Jamaica Gleaner
Published: Thursday | November 26, 2009
Home : Business
More job cuts loom in 2010
Edmond Campbell, Senior Staff Reporter

As the Government cranks up the Public Sector Trans-formation Unit to cut staff, merge agencies and redeploy resources, hopes that the private sector could mop up some of the haemorrhaging next year might be dashed as job losses loom there as well.

Leading private-sector interests told The Gleaner Tuesday that they could provide no guaranteed for a cessation in downsizing, particularly if the economy continued to buckle under the pressure of the global recession.

Earlier this month, Prime Minister Bruce Golding reported that an estimated 40,000 Jamaicans had lost their jobs since the worldwide recession started.

Save positions

President of the Jamaica Manufacturers' Association Omar Azan said despite efforts to save positions, no assurances could be given in relation to job security next year.

"If it (economic downturn) continues for much longer, I know a lot of people are going to have it harder at this particular time," Azan said in a Gleaner interview.

President of the Jamaica Emplo-yers' Federation (JEF) Wayne Chen said many companies have already rationalised and downsized. However, he indicated that the process might be ongoing.

He said the Government's proposed plan to trim the size of the public sector would not influence employers to reduce or maintain staff levels.

"The first priority of any business is to stay alive, depending on the external environment businesses will have to do whatever is necessary to stay alive. A business that has failed is of no use to the worker," he pointed out.

Chen asserted that government policies, such as tax reform and initiatives that stimulate investment and employment, was important to the private sector.

While taxes were a good source of revenue, the JEF president said they could also "shake the economy in terms of making it viable for businesses to continue".

Social safety net

He also argued that strengthening the social safety net could facilitate increased employment.

"When the employer does not have to bear the entire burden of the cost of an employee, meaning when an employee has a subsidised bus fare or subsidised school fee or subsidised health, it makes the cost of employing people less and stimulates employment," he added.

Meanwhile, Azan, who is also chairman and chief executive officer of Boss Furniture, said he had introduced measures to save jobs at his company.

Employing 225 workers, Azan said the company has had to reduce its workdays, because of decreased workload, in an effort to avoid layoffs.

"Where people would normally work five days a week, some weeks we work three or four days. It allows everybody to get a piece of the pie," he said.

edmond.campbell@gleanerjm.com

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