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Chief Personnel Officer Dr Daryl Dindial. - THERE appeared to be a mix-up in communication between the president of the Public Services Association (PSA) and the office of the Chief Personnel Officer (CPO), over details regarding the ten per cent wage offer and resulting back pay to be made to PSA-represented public servants as negotiations continue.
The PSA on December 2, announced that back pay for its members – determined to be $3.8 billion, will be paid on or before December 23.
However, speaking with Newsday on December 02, CPO Daryl Dindial said the back pay would not be paid in full, it will not all be in cash, and it may not be paid in a single financial year.
A circular, signed by PSA president Felisha Thomas, claimed victory for its membership, as she announced the conditions surrounding the start of negotiations over the wage increase offer.
She listed the conditions agreed upon, by the PSA and the CPO, in a memorandum of agreement (MoA) signed on December 2, which included the date at which back pay will be made. She claimed that these conditions include:
* A ten per cent wage increase
* Consolidation of COLA for both the 2014-2016 and 2017-2019 periods
* New salaries in January reflecting the ten per cent increase
* Allowances with effect from January 1, 2014
* Advance on arrears (back pay) on or before December 23.
“Your sacrifice has not been in vain,” said Thomas. “Today, we are proud to announce that your resilience has delivered meaningful results and this latest development is a testament to the power of unity and solidarity.
PSA president Felisha Thomas -
“This MoA marks a significant step forward for all public officers even as parties continue discussions on other terms and conditions of employment. It represents not only financial relief but also recognition of your hard work, dedication and commission to serving TT.”
However, in a subsequent press release, later on December 2, the Office of the CPO said: “Commander Dindial stated that he agreed to continue discussions with the PSA to determine the methods and timelines for the settlement of outstanding allowances and payment of arrears on salaries.”
The CPO’s release said Dindial described negotiations as “memorable.”
It said the signed agreement included adjustments to meal allowances, house and transfer allowances, travelling, motor vehicle loans, clothing and laundry allowances, the purchase and installation of CNG kits, the acquisition of light goods vehicles for eligible offices within the Civil Service and Statutory Authorities in accordance with the Statutory Authorities Act.
The media release did not indicate that the back pay would be paid, in full, by December 23.
Dindial: Back pay in parts
Newsday contacted Dindial seeking clarification.
He explained that the payment on December 23, will not be the full back pay worth $3.8b, but would be an “advance, flat-rate payment in lieu of arrears.”
“It is a part of the arrears, but not all of the arrears,” he said. “It is really an advance interim payment to satisfy some relief for public officers during the month of December.”
Dindial explained that instead of the entire $3.8 billion, being paid by December 23, no more than $500 million will be paid out to the roughly 80,000-strong PSA membership by Christmas. He said that figure is still subject to calculations.
He explained that the manner in which the entire $3.8 billion would be treated is still yet to be negotiated and determined.
“Government’s position is that the arrears bill cannot be paid in one fiscal year,” Dindial said.
“It has to be spread over time. These are things that are still subject to negotiations. No decision has been made as yet on the payment of the total arrears.” The CPO said negotiations on the manner in which the total arrears will be paid will begin in January.
“We need to make sure the public does not have the perception that government is going to borrow $3.8 billion to pay back pay...which some will say is reckless. The government is operating very responsibly and has provided the CPO with broad guidelines in terms of what could be negotiated with the PSA.”
Cash, non-cash payments
Dindial said, in his view, some of the payment of the back pay will have to be in cash, while the rest will be in non-cash.
“That (non-cash) will include health benefits; one of the discussions we were having involved writing-off existing debts – so for example, if you have a mortgage payment with HDC for your home, that could be dealt with.
“There is a cash flow concern and government is mindful that it has to satisfy all other requirements of the state. We want to, as best as we can, provide some relief in December, but when the overall discussions about the arrears comes around, a very responsible approach will be taken in how we minimise cash flow impact on the state.”
Commenting on the disparity in messages between the CPO and PSA president, Dindial said he could not speak for Thomas, but advised the public to visit the CPO’s website for accurate information on the progress of the wage negotiations with the PSA.
“The honourable minister of finance has reported very responsibly on this matter in the media concerning what allocations were provided for arrears and none was provided for it. So this is something that the ministry has to look at to satisfy the payment in December,” Dindial said.
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