11 / 55
Page | 10
o
Public sector workers who have been on a wage freeze for the past five
years, had a measure of protection in the first two years, when the
exchange rate remained stable thereby keeping prices stable, but in the last
three years, this government broke the social contract with public sector
workers by presiding over the most aggressive devaluation of the Jamaican
dollar since the same PNP government’s devaluation during the 1990s.
o
When the workers signed on to a three-year wage freeze they did not know
that they would be put into a state of abject poverty with the depreciation
of the exchange rate. Minister Phillips did not tell them he would be
signing an IMF agreement that requires currency depreciation. The May
2013 IMF Extended Fund Facility spelt out the IMF’s assessment that the
Jamaican currency would need to depreciate by 9-22%. Over the past three
years under the PNP government, the currency has depreciated by more
than that. In fact, it has depreciated by 34%.
o
And now the public sector is being asked to band their bellies a little more
with a little pittance of a wage increase that cannot make a dent in the
worker’s ability to cope with the high and escalating cost of living. A noted
Trade Unionist, Danny Roberts, was moved to describe many public sector
workers as the “emerging working poor”.
o
And now, in addition to our workers on limited incomes being poorerer,
what else do we have to show from this strategy of devaluation?
o
While imports have fallen, exports instead of increasing, have also declined
and the economy declined in the last two quarters of calendar year 2014.
The Jamaican economy is in a recession.
o
And while we fail to grow the economy and create jobs, we opt instead for
regional political theatre in advancing a Caribbean Court of Justice when we
know that to attract foreign investment, it is better to stick with a Court of