News and Updates | Economic Programme Oversight Committee (EPOC)

Oversight committee seeking to engage workers in public sector transformation

Co-chairman of the Public Sector Transformation Oversight Committee (PSTOC) Danny Roberts says the committee has endorsed a survey that will assist in engaging public sector workers in fulfilling its mandate.
Roberts said that the survey, to be undertaken by the Hugh Lawson Shearer Trade Union Education Institute and the Mona School of Business and Management at the University of the West Indies, will allow employees to contribute openly to the discussions and the direction of organisational growth and transformation.
“This will provide the starting point for further engagement between the Public Sector Transformation Oversight Committee and public sector worker”, he said.
The decision was taken during the third quarterly meeting of PSTOC on July 12, which reviewed the second-quarter benchmarks and commitments under the Memorandum of Economic and Financial Policies, as set out under the Precautionary Stand-By Arrangement (SBA) between the Government of Jamaica and the International Monetary Fund (IMF).
PSTOC is the broad-based committee — comprising stakeholder representatives of the public and private sectors, trade unions and academia — set up by Prime Minister Andrew Holness in November 2016 to review the Government’s implementation of the public sector transformation-related activities and structural benchmarks and report to the public.
Roberts told the Jamaica Observer that the committee has taken note that all the structural benchmarks under the stand-by agreement with the IMF have been met for the month of May.
These included: (a) Identifying the positions that will be affected due to the implementation of shared corporate services in human resources; (b) instituting rules to prohibit the rehiring of participants in the early retirement programme into the public sector for at least five years; and (c) submitting to the governor general rules and standards for the Public Service Commission, for limiting the approval of continued employment after retirement age, including as contract officers.

The committee noted that the time-bound plan for the reintegration of eligible public bodies into central government, which is to be submitted to the Cabinet by the end of July, is on track.

The Government also met the structural benchmark to submit to Parliament by June 15, 2017, all necessary legislative changes to direct all earmarked revenues from three public bodies to the consolidated fund.
In fact, Parliament approved three bills last week, which will facilitate the three public entities — the Jamaica Civil Aviation Authority, the Tourism Enhancement Fund, and the Culture, Health, Arts, Sports and Education — being incorporated into the Government’s central operations.
The Bills require that payments to the three entities will be collected by the collector of taxes, instead of going directly to them. Their passage fulfilled the benchmark agreement with the fund.
“What it means is that we will take their budget into central Government and give them what they need [to operate],” Finance Minister Audley Shaw told the House of Representatives on July 11, when the Bills were passed.
“The committee wishes to remind the public that the structural benchmarks are critical to the success of the current IMF programme and that the work of the Public Sector Transformation Implementation Unit has been closely monitored to ensure the removal of all obstacles that could interfere with the implementation dates,” Roberts told the Observer.
He said that the committee also reviewed the implementation schedule for the commitments under the SBA programme.
“It noted that the functions of the Agricultural Credit Board and the Department of Cooperatives and Friendly Societies have been integrated and that the completion of the mergers awaits the passage of the Agricultural Loan Societies and Approved Organisations legislation by Parliament,” Roberts said.
“The legislation setting up the Jamaica Agricultural Commodities Regulatory Authority has been passed. The passage of the regulations to give effect to the merger of the cocoa, coconut and coffee industry boards into the Jamaica Agricultural Commodities Regulatory Authority is to commence shortly.
He said that in the area of social protection, the committee received updates on a number of commitments, including the National Identification System, the graduation strategy for Programme of Advancement through Health and Education (PATH) householders, and the review of the impact of PATH benefits on improving school attendance.
“While the deadline for the PATH graduation strategy was met, the committee took note of the delay in the field work for the review of the impact of PATH benefits due to the rains in April and May,” Roberts added.
He said that the committee requested the earliest finalisation of the Change Management Strategy, and took note of the fact that a change management expert has to be brought on board shortly.
Source: Jamaica Observer

Economic Growth Council Concerned About Missed Targets And Deadline In Growth Agenda

The Economic Growth Council has raised concern that the Government has missed some of its deadlines.
The Michael Lee-Chin-chaired Council in its April to June Report to the nation points out that the Government missed its May deadline to complete Public Procurement Regulations and Handbook of Public Sector Procedures.
Commenting on the missed deadline, Lee-Chin said the proposed legislation will be an important tool in the drive towards economic growth.
The Public Procurement Act provides for the establishment of the Procurement Policy Office, the Public Procurement Commission and strengthening and expansion of the function of the Procurement Review Board that will regulate and harmonise the public procurement process.
Meanwhile, the Economic Growth Council has raised concern that the Urban Development Corporation (UDC) and the Factories Corporation of Jamaica (FCJ) did not submit to Cabinet a plan to divest up to 20 per cent of their assets by the May deadline.
Lee-Chin has called for the entities to fulfil the mandate.
He notes that the Ministry of Economic Growth and Job Creation is finalising the submission with respect to the UDC assets and the FCJ Board is still in the process of putting together a list of assets to be divested.
Source: The Gleaner

Government of Jamaica Looking To Implement New Wage Negotiations Framework for 2017/19

The Government is looking to implement the new framework for public sector salary negotiations during the 2017/19 contract period.
The framework, which has been endorsed by Cabinet, provides more structured and clearer guidelines for salary negotiations.
State Minister in the Ministry of Finance and the Public Service, Hon. Fayval Williams said among the provisions is a proposal to extend the contract period from two to three years, which will be discussed with the unions.
The move, she said, is aimed at facilitating “prudent forecasting” of the wage bill and timely payments which, she noted “should ideally be at the beginning of each financial year.”
Mrs. Williams indicated that representatives of the Ministry will be discussing the overall framework in order to arrive at a consensus on its implementation.
She was addressing a special forum hosted by the Ministry for representatives of the Government, the unions and staff associations at The Knutsford Court Hotel in New Kingston on Wednesday, July 26.
Mrs. Williams said at the outset, discussions will be initiated regarding the development of negotiating protocols at the beginning of each round of salary discussions to which “the parties must agree.”
This, she said, would include all aspects of arrangements in place at individual Ministries, Departments and Agencies (MDA), including monitoring and communications mechanisms.
Mrs. Williams said Cabinet underscored the need for adherence to the Government’s policies and guidelines for negotiations.
These, she said, include the submission of all claims for central and local government bargaining units to the Director of Industrial Relations via the Financial Secretary; negotiations being led by the Ministry’s team supported by the respective MDA management; and escalation of unresolved issues through the hierarchy to the Minister with responsibility for the Public Service, and to the senior Portfolio Minister, if necessary.
“Should the matter remain unresolved , (then) consultations will be had with the (respective) Portfolio Ministers or the Cabinet for a decision on the matter, thereafter the industrial relations machinery may be employed,” she indicated.
Mrs. Williams said claims for provisions such as meal and taxi allowances, which are common across the public service, are to be negotiated by the Government with a team comprising representatives from unions and staff associations.
She noted that all other items will be negotiated with each bargaining unit, adding that “these will be carefully managed to ensure that no unfair advantage is derived based on positional power due to the size of bargaining units.”
Additionally, Mrs. Williams said administrative matters relating to provisions such as computers as well as occupational health and safety issues should be dealt with at the MDA level, while negotiations for employees attached to public bodies should be conducted with the management of those entities, unless otherwise directed or routed.
“While the Ministry of Finance and the Public Service represents the Government at the bargaining table, we want you to engage your parent Ministry and develop that kind of relationship that will see only issues of improvement in salaries and allowances being negotiated at the table,” the State Minister pointed out.
Mrs. Williams said that as the Government and trade unions prepare to commence discussions for a new wage contract, “let us all recommit to the general principles that have survived over a decade and embody the spirit of engagement and special dialogue between you and us.”
State Minister with responsibility for the Public Service, Hon. Rudyard Spencer, who also spoke at the forum, noted the challenges associated with the negotiating process, among which are protracted settlement timelines.
While acknowledging that the unions have a duty to secure the best package for their members, he said “we have to consider the value of money and conclude negotiations in a timely manner to make each dollar reach the point that it should, instead of barely making it two or three years later.”
Source: JIS

July 2017: Update on 3-year IMF Precautionary Stand-by Arrangement (PSBA)

The new Precautionary Stand-By Arrangement (PSBA) with the Government of Jamaica (GOJ) was approved by the Executive Board of the International Monetary Fund (IMF) on November 11, 2016. The GOJ met the indicative programme conditions for the IMF SBA as at end-March 2017*.
The EPOC met on July 17, 2017, and reviewed the latest available results. Jamaica has met all structural benchmarks under the programme through end-June 2017. Based on the preliminary results for performance to date, the GOJ is on track to meet the targets for the QPCs and ITs for the IMF PSBA for end-June 2017.
* Based on the results for performance to date through the end of March 2017.

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World Bank urges Jamaica to diversify

Jamaica’s tourism industry may find itself in need of a drastic overhaul as data from the World Bank points out that the island, among other Caribbean countries, is now lagging in competitiveness behind other regions in the world.
Tourism, which is currently one of Jamaica’s largest earners of foreign exchange, was on Wednesday red-flagged by the World Bank as one of the long-term risks and vulnerabilities that the country faces, in addition to its legacy of high debt, policy uncertainty and recent flooding.
According to lead economist at the World Bank, Philip Schuler, the Caribbean’s tourism model has shown trends of decline in competitiveness, with countries in south Asia, east Asia and sub-Saharan Africa expected to grow at faster annual rates in tourism and investment than the 3.6 per cent Caribbean countries will see over the next 10 years.
“The Caribbean is a very tourism-dependent region; it’s growing, but it’s growing much more slowly than the world as a whole,” Schuler told media representatives during a briefing on the World Bank’s analysis of the macroeconomic outlook for Jamaica in the context of the new US$70-million Development Policy Loan approved by the bank.
He added that data presented by the World Travel and Tourism Councils places the Caribbean in the bottom half based on the region’s average annual contribution of tourism to gross domestic product (GDP) and investment.
“Essentially, the model of tourism in the Caribbean and Jamaica is one that is very much focused on enclave, all-inclusive beach resorts, and that is not a fast-growing segment of the world tourism market,” Schuler said.
He reckons that Jamaica and other Caribbean islands could increase visitor arrivals with the introduction of more ecotourism, cultural tourism and farm tourism.
According to the World Bank, Jamaica’s economy has been moving on a positive trajectory over the last four to five years, with year-on-year increases in GDP and total employment. The same has also been reflected in the country’s external balances, with 2016 recognised as the best in 20 years when the current account balance almost balanced GDP, led by increases in net export services including tourism and BPO services, as well as a declining trade deficit.
ROOM FOR MORE SMALL BUSINESSES TO GET IN THE GAME
Nonetheless, the World Bank believes that Jamaica can capitalise on a lot more opportunities in tourism to reflect the changes in the global demographics.
“The generation that’s getting older and travelling less liked cruise, all inclusive resorts. The younger generation — the millennials — are looking for more authentic experiences. Learn how to cook Jamaican food as well as going to the beach — there are new types of products and a lot of opportunities,” he said, adding that more tourists are now making visiting arrangements on their own with the introduction of Airbnb and TripAdvisor.
“That wasn’t always to the advantage of Jamaica where international companies take that money from the traveller and keep the profit and handing out small amounts to line up different activities at the resort and not spilling over into other parts of the economy,” he reasoned.
Schuler noted that the change in how international guests interact with destination markets presents an opportunity for more small businesses to get into the game and “to link up with younger travellers”.
Through the Rural Economic Development Initiative, the World Bank and the Jamaica Social Investment Fund have supported projects in the Cockpit Country and Rasta Village in St James.
Still, Country Manager Galina Sotirova says the hotel standards are tailored to the big tourist resorts and creates a real obstacle to the development of small projects.
“[What] you hear from a lot of the project managers is that the standards that they have to comply with in order to get onto the tourism website and be registered with the tourism board are not suitable for the kind of tourism they are looking at,” Sotirova said.
She added that there are regularity issues that need to be addressed, and the World Bank is working with the Government to ensure more support is given in how smaller firms market and sell their products.
Source:The Observer