EDITORIAL - Seeking industrial peace

What it will take to achieve industrial peace among public-sector workers is the question on many minds this weekend as unions seem set to harden their positions for the Government to promptly settle their wage dispute.

From all indications, unions representing public-sector workers, including teachers, nurses and police, are resolved to rebuff the latest proposals put forward by the Government and seem not willing to tolerate any further wage freeze.

The reality is that the agreement with the International Monetary Fund, as set out in the Memorandum of Economic and Financial Policies, demands that the Government of Jamaica maintain the current public-sector wage freeze on salary increases into 2012. The wage-freeze prescription has been applied by several countries trying to deal with the current grim fiscal realities. They argue that without a wage freeze, they would not be able to pay salaries and provide public workers the benefits they are entitled to without cutting staff. In some cases, it was either eliminating jobs or renegotiating contracts.

We understand completely the pressures faced by workers to meet their obligations and we cannot fault unions for trying to get the best deal to compensate workers for the job they do. However, the unions cannot turn their backs on the dire financial circumstances choking the country and its taxpayers at this time. As taxpayers groan under the burden of high taxes, public-sector groups risk boxing themselves into a fiscal corner.

In bad economic times, a cash-strapped company will always examine its pay bill, since this is usually among the greatest budgetary demand. The Government's pay bill for gross wages and salaries of public-sector workers is above 40 per cent.

Recession forces adjustments

Indeed, many people in the private sector whose taxes go towards supporting the public-sector wage bill have had to adjust their expectations as industry after industry tries to cope with the pressure applied by the global recession.

Many private-sector workers do not enjoy the economic security and benefits that public-sector workers take for granted. For them, wage restraint and wage cuts have been the order of the day.

Nurses' Association of Jamaica President Anthonette Patterson has described the mood of her members as one of disgruntlement. However, we found her tone quite conciliatory, as she explained that the members are searching for a light at the end of the tunnel and are, therefore, open to further discussions.

Meantime, State Minister Arthur Williams has accused the unions of refusing to budge, even though the Government has made some movements in its offer to limit the wage freeze to two years instead of three.

The negotiations are taking place at a time when talk of layoffs is swirling around the public sector. One is forced to ask, could the current wage freeze save some jobs and ensure that essential services such as health care continue to be available to those who need it most?

We are accustomed to deep acrimony and grave discontent during periods of public-sector negotiations. However, things may play out differently if the union leadership avoids the heated rhetoric which we have come to witness throughout the years.

The Government needs to demonstrate that it is making wise spending decisions so that we can all truly believe we are all in this together. Adjusting its tack on unilateralism might also tamp down the tension.

We would also urge the economic and industrial relations experts to start a national conversation about employment and labour practices - one that is informed by solid research and that would lead to a better understanding of what it takes to put more people back to work and make Jamaica a competitive marketplace once again.

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