Economist Urges Finance Minister to Address Public Sector Wage Bill

Economist, Dr. Adrian Stokes is urging Finance Minister Fayval Williams to address the public sector wage bill when she makes her maiden budget presentation on Tuesday.

He was speaking on Nationwide at Five on Monday.

Chevon Campbell reports.

The government currently spends 13 per cent of the country’s gross domestic product, GDP, on wages and salaries for the public sector. This translates to nearly 50 per cent of tax revenues annually.

This could further increase at the conclusion of wage negotiations, which are set to begin between the government and the public sector unions this year.

Economist Dr. Adrian Stokes says public sector wages and their impact on revenues are unsustainable.

Finance Minister Fayval Williams has already signalled that there’s no intention on the part of the government to cap wages at this time.

However, Dr. Stokes says this could place the country’s fiscal and economic stability at risk without proper public sector transformation.

Meanwhile, president of the Jamaica Confederation of Trade Unions, St. Patrice Ennis, is calling on the government to introduce performance based pay incentives in the public sector.

The veteran trade unionist says performance based incentives will achieve the dual objective of encouraging productivity among workers, while weeding out non performers.

St. Patrice Ennis, president of the Jamaica Confederation of Trade Unions. He was also speaking on Nationwide at Five on Monday.