Government to Commence Wage Negotiations Later This Year

The Government is expected to commence negotiations for public sector salaries for the 2017/19 contract period later this year.

This was announced by Finance and Public Service Minister, Hon. Audley Shaw, who said the administration aims to ensure that salaries remain “consistent and in line with our targets of wage to the gross domestic product (GDP).”

“The government remains committed to reducing the wage to GDP ratio to nine per cent. The current fiscal profile suggests a gradual lowering of this ratio from the projected 9.9 per cent in this fiscal year, to the targeted ratio by 2019/20,” he noted.

The Minister however said, that the impact of public sector transformation is expected to result in achievement of the target by an earlier period.

He was speaking at an International Monetary Fund (IMF) quarterly review media briefing at the Ministry’s offices in Kingston, on Friday, May 20.

Meanwhile, Mr. Shaw advised that a review of the central government’s salaries and allowances which is currently underway, will inform the administration’s medium-term wage policy.
“This policy is expected to be submitted to Cabinet by the end of December this calendar year,” he added.

Jamaica is on course for a 12th drawdown, of US$80 million, from the IMF after meeting all macroeconomic targets for the December 2015 and March 2016 quarters.

Head of the IMF’s Staff Mission Team to Jamaica, which conducted the review over the past two weeks, Dr. Uma Ramakrishnan, advised that disbursement of the funds is subject to the approval of the Executive Board, which is scheduled to meet in June.