Mark Wignall | Sharing the economic pie

A most interesting Gleaner column written by Leroy Fearon caught my attention recently.

Titled ‘Jamaica’s wage woes persist’, it began by stating the obvious, ‘The findings of the Caribbean Salary Survey Report: Pay Pulse 2024 are a stark reminder that Jamaica is falling dangerously behind in providing competitive wages.’

Any subject that veers too close to what some arch conservatives deem is a socialist dream is never going to find favour with many of those in the private sector. That said, I do believe that the private sector is somewhat far removed from the bosses and the fathers of the 1970s and have grown more progressive in their general outlook.

It went on to state: “Despite a recent national compensation review that initially seemed remarkable, the results clearly show it missed the mark. Hard-working Jamaicans continue to earn some of the lowest salaries in the region, with pay levels falling below the regional average in 91 per cent of roles surveyed – the worst outcome among the 20 Caribbean countries included.

“For years, Jamaicans have been asked to endure wage freezes and meagre salary increases for the supposed benefit of the economy. Yet, the sacrifices of the average citizen have yielded little improvement in living standards.

“In 2024, young people still struggle to secure affordable housing, with mortgages for suitable homes often exceeding $20 million – a figure far out of reach for those earning Jamaica’s substandard wages. This is a disservice to the youth striving to build a better life.”

This, obviously, is not an ideal message that any government in power since 2016 would like to champion in next year, 2025, as it seeks another bat at the wicket. To add quiet fire to the vexed fury, one of the creature comforts seen regularly at innercity spots are more than a proliferation of highly expensive Benzs, BMWs, and Audis.

What this does is spit out the obvious to those seeking another ‘special’ at the bar and a few pounds of chicken back at the corner shop: “I am making it. Get with the programme and stop pressuring me.”

It is very obvious that a curious curve of affluence and opulence has descended on the ghetto, for better or worse. Much more than a decade ago.

The article goes on to state: ‘The recent compensation review aimed to address these issues, but it failed to tackle the root causes of wage stagnation or close the gap between salaries and the cost of living. Meanwhile, other Caribbean nations, such as The Bahamas, St Kitts and Nevis, and Barbados, have implemented policies that ensure their citizens are paid well above market averages in most roles. This has left Jamaica lagging at the bottom, a position that is both untenable and embarrassing.’

Mr Fearon brings it to a more concentrated level. ‘Low salaries are not just an economic issue – they represent a social and moral failure. They perpetuate poverty, stifle workforce productivity, and force many of our brightest citizens to leave for better opportunities abroad. If the Government is truly committed to national development, it must make comprehensive wage reform a top priority for the next financial year.”

INEQUALITY ALL AROUND

It is never an easy job for a government to begin the process of addressing a critical issue that it should have tackled about a decade ago. But we ought to bear in mind that in the opening up of BPOs in Jamaica, at the very least, the Jamaica Labour Party government knows that a start has to be made. In the 1980s, Eddie Seaga had to deal with the pressing socio-economic problem of joblessness.

The Free Zone saw many women securing jobs that indeed, were ‘sweatshop’ employment. But what choices did he have in finding jobs for young women who could barely read and were borderline numerate? In time, he was criticised, and eventually, it started to unravel even as the US government under Reagan had its fingers on the economic scale for Jamaica.

Most Jamaican governments have been scared to tackle employment inequities, and some would have hoped that much of its solution would be driven by an internal engine in the PSOJ. Wishful thinking?

I don’t believe that Seaga trusted any part of the PSOJ, but he knew that its natural toxicity in protecting itself was needed. Michael Manley’s dance with the private sector was an awkward one, and he knew that once he opened his mouth to criticise who he saw as the fat cats in the PSOJ, another war of words would persist for months.

SEARCHING FOR SOLUTIONS

Among some of the key solutions is opening up access to affordable housing. That will present an immediate stumbling block as developers will choose the plans that will present them with bigger returns - that is, high-end housing.

“Implement a minimum wage that is not just symbolic but genuinely reflective of economic realities. Encourage industries to adopt pay structures that reward skill and productivity.” Another problem area.

Fearon counters with: “Diversify the economy by attracting high-paying industries, such as technology and renewable energy, to Jamaica. Provide training programmes to equip citizens for these roles.” Here is where the education ministry has to diversify its own standard role.

“The Government must act decisively in the next financial year. Wage reform and housing solutions are not luxuries – they are necessities for a stable Jamaica. Failure to address these issues is a betrayal of the trust and hard work of the Jamaican people.

“The ball is in the Government’s court. Will they rise to the occasion, or will they continue to ignore the cries of their citizens? The time for action is now.”

Mark Wignall is a political and public affairs analyst. Send feedback to columns@gleanerjm.com and mawigsr@gmail.com.