Senior Multimedia Reporter
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A fresh dispute has erupted between the Public Services Association (PSA) and Chief Personnel Officer (CPO) Dr Daryl Dindial—despite both sides signing off on a ten per cent wage increase for public servants on Tuesday.
At the centre of the dispute is how the estimated $3.8 billion in backpay will be delivered to over 25,000 PSA members.
Guardian Media understands that while an advance payment will be issued in cash on or before December 23, the remainder of the backpay may be offered through non-cash options.
PSA president Felisha Thomas has publicly accused the CPO of blocking the payments on social media, posting “Chief Personnel Obstructionist.” However, Dindial has pushed back, saying the PSA’s interpretation of the agreement does not reflect the Government’s position and that non-cash options were always part of the discussions - an arrangement which Government also seems in alignment with
Dindial said: “The CPO, during these negotiations, has reflected the minister’s directives and has maintained that non-cash items must form part of the discussion.”
In terms of cash settlements, Dindial said “all discussions thus far have been specifically to the advance payment.”
“I am clear, therefore, that both Minister and I have been consistent. I cannot be held responsible for anyone’s interpretation otherwise, and I prefer not to comment on future negotiations at this point. I wish to use this opportunity to advise public commentators to be circumspect in their public utterances. We have already seen instances where members of the public reacted to public utterances with threats of violence against public officials, including myself.”
The CPO noted that the negotiations had reflected the minister’s directives and has maintained that non-cash items must form part of the discussion.
Attempts to contact PSA president Felisha Thomas for further comment proved futile.
Finance Minister Dave Tancoo, when contacted yesterday, also confirmed that while the advance payment will be in cash, the union may have to consider non-cash arrangements for the remainder of the outstanding arrears.
He said the process of accessing the funds is underway and that he will provide clarification “once completed.”
Minister Tancoo is expected to reveal next week how the Government intends to finance the estimated $4.2 billion settlement, which includes $3.8 billion backpay and $420 million as a recurrent annual cost.
Past wage settlements — such as the 2011–2013 14 per cent increase — resulted in significant backpay obligations, with noticeable impacts on fiscal space and budget priorities.
The ten per cent wage increase fulfilled a campaign promise first made by the Government during the last General Election campaign, following more than a decade without any movement on salaries for the estimated 25,000 public servants represented by the PSA.
Workers have been waiting for an adjustment since the last negotiated period ended in 2013, with no new increases agreed upon for the 2014-2019 cycle. This left public servants without a salary revision for more than ten years, even as negotiations repeatedly stalled and the cost of living rose.
A Government source yesterday told Guardian Media that the cash advance will be about $500 million, which represents just over 13 per cent of the projected $3.8 billion payout.
