Compensation Management - Transformation Implementation Unit (TIU)

95 per cent of Public Officers Accept New Compensation

Damian Graham — Wed, 05 Apr 2023 00:28:41 +0000

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, has thanked civil servants for accepting the Government’s restructured public-sector compensation package. Dr. Clarke, who closed the 2023/24 Budget Debate in the House of Representatives on Tuesday (March 21), advised that 95 per cent of public officers have indicated acceptance of the offer, which sees them getting a 20 per cent salary increase over three years, from 2022/23 to 2024/25. “I thank all members of the public service, which number 105,000. What we have accomplished together… have never even been attempted before, let alone done,” he said. “This is a historic restructuring… which creates a simple easy-to-understand, fairer and more equitable compensation system that gives us a better opportunity to attract and retain the talent we need,” Dr. Clarke added. The restructuring exercise is intended to overhaul the system of salaries and other emoluments in the public service, to make it more equitable. Dr. Clarke reiterated that the new structure comprises 16 pay scales in the core civil service instead of 325. He pointed out that “we have three additional scales for teachers, healthcare practitioners and security forces that are aligned to the core scale”. “This represents over three years of work, and that work, no doubt, continues. We thank our partners in the unions, the staff associations and bargaining groups for working with the Government of Jamaica, and for agreeing to that four-year wage deal from 2017 to 2021 that created the space to make the work required for this reform possible,” the Minister added. Dr. Clarke informed that with the compensation agreement signings, the fiscal risks are gradually receding. He also told the House that a project is under way to address the payroll system of Government. “The payroll system… is decentralised and highly fragmented. There is a project under way, as part of our transformation exercise is to address this, and the Ministry of Finance is only a part of the payment exercise,” the Minister said. During his opening Budget Debate presentation on March 7, Dr. Clarke again urged public-sector groups not yet signing the new compensation scheme to come forward to settle wage agreements. “I stood here two weeks ago and appealed to the men and women in occupational groups who had not yet signed, and I want to thank all members of the public service who responded positively and decisively,” he said. These include, among others, rank-and-file police officers, District Constables and members of the Police Officers’ Association, doctors and teachers. “Over 86 per cent of rank-and-file police officers who voted cast their vote in support of the public-sector restructuring reform, and I want to say thanks. We are working on finalising that agreement and once it is finalised and signed, but only after that, $10.2 billion will be paid out of the Consolidated Fund by the end of March. “I acknowledge our district constables and pay tribute to them and thank them for coming on board with this reform. Earlier this morning, just before coming to Parliament, I signed the [Memorandum of Understanding]… with the United District Constables Association,” Dr. Clarke informed. He said while retroactive payments will be paid out this month, these “may not come on the 25th, because a lot of agreements were just signed”. “Some of them are being signed today [March 21st] but we will endeavour [to ensure] that the funds will leave the Consolidated Fund by the end of the month,” Dr. Clarke stated. Source: https://jis.gov.jm/finance-minister-thanks-civil-servants-accepting-restructured-compensation-package/

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Gov’t Employees Benefit from Financial Literacy Seminar

Damian Graham — Fri, 16 Dec 2022 14:12:17 +0000

The Ministry of Finance and the Public Service, in conjunction with the Transformation Implementation Unit, on Wednesday (December 14) hosted a financial literacy seminar for government workers. The forum, which was held at The Ambassadors in Kingston, was aimed at enhancing public-sector employees’ knowledge of money management, wealth creation, and retirement planning, which were among the topics covered. Portfolio Minister, Dr. the Hon. Nigel Clarke, who spoke on the public-sector compensation restructuring exercise, said this will become a reality, starting next week. The Government of Jamaica is implementing a new compensation system for the civil service. It is expected that public-sector employees will receive retroactive payments and the new rates in December. “This is an ambitious exercise. We are [talking about] a compensation system that has 110,000 employees across 325 different salary grades. We can’t go forward like that, because it is way too complex for the individuals and for the country,” Dr. Clarke said. “So, this reform takes 325 grades and translates them into 16 salary bands. Now, that was never going to be easy, and it has taken a lot of energy, work, determination, optimism, and confidence in the Jamaican people to even begin to take on this challenge. But we take it on with your interest in mind,” he added. The effective date for the new compensation system is April 1, 2022. Dr. Clarke said the Government “was not taking anything away from anyone”. “What we are actually doing is giving public servants an additional amount in December that represents the difference between your new pay and your old pay for the months of April to November,” he stated. The Minister noted that the adjustments for some persons who are at the bottom of the salary scale will be significant, relative to current income. “In some cases, persons who report up will receive an arrears amount that is in excess of the top-up amount of somebody who they may be junior to. Now that ought not to breed discontent; I would encourage an attitude where you are happy for them. What it means is that for a long time, they have been in a disadvantageous position, and this is the moment when we make it right by them,” Dr. Clarke said. A 2012 Baseline Study on Financial Literacy in Jamaica revealed that Jamaicans’ knowledge is average, whereas financial behaviour is relatively good. Although entities such as the Bank of Jamaica, the Financial Services Commission and the Ministry have been championing financial literacy, it is recognised that more needs to be done in training persons of all ages and strata of society to better manage their money and plan their financial affairs. Source: https://jis.gov.jm/govt-employees-benefit-from-financial-literacy-seminar/

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GOJ Implements New Public Sector Compensation System

Damian Graham — Fri, 18 Nov 2022 14:38:27 +0000

Some public sector workers are set to receive new rates and retroactive payments as the Government of Jamaica begins the implementation of the new compensation system. Seventeen unions have signed with the Ministry of Finance and the Public Service (MOFPS) on the new compensation package including, the Nurses Association of Jamaica, Jamaica Civil Service Association, the Jamaica Workers Union, the Union of Schools Agricultural and Allied Workers Union, the Union of Public and Private Employees, the Jamaica Association of Local Government Officers, the Jamaica Midwives Association, the Council of Paramedics and the Bustamante Industrial Trade Union. These unions represent approximately 60,000 employees. Dr Nigel Clarke, Minister of Finance and the Public Service, says this is a momentous development given the four years of work that have gone into designing the new compensation system and the extensive period of consultation with unions. “We set out on this journey in 2018 and we would not be here without the partnership with the unions who agreed to a four-year wage deal that allowed this work to commence. We engaged consultants and shared the results with our union partners. Since that time we have held several rounds of consultations and I am pleased that we have been able to achieve consensus even as the Ministry continues to work through some finer points with the unions and staff associations,” the Minister said Minister Clarke added “This is a watershed moment as the Government seeks to transform the public sector into a modern public service.” He reiterated that the current compensation system does not serve the needs of the public sector or the country as a whole. “I commend the unions for the level of commitment they demonstrated throughout the process. I want to encourage those that are still reviewing the Government’s proposal to complete that review in short order. Time is of the essence,” Dr Clarke said. Minister Clarke noted that it is the Government’s commitment to implement a public sector compensation that is fair, transparent and sustainable while emphasizing that every public sector worker will be better off financially, when the new system is implemented. The new compensation system will be implemented over three years with an effective date of 1 April 2022 and will cost approximately $120B over the period.

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Consultations with Unions on New Public Sector Compensation System at an Advanced Stage – Finance Minister

Transformation Implementation Unit — Tue, 05 Jul 2022 14:47:28 +0000

Minister of Finance and the Public Service, Dr Nigel Clarke has disclosed that discussions on the new public sector compensation system with unions and staff associations representing central government employees are at an advanced stage. He made the disclosure following a recent meeting with the Jamaica Confederation of Trade Unions. Minister Clarke observed that “second round consultations, which incorporate the feedback of unions, bargaining groups and professional associations are now advanced, but discussion is still underway with a number of unions and associations. It is important that this consensus building process is completed prior to the start of the implementation of public sector compensation restructuring.” The Finance Minister noted that the Government had expressed the desire to begin implementation of the new compensation system in July 2022 but that desire “must be subordinated to the greater objective of achieving consensus, as far as possible.” He reiterated that the Government has pursued a consultative approach to the introduction of the new compensation system for public sector workers and has thus far met with all public sector unions, bargaining groups and professional associations which represent central government employees. The new compensation system for the public sector is being implemented effective 1 April 2022. It will address longstanding issues with public sector compensation such as inequity, complexity and lack of transparency. The current compensation system has 325 salary scales and approximately 185 allowances.

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Pay-for-Performance to be Introduced in the Public Sector – Finance Minister

Transformation Implementation Unit — Tue, 10 Dec 2019 21:21:47 +0000

Permanent Secretaries have agreed to the introduction of performance pay as part of their compensation package. This was announced earlier today (04 December) by Minister of Finance and the Public Service, Dr Nigel Clarke. According to Minister Clarke, this is a positive development. “Permanent secretaries being willing to embrace the concept of performance pay definitely means that those are permanent secretaries who have Jamaica’s best interest at heart and are willing to put their compensation on the line for performance,” Minister Clarke emphasised. The Finance Minister was speaking at the signing ceremony between the Government of Jamaica and international consulting firm Ernst and Young for two contracts for public sector compensation review and the introduction of shared corporate services in some areas of government operations. For the compensation review project, Minister Clarke noted that the public sector is in need of an equitable and transparent pay and job evaluation system. He emphasised that there are approximately 325 separate salary scales in central government and over 185 allowances. Under the contract, valued at US$1.6m, the consultants will among other things, undertake a review of GOJ compensation system, which should also indicate the current positioning of GOJ within the Jamaican market; develop a proposal for a pay-for-performance and reward framework; develop a compensation philosophy and policy; and cost and indicate the financial impact of the new compensation structure. The consultants will also develop a single job evaluation tool for the public sector. The contract for the introduction of Shared Corporate Services is valued at US$5.4m and will enable the implementation of shared services in seven (7) areas of operations namely – Human Resource Management, Finance and Accounts, Procurement, Asset Management, Information and Communication Technology, Internal Audit, Public Relations and Communication. Both projects will commence in January 2020. The shared corporate services project will last for 24 months while compensation review project will be completed in 18 months.

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Cabinet Secretary Optimistic About Outcomes of PSTP

Transformation Implementation Unit — Wed, 05 Jun 2019 16:46:35 +0000

Cabinet Secretary, Ambassador Douglas Saunders, is optimistic about the outcomes anticipated under the Public Sector Transformation Programme (PSTP), now underway. Ambassador Saunders, who is Head of the Civil Service, believes the attendant engagements being embarked on by the Administration, through the Transformation Implementation Unit (TIU), will yield significant and tangible results that should redound to Jamaica’s benefit over the medium to long term. His view is based on targeted activities under: public sector efficiency and information and communications technology (ICT); the introduction of shared corporate services; rationalisation of public bodies; human resource management transformation; and wage bill management. Ambassador Saunders was speaking at a recent Programme update provided by Finance and Public Service Minister, Dr. the Hon. Nigel Clarke. The Cabinet Secretary, who has been serving in his current post since 2008, has been a career civil servant for some 40 years, during which he has held various public service positions in Jamaica and overseas. This experience, he noted, has endowed him with the knowledge of, and exposure to successive Administrations’ public sector transformation efforts over the years. “I think it is important to make the distinction between those earlier efforts and the one we are now embarked on. Those previous efforts… in most cases, were the result of solutions and prescriptions coming from outside the country,” the Cabinet Secretary pointed out. He said the current phase is predicated on the adoption of a locally developed Master Rationalisation Plan in 2010 by the Administration of the day. “That framework is, of course, the one that continues to guide these efforts, which have, in a sense, been reinvigorated in more recent years,” he added. Ambassador Saunders said a close examination of the public sector shows it is, to some extent, constrained by limitations on the appropriate supporting technological and physical infrastructure, among other resources, albeit being staffed by highly skilled and qualified officers. He noted that resource constraints are particularly challenging, in light of the number of public bodies in operation vis-à-vis other jurisdictions, such as Singapore, with which Jamaica’s development is often compared. “I am told that Singapore has approximately 50 public bodies… [while] we have over 200 various State entities. There is, consequently, overlapping [of functions]. What has happened over the years is we have created new bodies without taking a look at what existed and what needed, perhaps, to be dispensed with or upgraded into institutions that can meet new requirements,” he said. This, the Cabinet Secretary argued, “is not an efficient use of resources,” adding that, “I think it’s clear that there is room for significant rationalisation”. He explained that all stakeholders must bear in mind that the main objective of the exercise relates to improving the efficiency and effectiveness of the delivery of public services. Meanwhile, Ambassador Saunders said he is pleased with some of the significant advances and improvements over the last nine years. Arguing that this period may be deemed “a long time” and that many persons “are, perhaps, impatient for faster progress,” he emphasised that Jamaicans must remind themselves that the race is not for the swift, but for those who are able to endure the longest. “So, it is better to pause, reflect and ensure we are taking the correct steps, suitable for our requirements and circumstances,” Ambassador Saunders said. The Cabinet Secretary said he remains “quite confident” about the projected outcomes, and that members of the public sector will support the activities involved in the process. For his part, Dr. Clarke indicated that the transformation programme will facilitate the achievement of efficiency gains that are scalable and meaningful, thereby channelling focus on fixing some key areas of government operations. These, he reiterates, are outdated operating processes, inadequate use of ICT, inefficiencies and waste in operations, high transaction costs and times, inadequate human resource management practices, and a cumbersome compensation structure. Dr. Clarke reaffirmed the Administration’s commitment to create a modern public service that is fair, values people, and consistently delivers high-quality services. Source: https://jis.gov.jm/features/cabinet-secretary-optimistic-about-outcomes-of-pstp/ Author: DOUGLAS MCINTOSH

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