'No bitter medicine' - Unions signal tough position

— Despite Government's financial bind

BY CONRAD HAMILTON Senior staff reporter hamiltonc@jamaicaobserver.com

Sunday, January 29, 2012

PUBLIC sector trade unions seem to have no intention of pulling their punches in upcoming wage talks despite admissions by the Government that it's coffers are light, with at least one union leader talking tough about workers' expectations of the new Administration.

In fact, despite declarations by Horace Dalley — the new minister without portfolio in the Ministry of Finance — that he intends to take a conciliatory approach, there are indications that the battered public sector workers may be ready to don their battle gear once again in anticipation of potentially tumultuous negotiations.

Keith Comrie, who heads the public sector committee of the Jamaica Confederation of Trade Unions (JCTU), acknowledged that the unions are all aware of the Government's financial plight, but countered that public sector workers are also struggling and need an improvement in their salaries.

"We not going to take any bitter medicine for the cure; we are looking for the best medicine," said Comrie in an interview with the Sunday Observer.

He was referring to a comment made on the campaign trail by former Prime Minister Andrew Holness, who earned the ire of some members of the public when he compared public sector pension and tax reforms to swallowing "bitter medicine", an unpleasant but necessary cure for what ails Jamaica financially.

"We ready, when him (Dalley) ready, but there are some things that the confederation will be putting on the table at the same time — pension reform and tax reform — because when we go through with the tax reform, the workers are going to feel it, and that is why we have to go through with the claim," said Comrie.

"The economy also affects the worker, you know. What happens when a worker not getting living wage? When Government takes PAYE (Pay As You Earn) from a worker and impose a 17.5 per cent GCT, the worker must suffer. It don't make sense for the Government to try to balance their budget when the workers struggling to survive," Comrie argued, even as he signalled his commitment to participating in the collective bargaining process.

Comrie also indicated that the workers represented by the JCTU are demanding that the minimum annual adjustment to their salaries should be in line with the inflation rate, which hovers around six per cent.

The trade union leaders and Dalley are expected to come face-to-face at this week's meeting of the Memorandum of Understanding (MOU) monitoring committee. Several unions have already submitted claims for the 2010-2012 contract period and one has disclosed that a wage and fringe benefits claim has also been submitted for the 2012-2014 period.

The development comes amidst heightened concerns over the public sector wage bill, reports of reduced inflows into the Government's coffers and the spectre of civil service job cuts hovering.

The submission of the wage claims has also led the Portia Simpson Miller Government to acknowledge that a new round of MOUs with trade unions representing public sector workers might have to be placed on the negotiating table.

Wage-related MOUs became a feature of the relationship between the Government and public sector unions in 2004 when then-Finance Minister Dr Omar Davies managed to ink a landmark pact under which public sector workers agreed to a two-year wage freeze in order to avert the loss of thousands of jobs.

Speaking with the Sunday Observer last week, Dalley, who will be leading the negotiations on behalf of the Government, acknowledged that a new round of MOUs could be in the cards.

However, in his very guarded response, Dalley declared that any decision to enter into such an agreement would have to be based on discussions with the unions representing Government-paid employees.

"We first have to conclude the 2010-2012 (wage) negotiations, and when we come out of that we will decide where we go from there. I have my views and the workers have their views, but we will sit at the table to resolve whatever difficulties there are," said Dalley.

"I am optimistic that the partners know the situation, they know the state of the economy and I know they are willing and flexible. There are some issues that I came and saw on the table; we are going to try our best to resolve them," added Dalley, who declined to divulge the issues.

Two trade union officials concurred that these 'issues' include the imminent wage and fringe benefits negotiations, as well as the controversial public sector pension reform.

According to one of the trade union officials, the workers are aware of the economic challenges faced by the Government, and while they may be willing to defer a wage increase, they are not prepared to allow the Government to proceed without new agreements governing fringe benefits and conditions of service.

The union official, who requested anonymity, said his group of workers would go along with a new round of MOUs, once the terms are favourable.

However, Anthonette Patterson, the president of the Nurses Association of Jamaica (NAJ), says her organisation has given no consideration to another MOU.

She added that a wage and fringe benefits claim for the 2010-2012 contract period has been submitted on behalf of nurses.

In addition, Patterson disclosed that the NAJ has informed the Government of its readiness to begin the negotiations.

The Jamaica Teachers' Association (JTA) has also submitted its claims for 2010-2012 and for 2012-2014. Dr Adolph Cameron, the organisation's secretary general, says the union is prepared for the commencement of the negotiations.

He emphasised that the JTA's leadership must proceed with the claim as its membership has given no instruction for the association to withdraw the request, even with the monetary challenges being faced by the Government.

But Dalley, who served as labour minister in the previous People's National Party (PNP) administration, remains confident that his experience at the bargaining table and his commitment to dialogue should result in fruitful discussions with the trade union leadership.

"I am the political head of the civil service, and if you have workers who you have responsibility for, you would want the best relationship with them," he said.

"I have never been an adversarial minister over the years; it's my style to sit down and talk," said Dalley, who noted that Finance Minister Dr Peter Phillips, as well as Prime Minister Simpson Miller have already impressed on the new Government ministers the importance of respectful dialogue with public sector workers.

"I will guide my team on style, because I am not confrontational. Although we might have opinions and differences in ideas and in thoughts, in the long run, we want to see the best for the workers. We want to see productivity increase in the public service. We want to see waste decreased in the public service, which has some of the best workers anywhere in Jamaica; qualified, experienced workers, second to none," he added.

The new minister also stated his intention to conclude discussions with the unions on the controversial public sector pension reform and reiterated that all decisions will be based on thorough consultations with them.

Approximately two weeks ago, senior players in the country's trade union movement said they were gearing up for what could be intense discussions on the proposed reform of the pension scheme for public sector workers.

The item was among the hot-button issues of the recent general election campaign, and was said to be among the considerations of public sector workers as they cast their ballots in the December 29, 2011 poll.

For several months the Jamaica Labour Party Administration had indicated that the reforms were critical, as too much money was being taken from the State's purse to pay retired public servants.

That pronouncement also followed news of the JLP Administration's commitment to the International Monetary Fund (IMF) to push the reforms.

However, the trade union movement took issue with the proposed move and accused the then Government of entering into an agreement with the IMF without informing workers.

The People's National Party (PNP), which at the time formed the parliamentary Opposition, was also critical of the Government's approach and later indicated that while public sector pension reform was inevitable, any approach to effect the desired changes should involve dialogue with unions.

Comrie repeated the unions' dissatisfaction with the suggested reforms as contained in a green paper tabled in Parliament.

"Our actuaries have shown us where the worker would lose if we follow the green paper. The workers would lose between 20-40 per cent of their current pension," said Comrie, even as he noted that the unions were not opposed to a contributory pension scheme, but were rejecting the implementation of such a scheme without the necessary dialogue.

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COMMENTS (13)

PL BOGLE
1/30/2012

Copy and paste from the internet to prove your point doesn't change the fact that austerity measures never, won't and will never work. “A draft of the European Union summit meeting communiqué calls for ‘‘growth-friendly consolidation and job-friendly growth,’’ an indication that European leaders have come to realize that austerity measures, like those being put in countries like Greece and Italy, risk stoking a recession and plunging fragile economies into a downward spiral.”

PL BOGLE
1/29/2012

A draft of the European Union summit meeting communiqué calls for ‘‘growth-friendly consolidation and job-friendly growth,’’ an indication that European leaders have come to realize that austerity measures, like those being put in countries like Greece and Italy, risk stoking a recession and plunging fragile economies into a downward spiral.

PL BOGLE
1/29/2012

Copy and paste from the internet to prove your point, doesn't change the fact that austerity measures never, won't and will never work.

Nejeeper KNG
1/29/2012

Spain has announced more than $11 billion worth of austerity measures to try and curb the country's borrowing. The new Prime Minister Mr. Rajoy has outlined $11.3 billion worth of spending cuts that include the extension of a freeze on public wages, as well as tax hikes for the wealthiest Spaniards. The government also angered unions by freezing new hiring. It is mind-boggling when a country whose dept is 131% of GDP thinks twice about the necessary measures to be taken.

Nejeeper KNG
1/29/2012

Italy's new government has adopted a package of emergency austerity measures aimed at fending off bankruptcy and saving the euro from collapsing. Some of us are “penny wise and pound foolish” but as long as it is the cheerleaders who are being foolish it is OK however Jamaica can’t afford to have a government who is “penny wise and pound foolish.”

Nejeeper KNG
1/29/2012

Greek PM Lucas Papademos said there was "total convergence" among political allies on new austerity measures needed for a second bailout and debt cuts to avert default. "This will allow us to negotiate in the best conditions" Papademos said after talks with his Socialist predecessor George Papandreou, Antonis Samaras, head of the centre-right ND party, and far-right leader George Karatzaferis. He said negotiations with creditors "are not easy, the partners want additional engagements/conditions.

PL BOGLE
1/29/2012

Austerity is an experiment that has been tried many times before with the same results, austerity measures won’t work, and prevent countries from creating jobs needed to generate economic growth. All those who are advocating for austerity measures, are not well informed.

J J
1/29/2012

Mr Dalley the self style Gangsta for life saying he has never been an adversarial minister made me DWL not the Horace Dalley I know well I guess he has now converted, lets hope this conversation last. NOw the PNP manifesto stated that they will engage the Public Sector in an MOU aimed at reducing their wages, so if these PublicSector Unions read the Manifesto then they should know what to expect. Out of thr frying pan into the fire

Nejeeper KNG
1/29/2012

The whole public sector should be audited; these people think they are entitled in such a way that making sacrifices for the country is political. They vote the previous Admin out of office because they are not comfortable with the notion of the “bitter medicine” now the unions who are protecting their interest instead of the county. The medicine will have to be taken whether they like it or not. The future loans (IMF, IDB) that we depend on will require that the govt take austerity measures.

Tajai Grant
1/29/2012

@diehardr sickheads - I concur, they are all PNP apologist.

diehardr sickheads
1/29/2012

Oh pleeeeeeese the unions are just hypocrites and shadow boxing Most of them quetlly campagn for the pnp. let them keep fooling people when the pnp start talking they will just sell out the workers with mou and a four years wage freeze Jta,nwu,uawu,police fed, jago. before election gov must find mony now is country has no mony .the difference if the jlp was at the table no matter wat unions would want to lock down the country.even if the jlp could get burchel whiteman as their nigotiater.

Justin Wright
1/29/2012

This is one tough area of govt. business, but its important that the minister remains civil, open, and firm at the same time, because unions are just another business, they need to get paid also and they do so at the expense of the workers they represents. What the minister can do is to address the workers first, then their representatives as make sure there is mixed messages. Never ever make the mistake of financial promise, deal with openly with the reality, and prepare with good alternatives.

john mack
1/29/2012

You unions are living in absolute Denial, You want to drag the country down in economic ruins. There are too many government workers for such a small country that doesnt produce enough. Do you propose we raise taxes and duties across the board to pay your incompetience. How about we get high interest loans so we can allow you and your ineffective workers to sit on their chairs all day solitaire.

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'No bitter medicine' - Unions signal tough position