Jamaica Gleaner
Published: Friday | May 15, 2009
Home : Commentary
EDITORIAL - Why is the PM spoiling his case?

THERE is that little anecdote about the salesman, who, having convinced the buyer, proceeds to talk himself out of the deal.

That, unfortunately, is the danger facing Prime Minister Bruce Golding and why, in the seeming absence of anyone on the job, we are offering him some unsolicited, free, but good communication advice: talk less and more carefully about the public-sector wage freeze imposed by his government.

There are relatively few who, rationally, would question that the Government is right about its inability to fulfil its agreement for a 7.5 per cent wage increase to its employees this fiscal year. Indeed, should the administration keep this promise, as well as make other expected adjustments, the central government's wage bill, at approximately $111 billion for the fiscal year just past, would be close to $140 billion for 2009/2010. That would lead to a widening of the fiscal deficit, now projected at 5.5 per cent of GDP, at a time when the global recession is battering an already anaemic Jamaican economy.

Public-sector cuts

But while this newspaper agrees with the Government's declaration of inability to pay, we believe, and have argued consistently that the administration chose the wrong solution to the problem; fundamentally, the Jamaican public sector is bulging and chronically inefficient and in need overhaul.

The central government, by careful pruning, could easily lose around 20,000 jobs without noticing the absences and with little or no impact in service delivery. Such an action would have the same effect of the wage freeze, but with the benefit of being able to pay the remaining employees better.

But this, admittedly, is a politically difficult route - one which Prime Minister Golding chose, at this time, not to travel. He opted for the wage freeze, a process used in the past to avoid the hard choices and to save jobs.

Understandable unease

Except that this time, the Government imposed the freeze ahead of completion of negotiations with the unions and without, it seems, specific agreement on whether employees would forgo the pay altogether or that it was now a deferred obligation of the Government. There is, in the circumstance, understandable unease and carping by unions.

The Government, however, occupied the high ground once it maintained a posture that was mature and shorn of arrogance. Public-sector workers, even as they appreciate the reality of their borrowed time, wanted to be coaxed and wooed.

Self-inflicted damage

Mr Golding, however, appeared to lose the plot with an ill-advised, high-spirited, chest-thumping speech at the rum company, Wray and Nephew, telling insistent police personnel that his administration "will not be bullied".

Two days later, Finance Minister Audley Shaw apologised to trade union leaders for imposing the wage freeze before concluding consultations with them. Both sides agreed to continue dialogue on various issues. The following day, though, Mr Golding chose to again incite passions with his declaration to journalists about people wanting "a pound of flesh" regardless.

If Mr Golding is following the script of communications professionals, he is clearly paying good money for bad advice. If it is his own strategy, it is self-inflicted damage. On this one, he probably would do better to listen to the trade union members of the Cabinet.

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.

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