Organised Labour should seek fair adjustment, not excessive pay rise – Labour consultant

Labour consultant Austin Gamey has advised Organised Labour to seek a fair adjustment during the 2027 base pay negotiations, warning that overly ambitious demands could hinder an agreement with the government. In an interview on Joy FM’s Newsnight on Thursday, October 15, Mr Gamey emphasized that the proposed wage increase should be based on economic data, such as previous inflation projections, actual inflation figures, and current forecasts, rather than perceptions about the cost of living.

"I wouldn’t like to use the word demand, for an adjustment that is commensurate with the situation on our hands. But it has to be based upon data," he stated.

Gamey suggested that Organised Labour should first determine the extent to which workers' purchasing power needed to be restored before deciding on additional adjustments to offset rising living costs. He also highlighted that workers' productivity and the country's economic performance should influence the negotiations. According to him, requesting an excessively high increase could lead to further inflationary pressures and diminish the intended benefits of higher wages.

"The macro indicators are quite reasonable, and therefore you can’t go too high, otherwise you’re rather creating further inflation in the system, and it’s your own making," he explained.

The dialogue between government and Organised Labour is ongoing as they prepare for the 2027 base pay negotiations. The current agreement includes a nine per cent increase across the Single Spine Salary Structure for 2026. Organised Labour contends that despite slowing inflation, it has not resulted in lower market prices or restored workers' purchasing power, and intends to argue for a significant adjustment.

However, Gamey questioned the focus on the high cost of living, pointing out that prices of certain items, such as tomatoes and ginger, have started to decline. He urged stakeholders to rely on economic data to assess price movements rather than generalize about the cost of living.

Regarding the potential for a deadlock before the 2027 Budget is presented, Gamey suggested that the parties should utilize established dispute-resolution mechanisms instead of allowing negotiations to stall. He proposed mediation through the National Labour Commission or an alternative dispute resolution center to assist government and organised labour in reaching a resolution.