Long-running negotiations over years of unpaid salary arrears for public sector workers and retirees in Trinidad and Tobago have entered a new phase, with the country’s leading public service union rejecting a revised government offer and preparing to table a fresh counter-proposal this week.
The Public Services Association (PSA), which represents employees across the Civil Service, Statutory Authorities and the Tobago House of Assembly, has been negotiating backlogged salary adjustments for two multi-year periods: 2014 through 2016, and 2017 through 2019. In a major breakthrough for workers, the union secured a 10% total salary increase by December 2025, alongside a landmark consolidation of the Cost of Living Allowance (COLA) and back-adjusted payments owed to retirees. In its official bulletin to members dated May 23, 2026, PSA President Felisha Thomas framed this earlier agreement as a critical win, noting it represented a stark improvement over the previous administration’s offer of just 4% total increase with no COLA consolidation, delivering tangible financial gains for working households across the public sector.
The current dispute centers on the payment structure for the accumulated arrears, which the government values at an estimated $3.8 billion. In January 2026, the Chief Personnel Officer (CPO), the government’s lead negotiator for public sector pay, put forward an initial proposal: 40% of arrears paid in cash split across three fiscal years, with the remaining 60% issued through non-cash arrangements. The non-cash options included offsets against existing mortgage or rental debts owed to the state-run Housing Development Corporation and Trinidad and Tobago Mortgage Bank, settlement of outstanding personal tax bills, $3,500-worth of executive medical coverage, tuition fee offsets for state-owned higher education institutions, tax exemptions for new and roll-on/roll-off vehicle purchases, and conversion of cash entitlements into additional paid leave. The PSA rejected this initial offer, and put forward an 80% cash counter-proposal at the time, with the remaining 20% held as deferred payment via interest-bearing government bonds. The union also added supplementary demands including full settlement of outstanding debts to public sector medical plans, priority access to state housing, and expanded access to residential and agricultural land across both Trinidad and Tobago.
During a negotiation session held the Friday before the bulletin’s release, CPO Dr. Daryl Dindial resubmitted a proposal substantially identical to the January framework, adding only a new carveout for retirees: only those with arrears accumulated through 2018 would receive full cash payment, while all later arrears for retirees would be issued via non-cash arrangements. The PSA rejected this revised offer immediately. Union negotiators have continued informal talks with the CPO, floating a range of alternative flexible arrangements, including allowing workers to apply arrears toward existing mortgage obligations, convert cash to extra leave, receive temporary income tax relief, access supermarket and fuel credits, or put arrears toward future pension entitlements.
Throughout the talks, the PSA has held firm on two core demands: all retirees must receive 100% of their outstanding arrears as full cash payment, and all cash disbursements must be completed no later than March 31, 2027. On Monday, May 25, 2026, the union will submit a formal revised counter-proposal to the CPO, calling for a new structure of 60% of arrears paid in immediate cash, and 40% held as deferred cash, backed by equity stakes in state-owned publicly traded assets on acceptable terms.
In her message to members, President Thomas reaffirmed the union’s commitment to securing the best possible outcome, recalling the organization’s earlier work to force a better deal than the previous administration’s “shameless and disrespectful 4%” offer, and to protect the COLA consolidation the union won. On the government side, CPO Dr. Dindial has characterized the original 40% cash / 60% non-cash proposal as the administration’s “best and final offer,” and gave the PSA a four-week window to respond to the terms.









