The watchdog for Government's financial discipline says there's no "further room" for increases in wages to public sector workers in an appeal to unions and the finance ministry to wrap up negotiations before the new fiscal year starts on April 1.

"Jamaica cannot afford to reverse the tremendous gains that all Jamaicans, inclusive of the public service, who have observed great restraint and sacrifice to achieve. We are very concerned about the risks of derailment of the macro-fiscal program or possible further breakdown in industrial relationships between the GoJ and its employees," said the Economic Programme Oversight Committee (EPOC), a body set up in 2013 to monitor implementation of reforms under Jamaica's agreement with the International Monetary Fund.

Government has signed off deals with over 60 per cent of public sector workers under a new compensation review but agreements with two major groups - police and teachers - representing 30 per cent of the public sector remain outstanding.

EPOC, which comprises representatives from the private and public sectors, and civil society, said Sunday that the economy has rebounded to pre-covid levels and tax revenues have over performed budget, allowing the Government to increase allocations for wages and salaries from the original budgeted $268 billion to $318 billion for this fiscal year. 

But it says based on a review, Government "simply has no further room to increase the allocation to the public service in the current fiscal year 2022/23". 

"The GoJ (Government of Jamaica) has projected GDP to grow by 1.6% in the next fiscal year and it is highly unlikely that tax revenues will continue to exceed budget at current year levels, and the fiscal room will not be there to increase beyond the $338 billion which is projected for the 2023/24 fiscal year," EPOC said in a statement Sunday. 

It said: "EPOC appeals to GoJ and outstanding public bodies to finalise negotiations. EPOC is strongly encouraging outstanding public bodies and their staff associations that they continue to be transparent and communicate to their membership the details of the proposed salary packages, and the risks that they face in terms of payments being possibly protracted over years, rather than they receiving their increased compensation in full for 2022/23."

And according to EPOC, under the Fiscal Administration and Audit Act, "no portion" of the expenditure for salaries in this financial year "can be carried over into the new financial year of 2023/24".  

EPOC says the Government should continue to engage the leadership of the unions and the employees they represent "as time is not on our side as negotiations must be completed to ensure that the payments can be made from Jamaica's consolidated fund by March 31". 

EPOC's statement comes roughly two days before Finance Minister Dr Nigel Clarke opens the 2023/2023 Budget Debate in Parliament. 

Clarke indicated last month that  there was no room in the 2023-2024 budget to accommodate payments to public sector workers who have not signed the compensation agreement before the end of the current financial year.

Corporal Rohan James, president of the Jamaica Police Federation, told The Gleaner that he was not concerned about the announced timeline. And at a meeting with members on Friday, he said a revised offer from the ministry a day before did not address the group's concerns, which include the absorption of certain allowances in basic salaries. 

The more than 25,000 member-strong Jamaica Teachers' Association (JTA) is also continuing negotiations having rejected a revised offer weeks ago.