Golding: Cabinet jobs may also go

It’s one of the measures the ruling Jamaica Labour Party (JLP) says it’s putting in place to plug a near US$182 million shortfall in revenue collections.

The Jamaica government employs some 117,000 people.

Prime Minister Bruce Golding said the move was necessary to make the government more efficient and reduce the wage bill, which has doubled over the past 24 months.

Cabinet not immune

Declaring that he was prepared to deal with the political backlash, Mr. Golding also said members of his 18 member cabinet will also be placed on the chopping block.

“In reducing the size of government, the size of cabinet and the number of ministers will also have to be dealt with,” he declared.

Prime Minister Golding reported that : "The economy is experiencing a severe downturn. Our export earnings have been cut in half... some 30,000 people have lost their jobs... remittances have dropped by 15 per cent."

"The result," he said, "is that almost every category of revenue collections is below what we had projected and in some instances below even what was collected last year."

Opposition leader Portia Simpson-Miller of the People’s National Party (PNP) said she is not impressed with the government's plans.

“Cuts have been made across the board without any clear policy imperative,” she stated.

The PNP leader described the government’s plans “a slash and burn approach".

The government’s proposals also include a consumption tax on phone calls, phone cards and telephone units and accessories.

The departure tax to leave the country will also be increased.

The opposition PNP has criticized the government for presenting what it called “over optimistic revenue targets” during the Budget Address in April.

Not unexpected

Meanwhile the union representing Jamaica’s public sector workers has said that it’s not surprised by the planned job cuts.

Jamaica Civil Service Association (JCSA) president, Wayne Jones, said it was not unexpected and that they have been preparing for this development by offering members retraining opportunities.

Puerto Rico protests

On the other hand in Puerto Rico labour unions have voiced their displeasure with that government’s plans to send home thousands of workers in a new wave of lay-offs.

The authorities in the US territory are fighting burgeoning budget deficit but will also have to contend with possible strikes.

The budget deficit there has been put at $3.2 billion.

	Puerto Rico demonstration. (File photo)

Demonstrations have already started in Puerto Rico.

Earlier this week, union leaders scuffled with police outside the residence of Governor Luis Fortuno during a protest against mass layoffs of public workers in the US Territory.

Recession woes

The island is struggling through the third year of a recession - it has a jobless rate of 15 percent - higher than any American state - and the worst credit rating of any state or territory in the US.

Some 8,000 public workers were laid off in May and the government has said that around 17,000 more civil servants could be sent home in a move expected to save close to $400 million.

Union leaders are calling for an island-wide strike for October 15 to protest the layoffs.

The territory's government has appealed to the Obama administration for federal assistance and governor
Fortuño is reported to have met last week with Lawrence Summers, the chief economic adviser to President Obama.

Mr Fortuno is predicting a 5.5 per cent decline in real gross national product this year followed by a return to marginal growth next year.