Budget to spike in September

FINANCE MINISTER Audley Shaw is to table in September a supplementary budget in the House of Representatives seeking approval for the payment of outstanding salaries to public-sector workers.

Senator Arthur Williams, minister with responsibility for the public service, told The Gleaner yesterday that $10.4 billion would be included in this year's Budget to meet the payments.

"There will be a supplementary budget later in the year in order to finance the current year's wage payment," Williams said.

A total of $31.5 billion is owed to public-sector workers, with $10.4 billion to be paid this year.

Shaw, in April, tabled a $545-billion package which did not include the outstanding payments to the public-sector workers. At the time, the finance minister said under the International Monetary Fund (IMF) standby agreement, the medium-term programme called for a wage freeze up to the 2011-2012 fiscal year.

Public-sector workers were, however, adamant that the monies due to them be paid.

The Government, as a result, sought permission from the IMF for the payments, following which the public-sector workers signed a wage agreement.

The agreement will see Government implementing the outstanding seven per cent increase in September, with one month's retroactive pay for the current financial year being made at that time, and the remaining five months being paid in December.

The Government will also pay the outstanding two years of retroactive salaries over three years in five tranches, starting in 2012.

Meanwhile, Williams, who yesterday took the oath of office for his appointment to his new role as minister without portfolio for the public service, said he hopes to lead a successful process of public-sector transformation.

"It is an interesting job, and at this time in Jamaica's history a critically important one," Willams said, while pledging to "continue to give of my best and to do my work for the people of Jamaica with respect for everybody".