The inequity of the Jamaican government’s new public sector compensation package


Professor Canute Thompson

The secret is out, the end has been reached and made known for all to see. What we are witnessing is the massive salary increases which the Government of Jamaica has given to the members of the executive and members of parliament.  The increases show a massive jump, effective April 1, 2022, and then increments of an average of 10% over the next two years.  For example, in the case of the Prime Minister, his salary will increase by about 143% effective April 1, 2022, moving from about $9M per annum to about $22M per annum and then to roughly $25M in April 2023, and approximately $28m in April 2024.

In an ideal situation, paying a Prime Minister the equivalent of about USD $160,000 per annum is not excessive, but two factors must, in my view, be considered when assessing the current situation. These are:

  • The context of compensation, earnings of the country, and comparative increases to public sector workers during the same period, and
  • The duty of the government to lead and serve by example.
Prime Minister of Jamaica, Andrew Holness

Context

While some public sector workers have seen reasonable, and in other cases substantial increases in their compensation, none have seen the level of increases, in percentage terms, that members of the executive and legislature have seen.  Taken in its bald frame, the actual jump the Prime Minister will see in his June 2023 salary, assuming the new rates are implemented then, is a 177% increase over the current salary, with the entire year 2022 being retroactive payments which will amount to about $13M before taxes.  If the figure for 2024 is considered, the increase amounts to 211%!!

Taken in its bald frame, the actual jump the Prime Minister will see in his June 2023 salary, assuming the new rates are implemented then, is a 177% increase over the current salary, with the entire year 2022 being retroactive payments which will amount to about $13M before taxes.  If the figure for 2024 is considered, the increase amounts to 211%!!

The economy has just returned to near pre-covid levels of Gross Domestic Product (GDP) output, but in the last two years prior to covid-19 was seeing a decline in growth and earnings. In the Fiscal Year 2018/19, the economy grew by 1.6%, and in 2019/20 by negative 2.1%. The “growth” for each fiscal quarter showed:

April to June 2019:                          0.3%

July to September 2019:               -0.2%

October to December 2019:        -0.5%

January to March 2020:              -1.7%

Jamaica’s total output in goods and services (GDP) over the last seven years is shown in the table below.

                                                                Table 1

                                              Jamaica’s GDP 2016 – 2022

YEARGDP USD (Billion)% CHANGE OVER PREVIOUS YEAR
2016$14.08
2017$14.815.1%
2018$15.736.2%
2019$15.830.6%
2020$13.81-10.7%
2021$14.666.1%
2022$14B (estimated)-4.5%

The duty and purpose of the government is to lead the process of productive output, through the creation of the conditions for growth and increased earnings.  Earnings are the sources from which salaries are paid.  Thus, the big question is: if earnings are down, how on earth can the government be granting itself increases of the levels shown above?
 
The related question is: if the mass of public sector workers were given an increase of an average of 20% over three years, how can the Prime Minister give himself a 211% increase over the same period?

The data reveal three stark facts, namely:

  • If we minus the pandemic year of 2020, the average GDP growth over the period is a mere 2.7%.
  • In 2021 and 2022, the total output was about that of 2016 and 2017.
  • The data refute the government’s oft repeated claim that the economy is back to pre-pandemic levels.  The best gauge of pre-pandemic is 2019 or 2018 when output was about $15.5B, average across both years. Both 2021 and 2022 are below that $15.5B mark.

The duty and purpose of the government is the lead the process of productive output, through the creation of the conditions for growth and increase earnings.  Earnings are the sources from which salaries are paid.  Thus, the big question is: if earnings are down, how on earth can the government be granting itself increases of the levels shown above?

The related question is: if the mass of public sector workers were given an increase of an average of 20% over three years, how can the Prime Minister give himself a 211% increase over the same period?

The inescapable conclusion is that the government has acted irrationally, selfishly, and without regard for the realities of the country it is leading.

There is a higher principle to which the government must hold itself and that is the principle of equity.  It is manifestly unconscionable and insensitive for the Prime Minister to give himself an increase which is over ten times the rate given to those he serves. 

Duty to lead and serve by example

Governments tend to use a disingenuous argument when defending massive increases in wages to themselves, while seeking to justify smaller increases to the masses of public sector workers.  The argument is that because they are few (in Jamaica’s case an executive of about 20 and an additional 43 Members of Parliament) a massive increase to them will not have a deleterious impact on the economy.

Minister of Finance and the Public Service, Jamaica– Dr Nigel Clarke

While this is so, there is a higher principle to which the government must hold itself and that is the principle of equity.  It is manifestly unconscionable and insensitive for the Prime Minister to give himself an increase which is over ten times the rate given to those he serves.  While acknowledging that Members of Parliament and Ministers of Government deserve an increase, such an increase ought not to have been so out of line with the country’s actual earnings nor the rate that public sector workers were pressured into accepting.

The way forward

I propose three actions on the way forward:

  • That the government reverses itself. This level of increase over three years is clearly unconscionable.  The reversal could take one of three forms. Either a reduction in the percentage increase over the three years, or a spreading of the increase over five years, or, imposing a red circle such that it does not take a further increase until 2027.
  • That in the absence of (i), the government revisits the package for public sector workers and ensures that greater equity is created between the rank and file and the elected officials.
  • That the Opposition formally opposes the increase and take such steps as it is able to ensure greater equity and recognition of the economic realities Jamaica faces as shown in the GDP data.

Professor Canute Thompson is Professor of Educational Policy, Planning, and Leadership at the School of Education, The University of the West Indies, Mona Campus, and Head of the Caribbean Centre for Educational Planning. He is author of two award-winning books and articles, among his collection of eight books and over a dozen journal articles, and the operator of leadershipreimagination.com website.

2 thoughts on “The inequity of the Jamaican government’s new public sector compensation package”

  1. Trevino Young

    Further to what you’ve shared, in any compensation review there has to be consultation / negotiation between employers and employees.

    This government did not consult the general public who are their employers, nor the lawful opposition.

    There was no appraisal of performance to arrive at a score that informs any level of increased pay.

    Proffering an argument that high salaries will attract the ‘brightest’ is anything but bright. The lure of a big payday for politicians is inherently corrupt. As only the most connected will hold office. And should the public agree to this shameless rationale, it makes them complicit in their own destruction.

    Attempts by government to draw a parallel with public sector workers is grossly dishonest.

    Civil / public services are essential operations for a properly functioning country. Career roles for which public sector employees earn suitable remunerations.

    Politics is a herald to serve your countrymen. Proponents ought to be motivated by a desire to uplift, inspire hope and leave a lasting legacy of national duty. Politics is not a lifetime career. It must never be anyone’s livelihood.

    Service to others should be the magnet and not the prospect of big monetary rewards; which is what exists presently. One is expected to build only collective dreams and have no dreams of singular self-enrichment.

  2. Audrey Cole-Crosdale

    Let me first state that the Andrew Holness led Administration is the most corrupt government ever in the history of the Caribbean region. I state this without apology.

    Their constant display of mafia governance is despicable , vulgar and intolerable!

    I was in shock and traumatized when the story broke about the humongous and morally repudiant salary increases! I had a sleepless night and started to contemplate whether it was worthwhile to continue living in Jamaica.

    My biggest concerns are:

    1. This unconscionable, unjust, unfair, inequitable, unmerited and unjustifiable salary increases will become a 3 day wonder and then we return to business as usual;

    2. The constant display of barefaced corrupt, wicked and partial actions, deception, lying, scamming, conning, bullying , dishonest and unethical conduct and behaviours of the Minister of Finance, the PM and other members of the government that persist without consequences and for which no one is holding them accountable ;

    3. The brazen and vulgar way in which the Minister of Finance hijacked, kidnapped, coerced, bullied, bamboozled, deceived, conned and misled the various public sector groups in signing off on wage agreements and what is most disturbing is how the unions fell into the traps of the minister;

    4. The government deliberately withheld the salary increases granted to the political directorate until the public sectors groups signed off on their wage agreements. Evidence of deception, trickery and con!

    5. The compensation system for the political directorate is unfair, inequitable, discriminatory, lacks probity, lacks social balance and transparency and presents a great financial, social and political risk to the country.

    6. The unfair and inequitable salary increases further demoralizes and demotivates public sector employees with the potential negative outcomes of industrial disputes, political unrests, strikes, brain drain, declining productivity, theft, fraud, pilferage, poor governance, high employee turnover, low employee engagement, low economic growth and mass migration.

    The government should:

    1. Reverse the salaries,
    2. Re-enter negotiations with public sector groups
    3. Complete the compensation review and resolve the various anamolies that exist before granting salary increases to the political directorate,
    4. The Opposition should reject the increases and aggressively champion the process to reverse the inequitable, unjust and discriminatory salaries ,
    5. The government must through a process of social dialogue, participatory democracy and governance, consultation and engagement develop and inplement job descriptions, a performance accountability framework and appraisal tool with KPIs for the political directorate which will be used to assess their performance over specific period,

    6. Salary increases must be tied to inflation and the country’s earnings .

    Overall, the barefaced mafia behaviour of the JLP GOVT must be stopped and no longer be tolerated.

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