Prime Minister Reiterates Call for Increased Labour Force Productivity

Prime Minister, the Most Hon. Andrew Holness, has renewed the call for increased productivity by Jamaica’s labour force to further boost and sustain the country’s economic growth.

He noted that a strongly performing economy will enable the Government to undertake critical projects and programmes that redound to the benefit of all Jamaicans.

Addressing Wednesday’s (March 6) unveiling of the Amber UTech Launchpad at the University of Technology (UTech) campus in Papine, St. Andrew, Prime Minister Holness said a massive shift in the country’s fiscal arrangement has been undertaken by the Government in favour of the labour force, particularly in the public sector, and, in this regard, urged Jamaicans to improve their productivity outputs.

“In 2021, Jamaica’s wage bill was $241.75 billion. In 2022, the wage bill increased to $338.13 billion, that’s a 39 per cent increase. In the 2023/24 fiscal year, the wage bill increased to $404 billion, that’s an increase of $66 billion… a 19 per cent increase over the previous year; and the projected wage bill for this fiscal year is $442 billion, an increase of $37.5 billion.

“So, between the 2021/22 fiscal year to now, that’s a $200-billion increase in the wage bill. So, cumulatively, the wage bill has increased… since the compensation review [commenced]… by 82.9 per cent,” he said.

Mr. Holness pointed out that no other Administration has awarded that level of salary increase to public-sector workers.

“The history of Jamaica’s wage increases is that the Government gives the wage increase and then takes it back with a wage freeze. In fact, almost every time there is a wage increase of any massive significant jump, a year or so after, there is a wage freeze because the wage increase also increases the fiscal pressures.

“This is the first time that we have been able to plan it properly so that we can even present the Budget without the pressures. But we must all, as Jamaicans, be careful how we exert pressure, because it will collapse our fiscal ecosystem, and governments have to be strong to manage this,” he maintained.

Mr. Holness said without being disrespectful and appearing to not understand what the workers are saying, “We have to be brave enough to raise the issue with our workers, to say, ‘listen, we want to do more, and we have demonstrated that we want to do more by virtue of what we have done. But to do more, we have to grow the economy’.”

“Our workers are such a critical part [of this], particularly our public-sector workers. You are essential. Growing the economy… can’t happen without you,” Mr. Holness said.

He maintained that while the Government remains committed to doing more, improvement in productivity will have a positive impact on the economy.

“I am not saying that this solves the problem of low wages, which we have traditionally suffered from. I am not saying that this is what the limit is that you should get. I am not saying that this solves the anomalies that exist. But the context of the conversation has to incorporate that a massive shift in the fiscal arrangement of the Budget has been done in favour of labour.

“I will be the first to tell you that more must be done, and the Government commits to doing more and will do more. But there is a parallel conversation that must happen. The only way to do more without collapsing the fiscal stability, is to increase productivity. In the conversation about more [compensation], please talk about increased productivity,” Mr. Holness said.

Meanwhile, the Prime Minister indicated that improvements must be undertaken in the development, implementation and delivery of policies.

“We have to develop our policy… and implement at greater speed and get results much faster than we are getting… that’s the truth, that’s the reality. I started the year with a mantra focusing on two things, one was peace and the other was productivity, and I kept repeating that Jamaica must focus now on peace and productivity. Those are two critical things,” he said.

Mr. Holness noted that one of the greatest challenges facing him and his Administration is how to get the public bureaucracy within government to increase its speed of delivery.

“The country is going through a series of simultaneous transformations in institutions. The public may not see the big picture, the arrangement of the architecture of transformation, because the results have not yet started to come. But I am here to tell you that the transformations are becoming entrenched. They are developing pace and results will come,” he said.

The Amber UTech Launchpad is a collaborative effort between the Amber Group and the University of Technology, Jamaica.

The initiative is designed to strengthen the growth and development of tech startups within Jamaica, with the objective of nurturing and advancing entrepreneurial ventures.

The Launchpad aims to facilitate the establishment and growth of 100 businesses within a span of 1,000 days.