A two-day strike by more than 2,000 National Water Commission (NWC) workers, which followed in widescale water lock-offs across the island last month, has resulted in over $240 million in revenue losses.

The strike was brought to an end after government and the workers met and signed an agreement for a compensation review to be done and implemented within six months.

The disgruntled workers were protesting what they said was an outstanding reclassification exercise and their inclusion in an ongoing compensation review. This sparked a wave of other industrial actions which saw several other public sector employees and their unions, along with air traffic control workers and some staff of the National Housing Trust, mounting protests about similar concerns as well as work and equipment-related conditions.

Providing update from an impact assessment survey done, Dr Wayne Henry, director general of the Planning Institute of Jamaica (PIOJ), said that preliminary estimates show a range of fallouts for revenues, production and consumption as a result of the strikes carried out between May 10-11.

“Revenues were down by $240 million, water production down 1,297.4 megalitres and water consumption down 454.3 megalitres. The downturn in water consumption during the period of industrial action was equivalent to 2.1 per cent of total water consumption during the April-June 2021 quarter,” he said during a quarterly press briefing held on Wednesday where he also provided update on gross domestic product (GDP) performance for the last quarter of the 2021/22 fiscal year.

Henry noted that the extensive survey ordered done by Prime Minister Andrew Holness was not yet completed as impact estimates resulting from losses in other areas affected by the spate of industrial actions were still being calculated. “We are still awaiting data on the impact from the air transport and tourism activities to complete the assessment on overall GDP. A more comprehensive update will therefore be provided at a later date.”

Projecting the continuation of positive growth for the economy, which expanded by six per cent during the January-March 2022 quarter after it registered its fourth-consecutive quarter of growth since the pandemic, Henry cautioned against future labour unrest which he said could negate some on the positive trends realised during the recovery period.

“I encourage both the Government and private sector employers, as well as the unions representing workers in both the public and private sectors, to approach labour disputes in a manner that will be rewarding to both workers and employers, and not cause harm to the development process,” he advised.

The PIOJ, in maintaining a positive long-term outlook for the economy, said it expects growth within the range of 2-4 per cent for the current (April-June) quarter and two-five per cent for FY2022/23. Its previous forecast of three-six per cent was slightly downgraded as a result of the high levels of uncertainty that continues to surround global developments including the Russia/Ukraine war which has further compounded supply chain issues and other economic challenges even as countries try to attain full recovery from the onslaught of the novel coronavirus pandemic.

During FY2021/22, the economy is projected to have grown 8.1 per cent which the PIOJ’s preliminary data said was supported by improved performances in all industries except for mining and quarrying which contracted by 39.8 per cent due mainly to the closure of the JAMALCO alumina plant following a fire at the refinery last year which has been impacting production.

“The growth recorded for fiscal year 2021/22 is in line with previous projections, and supports the expectation for a return to pre-pandemic output levels by FY2023/24. With respect to the labour market, it is expected that pre-pandemic employment levels will be regained in the current fiscal year, 2022/23,” the director general said, reiterating the record low 6.2 per cent unemployment rate reported by the Statistical Institute of Jamaica (Statin) for January.