Productivity

The headlines in the newspapers clearly reflect that we have not cast off the problems and challenges of 2010. One of our major challenges remains increasing the productivity of the public workforce.  This is being hindered at present by a number of factors.

In early January, apart from the strike by maxi taxi operators, public servants, led by Public Services Association President Watson Duke, protested against the unresolved wage negotiations between the PSA and Government, setting out on foot to demand that Government offer more than the proposed 5%. These two protests, occurring simultaneously as they did, could have potentially shut down the country.  No doubt business activity was compromised as subsequent media reports showed a reduced turn out of employees at Government offices.

Both issues to date have not been resolved. The President of PSA recently announced that public servants will set out once again to protest for higher wages later in January. The Chamber agrees that for workers to perform at their best, fair payment and healthy working conditions must be encouraged however we continue to be concerned at what we see as the deterioration in these negotiations and the recent inflammatory and irresponsible utterances of the President of the PSA.

The Chamber would like to see these negotiations treated with the urgency they deserve and due process as the law provides.  History shows that ongoing disputes between Government and trade unions create instability which deters foreign investors and inevitably affects the economy and global competiveness of the country. Last year, T&T’s rankings in the Global Competitiveness Index and Ease of Doing Business Report continued to show an unacceptable low ranking. It is hoped that this year, as part of our national resolution, we will ALL collectively work at reversing this. The Chamber accepts that this is a challenge which requires a multipartite approach.

The Government on its part, has kept its promise to increase the minimum wage at the beginning of 2011, which has been set at $12.50 per hour, an increase of 33%.  Added to this, considering the fiscal challenges we have with our local economy it is difficult for the Government to respond positively to all the demands being made by the several interest groups who are all agitating for immediate settlement.

What is certain is that if our objective is to get the wheels of the economy churning again, National productivity must increase. There is a clear argument that wage negotiations, whether public or private sector, must be linked to increases in productivity.  It is time for the country to begin to adopt creative strategies to achieve this. The once active National Productivity Council needs to be revamped and reconstituted. With this issue addressed we can then begin to focus more of our energies on other pressing matters being faced by our communities and threatening growth and stability of business.

In such times as these we need to work together to find solutions which will not further jeopardize our economy. Let us remember that our common goal as rightly epitomized in our National Coat of Arms should always be Together We Aspire Together We Achieve.