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

Labour consultant Austin Gamey has urged Organised Labour to pursue a fair adjustment in the 2027 base pay negotiations, cautioning that excessively high expectations could delay an agreement with government.

He said the proposed increase should be guided by economic data, including previous inflation projections, actual inflation figures and current forecasts, rather than perceptions about the cost of living.

Speaking in an interview on Joy FM’s Newsnight, Mr Gamey said labour was justified in seeking an adjustment but needed to ensure its expectations reflected prevailing economic conditions.

“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 said.

Mr Gamey explained that Organised Labour should first establish the extent to which workers’ purchasing power needed to be restored before determining any additional adjustment to cushion them against rising living costs.

He added that workers’ productivity and the country’s economic performance should also inform the negotiations.

According to him, pushing for an excessively high increase could create further inflationary pressures and undermine 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 said.

Mr Gamey’s comments come as government and Organised Labour prepare to negotiate the 2027 base pay, with the current agreement reflecting a nine per cent increase across the Single Spine Salary Structure for 2026.

Organised Labour has maintained that slowing inflation has not translated into lower market prices or restored workers’ purchasing power, and intends to make a strong case for a higher adjustment.

However, Mr Gamey questioned what he described as an overemphasis on the high cost of living, arguing that prices of some commodities, including tomatoes and ginger, had begun to decline.

He urged stakeholders to rely on economic data in assessing price movements rather than generalising about the cost of living.

On the possibility of a deadlock before the 2027 Budget is presented, Mr Gamey said the parties should resort to established dispute-resolution mechanisms rather than allow negotiations to stall.

He suggested mediation through the National Labour Commission or an alternative dispute resolution centre to help government and organised labour reach an agreement.

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