Last week in the Senate, Don Wehby, minister without portfolio in the finance ministry, dropped the administration's charade that things were all right and gave a measured analysis of the macroeconomic and fiscal challenges faced by Jamaica in the face of the global credit crisis.

Pearnel Charles, the labour minister, has since been more direct. He has warned that the signs are that the international recession will also sweep through Jamaica, with the cost of "hundreds, if not thousands" of jobs. The minister based his analysis, he indicated, on first-hand discussions he has had with firms.

Trade unions

So, Mr Charles has called for a meeting with trade unions this week in a search "for preventative measures" and ways to "manage the inevitable".

On the face of it, Mr Charles's initiative makes sense, except, we are not clear about what it is he wants to prevent or who he expects to bear the burden of his intent, whatever that is.

We assume, though, that the minister's ideal would limit, in so far as possible, redundancies by companies, and where job losses are necessary, ensure that firms meet all legal obligations to employees.

Fundamental discussion

This newspaper, however, believes that this gathering economic crisis demands a far more fundamental discussion than is contemplated by Mr Charles and his Cabinet colleagues. The conversation has to shift to how firms have to conduct business in Jamaica and the burden they are forced to bear. Also, the Government has to come terms with whether it genuinely believes in the concept of the private sector as the main engine of the economy and the prime driver of growth and jobs.

Should the administration's answer be yes, then it has to underpin its position with more than mere declarations, but concrete policy actions.

In periods of economic downturns, it is important for firms to tighten their operations and remove costs, which sometimes include making staff redundant. Yet, with firms needing to reorganise, they are required to cover heavy redundancy costs. It is a substantial part of the reasons that even in difficult times Jamaican firms, especially the small to medium-size ones, don't reorganise. They can't afford it. They tend to limp along to an insipid demise that brings no value to their employees or the economy.

It seems clear that a review of the redundancy law is urgent, to remove this impediment on firms, which might be replaced by a state-ope-rated redundancy insurance programme.

Flexible work week

Such a move must be only part of broader labour-market reforms, which must include the long-stalled flexible work week initiative and the easing of strictures on firms that too often limit their ability to manage their workforce in the best interest of the organisations and the employees themselves.

Moreover, Mr Charles has to see his ministry - and steer its transformation to such - as substantially more than a dispute-resolution agency, but a key economic policy institution, with links to other key ministries, such as finance and education.

If Minister Charles grasps this opportunity he could be a critical architect in Jamaica's economic development.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.