Newly installed Jamaica Teachers' Association (JTA) President Michael Stewart, in bringing greetings at the inaugural Eric Downie Memorial Lecture organised by the Boulevard Baptist Church as part of its 40th anniversary celebrations, reminded the audience that the late Eric Downie, then president of the JTA in the aftermath of Hurricane Gilbert, led the 1988/89 salary negotiations. At that time, the Edward Seaga-led government claimed that there was no money to pay the teachers. The Downie-led team proposed that teachers be issued government bonds, which the Government accepted and there was industrial peace.

Similarly, the Bruce Golding-led government claims that there is no money to honour a signed agreement with teachers, police and other public sector workers. There is the Edward Seaga template that can be used. Seaga has publicly complained that Golding has not consulted him about financial matters, but even so, Golding was a member of that Cabinet so he should know or at least be able to recall how those wage negotiations were settled.

This government signed these contracts within a year of its first term and ignored the advice of a Gleaner editorial that warned of the repercussions of such an award. The Government cannot claim ignorance of the economic climate. But be that as it may, the Government has signed contracts and that should mean something. The credibility of the government and the people of Jamaica depend on it. If we cannot trust a government paper then we will descend into anarchy and social unrest. If Jamaicans have a contract with a private sector body and it is not honoured, the company will send a bailiff. If government is owed taxes, government officials will send the tax collectors who will charge the citizens with interest. A signed contract ought to be honoured.

Higher than market price

There is recent precedent of honouring a contract. In last Sunday's Gleaner there was a report about a purchase of dehydrated ethanol by Petroleum Corporation of Jamaica (PCJ) from Infinity BioEnergy. It was revealed in Parliament that the purchase was significantly higher than the world market price, costing the country US$17 million more. The PCJ, on the advice of the Solicitor General, claimed that the exchange of emails between the then PCJ chairman and BioInfinity obligated the Government to take the shipment. So how is it that we have to honour that contract, but we do not feel obligated to honour wage contracts with our own people?

My advice to the Government is to honour the wage contracts. We should have negotiated with the workers and allow them to offer solutions such as wage freeze or wage cutbacks. However, since that road was not travelled, we need to try something different. The government should offer long term bonds with interest. Anyone who breaks the bonds would lose the interest and be penalised for a default. Furthermore, when the new round of negotiations begins, then the Government could plead inability to pay and implement either a wage freeze or wage cuts.

However, it is dangerous to have a distress default by the Government on signed wage contracts. Standard and Poor downgraded Jamaica for a similar reason and we are aware of the serious implications and effects such a rating can have on the economy.

Additionally, we do not want teachers, police and other public sector workers to be unduly and unnecessarily angered. We need them to feel appreciated and respected. They are the ones to help us out of this economic and social crisis. Teachers need to be teaching at an optimum so that Jamaica can produce well-rounded students. The police force needs to be energised to tackle crime and violence.

Let us move forward and settle the salary negotiations through the issuance of bonds.

Devon Dick is pastor of the Boulevard Baptist Church and author of Rebellion to Riot: The Church in Nation Building. Feedback may be sent to columns@gleanerjm.com