In any labour compensation system, it is necessary to establish the authority for setting the pay rates as much as it is important to determine the mechanism for such rates in the Jamaican public sector. Rates for wages and salaries are determined through the International Labour Organisation's Principles of Collective Bargaining, which require the employer and trade unions representing the workers to engage in negotiations aimed at setting the levels of remuneration for work done.

The minister with responsibility for the public service is the authority, after agreement is reached with the unions, who then presents these rates to the Parliament via the Civil Service Establishment Order - an annual schedule of posts and related emoluments for the public service. Where posts are not included in this list, as in the case of statutory bodies and government companies. Such rates are subject to the approval of the ministry with responsibility for the public service. In other words, the authority remains in one place. This, no doubt, is to ensure orderly conduct of the Government's compensation policy and to guard against actions by state entities that could undermine the Government's wages and salaries policy.

Constant and unimaginable chaos

Recent announcement of 'voluntary cuts' in wages and salaries are nothing more than donations/contributions to a cause. If public officers could voluntarily and unilaterally direct changes in their salary rates, this would serve to effect constant and unimaginable chaos and confusion on the system.

Second, since the public sector operates a scale system of compensation, any reduction in pay rates for one or some members of a group must apply to all members of that group. Any other action would result in the creation of anomalies within and between the groups, which could see the disturbance of what is known as internal and external relativity. The supervised could very well become better paid than his supervisor, thus causing a possible undermining of the supervisory relationship and other problems.

Lower taxable base

Additionally, it must be observed that any reduction in rates of pay have concomitant effect on the amount of taxes to be calculated against that income. Income tax, for example, would be taken from a lower taxable base. Likewise, the National Housing Trust contribution would be reduced. The education tax, too, would see a fall. If, in fact, the gesture is to help with the fiscal challenges of the Government, then it must be revenue neutral, i.e. the consolidated fund must not be called upon to take less even when it is being asked to pay out less in remuneration.

The recent decision by members of the political directorate to take varying levels of pay cuts is simply donations and contributions to help particular causes. This, in the case of some councillors, is to be facilitated by the well-established system of salary deduction - a method many workers are already using to make donations to charitable organisations like United Way, Food For the Poor and Red Cross.

It must, however, be ensured that the deductions are made after and only after the statutory deductions are made. It is a personal deduction and that's how those are treated. Let it also be understood that pay rate changes have implications for pension calculations and, given the complaints by our past and present politicians about the inadequacy of their retirement benefits, it might be necessary for them to be clear as to what their gesture is intended to do.

I am, etc.,

WAYNE ST. A. JONES

President

Jamaica Civil Service Association