The Public Services Association (PSA) has rejected what Chief Personnel Officer Ret’d Commander Dr Daryl Dindial described as the Government’s “best and final offer” to settle outstanding public sector arrears and is instead proposing more cash payments and full cash settlements for retirees.
The negotiations cover the period 2014 to 2016 and 2017 to 2019.
In a message to members yesterday, PSA president Felisha Thomas said the association rejected both an initial proposal made on January 30 and a revised offer presented during discussions last Friday.
According to the PSA, the original proposal included 40 per cent cash, paid over three fiscal periods, and 60 per cent non-cash benefits.
Those non-cash options included offsets for state mortgage and rental obligations through the Housing Development Corporation and the Trinidad and Tobago Mortgage Bank, outstanding tax liabilities, tuition fees at state institutions, medical coverage, tax concessions on new and roll-on/roll-off vehicles, and converting cash entitlements into leave.
The PSA said it rejected that proposal and countered with an offer of 80 per cent cash and 20 per cent deferred cash through interest-bearing bonds.
The association also proposed settling outstanding medical plan debt, preferential access to HDC housing, and access to residential and agricultural lands across Trinidad and Tobago.
The union said the revised proposal presented yesterday largely remained the same but included a provision for retirees to receive full cash arrears only up to 2018, with subsequent payments through non-cash arrangements.
The PSA said it rejected that proposal and maintained that all retirees should receive their arrears entirely in cash.
The association said it also proposed using arrears toward mortgage obligations while freezing monthly mortgage salary deductions for a specified period.
Other proposals included converting cash entitlements into leave, relief from monthly income tax payments, supermarket and fuel credit facilities, access to land, and applying arrears toward pension entitlements.
The PSA said cash payments should be completed by March 31, 2027.
In a release Friday, the CPO said the Government’s offer remains 40 per cent cash and 60 per cent non-cash benefits, with an estimated settlement value of $3.8 billion.
The CPO also said retirees would receive their arrears for the period 2014 to 2018 in cash, while payments would be made over two to three financial years.
Dindial said the State faced macroeconomic challenges and gave the PSA four weeks to communicate its position.
The union said it will submit revised proposals in writing on Monday, including a settlement structure of 60 per cent cash and 40 per cent deferred cash, alongside equity in state-owned publicly traded assets as a deferred payment option.
