The Trinidadian government confronts a substantial financial challenge as it seeks to secure $3.8 billion to fulfill back payment obligations to public servants following a recently concluded wage agreement. Minister of Planning, Economic Affairs and Development Dr. Kennedy Swaratsingh has indicated that funding details will emerge “soon enough,” offering limited commentary while entering the Red House on November 28.
The breakthrough occurred on November 27 when the Public Services Association (PSA) and the Chief Personnel Officer finalized an agreement granting union members a ten percent salary increase—a commitment originally made by the United National Congress during April’s general election campaign. The compensation package allocates one percent for each year between 2014 and 2018, plus five percent for 2019, collectively adding approximately $420 million to recurrent annual expenditures.
Chief Personnel Officer Dr. Daryl Dindial confirmed plans to formalize the agreement through a memorandum of understanding with PSA representatives on December 1, preceding Cabinet submission for ratification. The Cabinet Secretary has reportedly expedited the process, allowing for consideration via an ad hoc note during the December 4 session.
Opposition figures expressed cautious optimism alongside fiscal concerns. Chief Whip Marvin Gonzales acknowledged satisfaction with the resolution while emphasizing the need for transparency regarding funding mechanisms. Former Finance Minister Colm Imbert raised alarms about potential domino effects, projecting that similar settlements across public sector unions could escalate liabilities to approximately $20 billion in back pay and $2 billion in additional annual wage expenditures.
Minister in the Ministry of Public Utilities Clyde Elder cautioned against renegotiations, stating that unions which previously accepted four percent agreements should not expect retrospective adjustments based on the PSA outcome. Elder highlighted the PSA’s particular struggles during previous administrations and noted that payment scheduling would fall under Finance Minister Davendranath Tancoo’s purview.