that the MoU presented.
"I think that there was too much of an emphasis on the wage components without recognising the significance of the other components and the benefits that could have been derived from it," he said.
Both parties agreed that one of the positives of the MoU was that it effected a significant improvement in the industrial relations climate in the public service, which according to Minister Jackson, had never been seen before.
Fitz Jackson said that the MoU also brought about a more efficient sector as Government entities had to provide more cost effective and efficient service delivery.
But Senator Nelson said that there is more to be done in this area.
"We are still not satisfied with the Government's procurement machinery; we think there is too much corruption and wastage," he said.
As a result of the MoU, the Government has saved more than $400 million on wages and salaries between April and September.
It had projected to pay out $21 billion for the civil service payroll but instead, disbursed $20.5 billion dollars to cover expenses.
