Left: Audley Shaw, minister of finance and the public service. Right: Omar Davies, opposition spokesman on finance. - Rudolph Brown/Chief Photographer.

The Jamaica Confederation of Trade Unions (JCTU) has put the country on high alert for further wage freezes and public-sector job cuts.

Vice-president of the JCTU, Danny Roberts, on Wednesday described Jamaica's return to a borrowing relationship with the International Monetary Fund (IMF) as "inevitable", and said the consequences of borrowing from the IMF may be grave, arguing that the conditionalities could impact jobs and income.

"We need to brace ourselves for the possibility of a wage freeze, cut in the public sector employment, whether it is done on a phased basis over time, devaluation, higher interest rates and accelerated privatisation of public assets," Roberts said.

He added that "this is the kind of monetary and fiscal measures at least nine countries have experienced under the IMF since September 2008".

Finance Minister Audley Shaw on Tuesday told Parliament that Cabinet has empowered him to borrow from the IMF.

Shock treatment

Responding to whether there would be massive job losses in the public sector, Shaw said, "There is no immediate plan for Government to provide any kind of shock treatment to the public sector."

He also said that he intended to drive down interest rates but did not elaborate on a plan for achieving that goal.

However, the finance minister hinted that the country's internal creditors were enlightened and may be willing to accept lower rates on coupons.

However, Opposition Spokesman on Finance Dr Omar Davies cautioned him not to use the words of the creditors as a platform for optimism, suggesting that Govern-ment show a credible route towards cutting interest rates.

Meanwhile, Roberts said the Government has to be upfront about the possible conditionalities for the return to the IMF. The JCTU vice-president also said that Government needs to put in place viable structural measures to improve Jamaica's capacity to earn the foreign exchange.

"It has to take place within the context of a macroeconomic strategy that sees the state playing an activist role in stimulating the economy, promoting decent work and providing the kind of social safety net that protects the poor and the vulnerable," Roberts said.

daraine.luton@gleanerjm.com

Danny Roberts, vice-president, Jamaica Confederation of Trade Unions. - Colin Hamilton/Freelance Photographer