Wages must be more flexible and linked less to the seniority of work ers and

Wages must be more flexible and linked less to the

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Wages must be more flexible, and linked less to the seniority of work- ers and more to productivity and performance - especially in the pub- lic sector - and profits. This requires the creation of a variable component 36 Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap). to wages and their negotiations par- ticularly for the public sector. Workers must also adapt and moderate their expec- tations and seek to incur expenditures in a sustain- able manner. We must also acknowledge the rising costs of retirement and health care and develop more innovative ways of contributing to and trans- ferring benefits across circumstances and profes- sions. We should pursue a level of price and wage restraint until the economy has fully recovered from the current commodity crisis. While we commit to the decent work agenda, we must not inadvertently force companies to retrench and relocate by pushing up costs exces- sively and eroding overall compet- itiveness. At the same time prices should not rise excessively and we should seek to improve quality and avoid price gouging. The recently established National Tripartite Advi- sory Council (NTAC) would assist in guiding the annual wage adjustment process and ensuring that the wage level is internationally competitive by providing timely advice and guidelines on labour related issues. It should also ensure that work- ers receive a fair share of the rewards and not be penalised unfairly in times of decline. The NTAC will also assist in the reform of key pieces of legislation that impact worker's rights and compensation and support the measurement of productivity. Based on the previous discourse, the following guidelines for incomes policy are advanced: Wage and salary increases must continue to be determined by the collective bargaining pro- cess; Wages must move to a productivity based sys- tem that takes account of global trends particu- larly as they relate to competitiveness; Wages must rise through higher productivity and ensure that wages increases lag behind 79-80 V I S I O N 2 0 3 0 N AT I O N A L D E V E L O P M E N T S T R AT E GY 2 0 1 6 - 2 0 3 0 Making the Necessary Adjustments
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productivity increases at all levels of the organ- isation; and Wages must include a variable components for all levels of employees, with higher variable components for management staff, particularly top management. GUIDELINES FOR MONETARY POLICY The conduct of monetary and exchange policy falls exclusively under the purview of the Central Bank of Trinidad and Tobago (CBTT). The Cen- tral Bank’s monetary policy framework has as its primary objectives, the maintenance of: (i) a low and stable rate of inflation; (ii) an orderly foreign exchange market; and (iii) an adequate level of foreign exchange reserves. Overall, the goal is to ensure financial stability and preserve confidence
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