According to the latest strategy paper, a wage bill of 9% of GDP is required by law for the 2018-2019 financial year. In accordance with the agreement, the 7% salary increase due from 2009 on the normal pay day will take effect in September 2011, including one month of retroactive payment for the five-month period from April to August 2011. Although it is expected that the revision of the salary structure, given the scale and scope of the reforms, will not apply to the current round of wage negotiations, related technical work should soon begin in order to be completed in time to inform the next round of wage negotiations in the public sector, he said. Allowances paid to public sector employees in the central government account for about a third of the wage bill, or more than $US 55 billion, according to a review under Jamaica`s agreement under the existing precautionary preparation agreement with the International Monetary Fund (IMF). „The place we are in today is a testament to the understanding of both sides, because the wage shutdown was introduced at a time when the government had no choice and Jamaican workers, public sector workers, understood what was going to the country and were making their sacrifices,“ he said. Asked if the IMF has a target where it wants to reduce the number of allocations and the percentage of the wage bill relative to those allocations, Lonkeng said the IMF-backed program has no such targets. „Rethinking the compensation system should be part of the broader review of the government employee compensation framework in a consultation process prior to the next round of wage negotiations,“ he said. „They exacerbate wage rigidity and have tended in the past to complicate wage negotiations in the public sector, with some of them negotiated separately through a decentralized negotiation process,“ the IMF representative said. Public sector employees whose unions have signed the 16% wage increase agreement for the 2017-2021 period will receive until 31 March a windfall of almost one year of retroactivity or additional payment. Senator Williams indicated that Finance Minister Hon.
Audley Shaw had informed union leaders that the government was in a position to end the wage shutdown introduced in 2009. Wage rigidity refers to the general difficulties faced by employers in trying to reduce wages. Companies often find it difficult to reduce their employees` wages due to collective agreements, concerns about lost productivity, or other reasons. and they sometimes choose to lay off workers instead of adjusting wages when faced with losses or lower profits. „This should be done with the aim of increasing the productivity and efficiency of the public sector, including reducing roles and responsibilities, as well as the size of the public sector and reducing labour costs, in order to free up resources for urgent growth support spending.“ According to Clifton Grant, vice president of the UAWU, the union has temporarily withdrawn from the JCTU. He said the action was taken to protest the failure of the other seven unions to inform Senator Brown of their signing of the deal last week on Tuesday. Brown is also the opposition critic for public sector wage issues. President of the Special Association of the Armed Forces of Iceland (ISCFA), Special Inspector, St. . .