Labour consultant Austin Gamey warned that Organised Labour’s expectations for the 2027 base pay adjustment must be grounded in economic data to avoid stoking inflation. Speaking on Joy FM’s Newsnight on October 15, he cautioned that pushing for an excessively high increase could delay negotiations with government and worsen inflationary pressures.
The current agreement for 2026 sets a nine per cent increase across the Single Spine Salary Structure. As government and labour prepare to negotiate for 2027, Organised Labour insists that despite slowing inflation, market prices remain high and workers’ purchasing power has yet to recover. They expect a higher adjustment.
Gamey agreed that an adjustment was justified but urged caution. “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.
He advised that labour should first measure how much purchasing power had eroded before adding any extra cushion to offset living costs. This assessment, he said, should also consider workers’ productivity and the country’s broader economic performance.
Gamey questioned the emphasis on the cost of living, noting that prices of some staples, such as tomatoes and ginger, had recently fallen. “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.
He urged both sides to avoid allowing negotiations to stall ahead of the 2027 Budget presentation. In case of deadlock, he recommended mediation through the National Labour Commission or an alternative dispute resolution centre.
The warnings come amid rising concerns that wage demands not backed by economic realities may backfire. Labour’s argument hinges on the claim that inflation relief has not translated into stable market prices or restored workers’ real incomes. Government officials have not publicly responded to the latest calls for adjustment.
Gamey’s intervention focuses attention on the challenge of balancing workers’ needs with economic constraints. He pointed to previous inflation projections, actual inflation outcomes, and current forecasts as the proper basis for negotiation.
The 2027 base pay talks will test whether Organised Labour and government can reach an agreement without triggering further inflation or protracted disputes. Gamey’s call for data-driven demands and mediation offers a framework for managing the talks amid competing pressures.
According to Joy Online.
