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

Organized Labour consultant Austin Gamey has advised the labor movement to seek a fair adjustment in the upcoming 2027 base pay negotiations, cautioning against overly ambitious demands that could impede an agreement with the government. Speaking on Joy FM’s Newsnight, Gamey emphasized that the proposed increase should be grounded in economic indicators, such as historical inflation trends, actual inflation data, and current projections, rather than perceptions of the cost of living.

He stressed that while labor is entitled to seek an adjustment, it must ensure its expectations align with current economic realities. "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," Gamey advised.

Gamey suggested that the first step for Organized Labour should be to determine the necessary restoration of workers' purchasing power before deciding on any additional compensation to mitigate the impact of rising living costs. He further argued that factors such as workers' productivity and the nation's economic performance should also be considered in the negotiations.

According to Gamey, demanding an excessively high pay rise could exacerbate 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 warned.

The comments come as government and labor organizations gear up for the 2027 base pay negotiations. The existing agreement includes a nine percent increase across the Single Spine Salary Structure for 2026. Labor has insisted that despite slowing inflation, it has not resulted in reduced market prices or restored workers' purchasing power, and intends to argue for a higher adjustment.

However, Gamey questioned the focus on the high cost of living, noting that prices of some goods, like tomatoes and ginger, have started to fall. He urged stakeholders to base their assessments on economic data rather than generalized statements about the cost of living. When asked about the potential for a standoff before the 2027 Budget, Gamey proposed using established dispute resolution mechanisms, such as mediation through the National Labour Commission or an alternative dispute resolution center, to facilitate a resolution between government and organized labor.