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  • Public sector workers and unions must appreciate their role in the country's delicate fiscal situation, as wage demands that push inflation, worsen debt, or compromise the Government's ability to improve the economy, will erode economic and social credibility.
  • This caution was issued by Director General of the Planning Institute of Jamaica (PIOJ), Dr. Gladstone Hutchinson yesterday (Aug. 19) at the Management Institute for National Development's (MIND) 17th annual public lecture, held at the institution's Old Hope Road campus. Dr. Hutchinson was guest lecturer on the topic: 'Vision 2030 National Development: Plan Pipe Dream or Viable Vision'.
  • Making reference to the recent judgment handed down for members of the Island Special Constabulary Force (ISCF) to receive a seven per cent wage increase, the PIOJ Head opined that "it involves a process by which every individual plays an important role in making a sacrifice.I make no judgment about their deservedness or the morality of the situation, I make only an economic argument here."

Public sector workers and unions must appreciate their role in the country’s delicate fiscal situation, as wage demands that push inflation, worsen debt, or compromise the Government’s ability to improve the economy, will erode economic and social credibility.

This caution was issued by Director General of the Planning Institute of Jamaica (PIOJ), Dr. Gladstone Hutchinson yesterday (Aug. 19) at the Management Institute for National Development’s (MIND) 17th annual public lecture, held at the institution’s Old Hope Road campus. Dr. Hutchinson was guest lecturer on the topic: ‘Vision 2030 National Development: Plan Pipe Dream or Viable Vision’.

Making reference to the recent judgment handed down for members of the Island Special Constabulary Force (ISCF) to receive a seven per cent wage increase, the PIOJ Head opined that “it involves a process by which every individual plays an important role in making a sacrifice.I make no judgment about their deservedness or the morality of the situation, I make only an economic argument here.”

He argued that when the government’s ability to improve the social, economic and business environment is compromised, this raises the risk premium and cost of capital.

“In the end, it quickly erodes even the gains that the workers had fought for.the key issue is that the value of workers’ gains that are achieved through non-productivity based demands will likely be eroded quickly if the nation’s fiscal profile worsens,” he pointed out.

Dr. Hutchinson further stated that businesses and the private sector must also take advantage of the opportunities that are emerging for new investments and entrepreneurism.

“The days of just sitting back and getting high returns from Government paper is over and they must start looking to opportunities in the real sector,” he remarked.

He said that the Government can them concentrate its efforts on creating an enabling and facilitatory environment for the private sector to engage in business entrepreneurship, broad-based investments, and job creation.

The lecture was held in honour of outstanding MIND Manager, leader, facilitator and author, John Tracey, who has served the public sector for more than 36 years.

He held key leadership positions at the Institute, including principal trainer/consultant, dean of studies, and programme manager, and is now consultant to MIND’s public sector capability development department.

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