The Trinidad and Tobago government confronts a significant fiscal challenge as it seeks sources for $3.8 billion required to fulfill back pay obligations to public servants. This financial commitment follows the recent settlement between the Public Services Association (PSA) and the Chief Personnel Officer (CPO) regarding a ten percent salary increase promised during the April general election campaign.
Dr. Kennedy Swaratsingh, Minister of Planning, Economic Affairs and Development, indicated that funding details would emerge “soon enough” when briefly addressing reporters outside the Red House on November 28. The agreement, reached on November 27, structures the increase across a five-year period with one percent annually from 2014 to 2018 and five percent in 2019.
The settlement is projected to increase recurrent government expenditure by $420 million annually. CPO Dr. Daryl Dindial confirmed plans to formalize the agreement through a memorandum of understanding with PSA representatives on December 1, followed by expedited Cabinet ratification potentially as early as December 4.
Opposition Chief Whip Marvin Gonzales expressed cautious optimism about the settlement while emphasizing the need for transparency regarding funding mechanisms. Meanwhile, former finance minister Colm Imbert raised concerns about potential ripple effects, warning that similar demands from other unions could escalate the state’s financial burden to approximately $20 billion in back pay and $2 billion in additional annual expenditure.
Minister in the Ministry of Public Utilities Clyde Elder cautioned against renegotiation attempts from other unions, noting that organizations that previously accepted four percent settlements should not expect retroactive adjustments based on the PSA’s outcome. Elder highlighted the PSA’s particular struggles during previous administrations and deferred payment timing decisions to Finance Minister Davendranath Tancoo.