While cost of living continues to escalating daily, members of the public sectors are being held to ransom by the Public Sector Memorandum of Understanding (MOU). The MOU came into effect February 17, 2004 and was signed by the Government of Jamaica and The Jamaica Confederation of Trade Unions. The agreement was to apply to Central and Local Government and all other Government entities, commissions, companies, corporations, institutions and statutory bodies.
Basically, a wage restraint was placed on the public sector for the period April 1, 2004 to March 31, 2006. The Government would manage its economic policies in order to ensure that the inflation rate remained within the Government’s targeted band of 8% to 9% in 2004 to 2005 and 6% to 7% in 2005 to 2006. The MOU would be considered breached if either party violated any of the provisions. Any breach would be reported to the Monitoring Committee, which would decide on an appropriate course of action.

Follow up:

Public sector workers are amongst the lower paid workers in the island. Everyone living in Jamaica will tell you that over the past year the price of everything, goods and services has escalated. All essential utilities, light, water etc. have gone up. The percent increase on most things is also very significant. Some things have increased as much as 100% and more including the price of petrol.
The other major problem with the MOU is who falls under it. More and more workers are being told sorry we can’t grant you any increase because of the MOU. The popular cry is, but we did not sign the MOU. Such was the case with the Rank and file Police Officers and the Air traffic Controllers to name a few.
So, signed or not signed, where does this leave members of the public sector? So far for this year the inflation rate is 10.23 or so they claim. That figure surly does not reflect what is happening to most Jamaicans financially. It seems to me that on the strength of the inflation rate alone the MOU is breached. People are now under severe stress trying to just survive day to day. March 31, 2006 looks a far way off. Let’s hope that the Government has a master plan up its sleeve or all hell is sure to let loose then.
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