TRINIDAD-Government hints at taking wage negotiations with public sector unions to Industrial Court

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PSA President Leroy Baptiste addressing protestors earlier this year (File Photo)

PORT OF SPAIN, Trinidad – The Trinidad and Tobago government has hinted at the possibility of allowing the salary increase negotiations with public sector wages to go to the Industrial Court, insisting that it is not in a position to offer more than the four percent wage increase.

Finance Minister Colm Imbert, delivering the TT$57.6 billion (One TT dollar=US$0.16 cents) budget to Parliament on Monday, said that no responsible government can contemplate bankrupting the entire country simply to appease a portion of the labor force.

PSA President Leroy Baptiste addressing protestors earlier this year (File Photo)

“We are firm in our view that our current offer of four percent over the period 2014-2019 for the mainstream public service, although it will be a challenge to raise the required funds, is practical and equitable. One trade union has already accepted our offer, and we hope others will soon follow suit,” he said.

The public sector unions, including the Public Service Association (PSA) and the Trinidad and Tobago Fire Service Association, say the chief personal officer (CPO), Dr. Daryl Dindial, had during the latest round of negotiations last month offered a salary increase of four percent, representing a zero, zero and two percent and a zero, zero and two percent for 2014 and 2019.

The unions had initially rejected an initial two percent offer over eight years – 2014-2021and last month, during a street demonstration, said the government’s four percent offer disrespected them as the final offer.

Imbert told legislators that the additional annual recurrent cost of the four percent offer is approximately TT$500 million and that if the wage offer is extended to the broader state sector, the additional cost will almost double to about one billion dollars annually.

“The backpay that will accrue to June 2023 from our offer for just the mainstream public service is TT$2.4 billion. This will increase to $4.6 billion when the entire state sector is included. As difficult as these amounts will be to accommodate, we will find the money and make the required payments promptly. But any more than this will wreck the economy, not only for the same public servants but for everyone else.”

Imbert said that the counter offer made by the PSA is unsustainable, noting that the union has countered with a demand for a 19 percent increase in salaries for the three-year period 2014-2016, which is only one half of the period of our offer.

“If accepted, this would cost TT$15.8 billion in arrears up to June 2023. The additional annual recurrent cost would be TT$1.8 billion. If the PSA offer were extended to the wider state sector, TT$30.3 billion in back pay would be required up to June 2023. The additional annual recurrent cost would be TT$3.4 billion.”

Imbert said that these calculations do not cater for a similar increase in the second three-year period, 2017-2019, which, if agreed to, could create a backpay requirement of TT$50 billion, equivalent to the total national expenditure in previous years.

“These are not severe counterproposals. They may sound good to encourage marches or threats, but I am confident that the leaders know the facts, the reality, and what is doable. It should be evident that demands of this nature cannot be met.

“Anyone who believes that the country can afford this level of public expenditure is simply not being realistic. I wish to make it clear that our offer of a four percent increase over the period 2014-2019 is the best we can do, and even at this level, we will have to dig deep to find the $4.6 billion in back pay

that will flow from this.”

Imbert said he wanted to confirm that the Keith Rowley government is ready to make good on its offer as soon as it accepts.

“We are prepared to raise the required funding for backpay quickly and to make these payments promptly, as well as appropriate adjustments to the budgetary appropriation to cater for the recurrent increases in salaries and wages.

“On the other hand, if trade unions choose to send these negotiations to the Industrial Court, we would ask that these matters be expedited so that we can act swiftly by the Court’s decision,” Imbert added.

The trade unions have not yet reacted to Imbert’s budget statement.

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