I first heard about the deal on the radio. I think it was a JIS GOJ broadcast, then I read it online from the article listed below.
PSOJ launches public sector discount programme
You will have to click the URL link above to view all the smiling Negroes.
Now having heard the PSOJ president on a radio program. He was very honest in stating not in his own words; that it is not like its all angels here. Private sector will benefit also.
Basically what it appears at a glance is a win-win deal for all. But not so fast.
But truth be told this entire move in my opinion was totally ILLEGAL. Why?
Can you imagine Amazon, or Mastercard, or Visa, or Walmart Card asking the US Federal Government for their entire contact database for all federal employees so they can issue them a rewards card via some private sector lobby group?
If this does not reflect bordering Cronyism and Nepotism by approving such a deal. Then it definitely shows that the minister along with the Jamaica Confederation of Trade Unions posses very low business IQ.
A BRILLIANT / TALENTED CEO IS NOT TO BLAME
What I see is a very creative, talented, & brilliant CEO of a company such as ePayment Group seeking to maximize avenues available to him without doing anything unethical or illegal, from my standpoint.
As business is business, and what is public sector rules and regulation is for public sector to monitor and enforce. As such I hold the minister and the Jamaica Confederation of Trade Unions 100% responsible for such a transaction.
However they may redeem themselves if such a transaction was now made available to all qualified businesses.
The only problem they may and should have faced is. Where were the provisions for public sector workers to opt in or opt out of such deal before and after the process began?
THEY SHOULD KNOW WHAT THEIR ACTIONS IMPLY FOR THE MARKET
For starters why should one or quite possible two companies have access to 120,000 public sector contact information to offer commercial product(s)?
Is Horace Dalley along with the the Jamaica Confederation of Trade Unions now going to allow the same for other companies with vastly superior offers?
It is alleged that rewards may range between 3% to 5%. among the following participating stores;
ATL Automotive, Altamont Court Hotel, University College of the Caribbean, Appliance Traders Limited, Michi Super Centre, Pepsi, Singer Jamaica, GasPro, and Alternative Power Sources.
Basically what this deal technically does is to create a preferred & exclusive Groupon website with a rewards with the ability to add other merchants who wish to join.
Now think about it. For a public sector worker to obtain $1,500 per month if using the high end of the scale of 5% rewards/savings per purchase from participating store.
That worker will have to spend among the current participating stores a total of $30,000 per month. Frankly this is not what I call savings.
It is highly unlikely that there would be an average an across the board, or a cumulative 10% savings.
So assuming that one shopped at one or more of the participating locations. And accrued 3% here, a 5% there to arrive at a total of 10% or even 30%.
- How many purchases would that arrive to and at what real cost?
- Would the user of this card then amassing a whopping 30% rewards be able to enjoy that in another store?
- How would the store operator handle such a high percentage mark down?
- Is there a limit to the accrued rewards savings and time period to use such savings?
Who really got a sweet deal? Is the reward cards value equal to the value of the 120,000 database to a private company where market demographics and prospective consumer/ client personal information is like solid gold?
What this also does is put two companies in direct market monopoly control of the most stable employees in Jamaica. The main player being the ePayment Group in respect to processing, and the other in my opinion Norbrook Package Company (NPC). Why?
In 2013 the press covered that Norbrook Package Company (NPC) had launched a service called ValuPak. See the press release below.
OVER twice as many consumers respond to direct mail over other types of advertising.
That’s just one of the reasons logistics company, Norbrook Package Company (NPC) has launched ValuPak.
The operator of AirPak, Mailpac and UPS in Jamaica is leveraging its islandwide scope — an ability to reach the doorstep of over 150,000 households with up to 60 vehicles that deliver everyday — to distribute flyers and coupons of various companies in branded envelopes once per month.
“We are encouraging our advertisers to offer something different to our customer base and build that reciprocal relationship,” said Khary Robinson, managing director, NPC.
Their ads must be value-driven, and when consumers open these envelopes they must know that they are the only set of exclusive deals, he said.
What’s more, ValuPak will include a ‘must-see insert’ in the packages, which will further prompt customers to open their packages and not consider them as junk mail.
BY SHAMILLE SCOTT Business reporter email@example.com.
Now if they argue that no direct marketing will be used towards the 120,000 public sector data base of employees. How will the GOJ be able to distinguish that there was not data overlap? And if so by how much percent?
This opens a can of worms. One may argue this is a sweet deal, while another / political cultist may argue it is a sweet heart deal.
I would then recommend to Horace Dally and the Jamaica Confederation of Trade Unions, that the y do the same for all reputable companies seeking to issue rewards cards to the 120,000 public sector workers, and open up access the same way he did for the PSOJ so called program.
For starters I am aware of one company that can offer 20% per month on a prized asset on a card with superior advantages that only require $8,000 to 10,000 per month consumer spend.
Such a rewards program would see the public sector workers saving on average $362,880,000 million per year at 18% penetration rate, with said percentage the GOJ saving $2 billion per year in savings.
If it were possible to obtain full tilt or 100% penetration. We are looking at GOJ saving per year $12 billion, and public sector workers saving on average $2 billion per year.
So would that not qualify for the same sweet deal?
And to top it all off;
After all public sector workers are signed up for the programme, the PSOJ plans to sign up all Government pensioners, who will also benefit.
Source: PSOJ launches public sector discount programme
Only in Jamaica.