Jobs to go

• Government of Jamaica puts 10,000 Public-Sector posts on cutting board

Edmond Campbell, Senior Staff Reporter

DESPITE A stern warning against job cuts from trade unions representing public-sector workers, Prime Minister Bruce Golding has announced that at least 10,000 posts will be axed from the public sector over the next five years.

The massive restructuring exercise is estimated to realise savings of between $40 billion and $50 billion to the coffers of Government.

Golding, in his presentation to the 2011-2012 Budget Debate, said the savings would accrue primarily from staff reductions and the disposal of assets arising from the privatisation and outsourcing of certain functions.

He said greater benefit would flow from improved efficiency and productivity.

"We have made it clear that the primary objective of this exercise was to improve the efficiency of Government, not to cut staff, and that the impact of staffing would ultimately be determined by the final decisions on how ministries, departments and agencies were to be restructured."

The prime minister said a census was done to determine the number of persons working with Government, among other things. The census found that 118,163 persons are employed in the public service.

Golding told his parliamentary colleagues that at the end of the rationalisation programme, it is projected that the staff complement would be reduced to between 108,000 and 109,000.

He said some of the staff reductions would result from natural attrition.

The census also revealed that 5,137 persons above the age of 60 were now due for retirement.

At the same time, the census identified 12,800 persons between the ages of 50 and 55 who can retire without losing their pension benefits.

Golding pointed out that retirement would not fully account for the targeted reduction in staffing.

"Where persons retire from positions that can be eliminated in that rationalisation exercise, those positions will not be filled. However, some of those who will retire will have to be replaced, especially in vital areas such as education, health services and security," he added.

The prime minister said a number of employees would be reassigned to other ministries and departments which might be below their required staff levels.

Golding advised that the administration would hold consultation with the trade unions as it implements the rationalisation programme.

He said functions that were carried out by some ministries, departments and agencies would be outsourced or privatised.

"We will be making every effort to assist displaced workers to seize the opportunity, where possible, to provide those services."

Under the rationalisation plan, 21 entities are to be merged, 13 privatised, and the services of 10 others will be outsourced. Another seven entities, including the Local Government Department, are to be abolished.

At least one union representing public-sector workers had warned the prime minister to abandon plans for retrenchment in the public sector.

On Monday, Vincent Morrison, president of the National Workers Union, said: "The public sector has to hold or it would be chaos going forward. Don't touch the public sector!"

Reasons for public-sector rationalisation

• Overlapping and duplication of functions
• Organisations and structures that are no longer relevant
• Shifts in mandate and core functions
• Archaic systems and structures
• Outdated statutes
• High wage bill relative to GDP
• Limited financial and material resources
• Lack of appropriate technology