Arthur Hall, Senior Staff Reporter

Golding

Thousands of public-sector workers could be added to the unemployment line if the trade unions which represent them say no to the Government's wage freeze.

The dire warning was issued yesterday by Prime Minister Bruce Golding as he reacted to reports that some groups of civil servants were poised to reject his plan.

That warning has apparently not fazed trade union leaders, who are to meet today to craft a response to what they say has been a unilateral decision by the Golding administration.

"The prime minister needs to be careful that, if this is how he treats a signed agreement, what is the signal that he is sending to the international community," Danny Roberts, vice-president of the Jamaica Confederation of Trade Unions, told The Gleaner minutes after Golding's announcement.

Roberts and his colleagues are slated to meet today but the message from Golding to the union is that there is no money.

The Government has budgeted $115 billion to pay civil servants this year, up from $111 billion last year. But this could climb to $149 billion if all the already-agreed wage increases are paid.

According to Golding, spending $1.5 billion more would force 1,000 redundancies.

Increase warrants $34b

Civil servant increases, which might not happen, warrant $34 billion.

"It would take our deficit to a level that would cause Jamaica's credit rating to be downgraded to the lowest we have ever seen. It would cause interest rates to go up and put pressure on the foreign exchange rate. It is just not possible," Golding said.

He urged public sector workers to understand the crisis facing the country as the Government did not want to send anyone home.

According to Golding, unemployed civil servants would struggle to meet their basic needs at a time that they would be least able to respond.

Golding further argued that the public sector was not overstaffed, but admitted that there could be a more efficient use of employees.

The prime minister said while the decision to freeze wages should have not surprised trade unions, he made the announcement while they were still in negotiation with the finance ministry because the Government had no room to manoeuvre.

arthur.hall@gleanerjm.com