Pearnel Charles Supports Redundancy Fund

Minister of Labour and Social Security, Hon Pearnel Charles, says that he strongly supports the establishment of a redundancy fund to which both workers and employers contribute, working to the benefit of both parties.
“We (at the ministry) do not subscribe to the notion that redundancy should be the first action towards addressing a cash flow problem or other economic problems”, he stated, adding that both employers and employees are afraid of redundancy, as it impacts negatively on both.
He was giving the main address at an ICT and Tourism Labour Forum organized by Jamaica Promotions Corporation (JAMPRO), held at the Secrets Hotel and Spa, in Montego Bay, on Friday September 24, 2010.
Mr. Charles said that it has been duly recognized in his ministry that the question of redundancy in a business should be put on the table for further discussions.
“We feel that redundancy payment is necessary, but we also feel that it should be contributory”, he stated.
“I personally believe that the worker should make a contribution to his future, like he does through the National Insurance Scheme (NIS), and the management should make a contribution to a pool of funds,” he argued. However, he insisted that the topic calls for further discussions.
He said that the ministry was sympathetic to the plight of the workers, as well as some management and owners of business who cannot find the money to pay redundancy.
“We feel it should be put on the table for discussion, and the Ministry of Labour, the Minister in particular, is thinking about a pool of funds contributory by both parties, that if one falls by the wayside there is some assistance to be had,” he stated.
“It is against this background that we are encouraging employers and workers to agree on this fund, and we hope to discuss it at the Ministry between the Unions and the Management, and I say let the dialogue start,” he concluded.
The Forum was organised by JAMPRO and is expected to provide feedback on obstacles affecting investors in western Jamaica, thereby informing government policy initiatives to enhance investor experience.
Representatives from several ICT and Tourism entities, which collectively employ over 15,000 persons, were in attendance.