While the Employers' Consultative Association (ECA) is pleased with the settlement between Petrotrin and the Oilfield Workers' Trade Union (OWTU), it is concerned that the state-owned oil company may now be burdened with a higher wage bill.
In a statement yesterday, the ECA said while the announcement of a preliminary agreement has brought some level of peace, there is the matter of the impact on the financial health of the company and T&T's socio-economic situation.
"What remains clear is that the company will now be further burdened with an increased wage bill, and since this is an interim settlement, there will be on-going negotiations to arrive at a final settlement for the two negotiation periods in question," the association said.
The ECA added the proposal for funding the increase by reducing waste and improving efficiencies is a welcome initiative but those benefits will not be immediately realised based on Petrotrin president Fitzroy Harewood's admission that the company continues to take "the strategic decisions to restructure. There is therefore an immediate need to fund the next payroll, which will reflect this five per cent increase at the cost of approximately $80 million and the ECA questions from where will this money be sourced?"
The ECA said it will continue to monitor these developments and it remains optimistic about a speedy resolution as negotiations continue between Petrotrin and the OWTU.
"We encourage good sense to prevail in the national interest as we collectively endeavour to overcome our current challenges and achieve a better quality of life for all," the ECA said.