Raphael John-Lall
Despite an upcoming deficit budget and the economic challenges that the country faces, industrial relations consultant who is also a former chief labour relations officer at the Ministry of Labour Sabina Gomez believes that the Public Services Association (PSA) will receive a 10 per cent wage settlement in the next fiscal year.
While Prime Minister Kamla Persad-Bissessar has admitted that it will be another deficit budget in early October, she qualified that statement by saying that it will be a “very good budget” with elements to generate revenue.
In an interview with the Business Guardian, Gomez who has had decades of experience in industrial relations and dealing with trade unions spoke about possible wage increases and other labour-related topics that will arise and should be addressed in the upcoming budget and in the current fiscal year.
“There are the economic realities. This is not a one off payment. It’s a recurring cost. They have to ensure that they identify where the money will be coming from. No one wants structural adjustment policies because that has serious consequence for the public service. Yes, I believe the PSA will get its 10 percent as promised,” she said.
Two weeks ago, Finance Minister Davendranath Tancoo announced the Government’s plan to begin the proposed public sector wage negotiations at ten per cent in fiscal 2026.
The United National Congress (UNC), as part of its campaign for the 2025 General Elections, promised a baseline 10 per cent salary increase for public servants. This pledge was a key part of their “workers’ agenda” and was supported by the PSA and other unions.
The negotiating periods are 2014-2016 and 2017-2019 and the PSA President Felisha Thomas has said that they rejected the then offers of 4 per cent.
Another issue that Gomez thinks needs to be addressed is updating outdated labour laws.
“I think a critical issue is the amendment of key pieces of legislations that are archaic and no longer meet the needs of society. For example, the Industrial Relations Act Chapter 88:01, the Truck Act Chapter 88:07 (1920) and the Retrenchment and Severance Benefit Act Chapter 88:13 (1985) all need to be revised because employment dynamics and relationships have evolved. Businesses are in survival mode and some are prepared to forego minimum standards to be profitable. A robust inspection service is critical in the enforcement of minimum terms and conditions.”
Gomez said there is an urgent need to deal with productivity which drives efficiency in any economy.
“The issue of productivity will be at the forefront within the public sector. How many workers work eight hours a day? A worker coming from south and central Trinidad to Port-of -Spain must leave home by 5:00 am and by 2:00 pm those workers are leaving the job to beat the traffic. So, the traffic situation must be addressed either through staggered working hours or a revisit of the remote work proposal. We have to be innovative to succeed as a nation.”
She also advocated legislation that would speed up negotiations that have left workers suffering after 10 years of their salaries not being adjusted.
“This must never happen again and the Industrial Relations Act (IRA) needs to be strengthened to make it an industrial relations offence if parties fail to initiate proceedings by submitting proposals at least six months prior to the expiration of the existing collective agreement. The Ministry of Labour Conciliation Division can play a vital role in managing this process to ensure an efficient and effective process.”
Labour’s wish list
Lecturer of Labour Studies at the Cipriani College of Labour and Co-operative Studies, Trevor Johnson who is also assistant general secretary of the Joint Trade Union Movement (JTUM) forwarded to the Sunday Business Guardian a wish list for the budget. The list was compiled from his interaction with JTUM’s executive.
Some of labour’s expectations include:
* Commence discussions immediately with the respective trade unions with a view to settlement of all outstanding negotiations in the public and state sector up to 2025;
* Labour legislation: Immediate action on bringing key outdated labour legislation to Parliament for updating as necessary. Key among these would be the Industrial Relations Act, Retrenchment & Severance Benefits Act, Occupational Safety & Health Act, Maternity Protection Act. Also, key would be legislation for the public service, police service, prisons, fire and estate police.
§ Contract work: The proliferation of contract work in the public service and state sector must be addressed so that workers can have security of tenure and pensionable employment and eliminate uncertainties which also compromise productivity.
§ Petrotrin refinery: The Government must re-open the Petrotrin refinery with the appropriate partnerships and logistics that this will entail.
Johnson also referred to the rising cost of living, which he called on the Government to address in the upcoming budget.
“If we consider some data from the Central Statistical Office (CSO/2023) it reveals that there have been increases across the board in real ‘bread and butter’ issues for the working people. The cost of necessities such as food, shelter, transport, and health has significantly increased while people face an uphill struggle with an increase in food prices of 44.24 per cent, an increase in transportation of approximately 43 per cent, shelter by 10.21 per cent and a significant increase in healthcare of 38 per cent. The government needs to address this and to afford at least some measure of relief for workers who are at the lowest end of the economic ladder.”
He then referred to some of the public sector unions who settled for the 4 per cent wage increase before the last general election saying that the weak economy and inflation devoured what little increases those workers received.
“Bear in mind that the much-touted 4 per cent and 5 per cent which was received by some workers in the public and state sector has evaporated even before it reached the households which had to address outstanding loans, credit and utility bills which piled up from 2014. While we are coming to the end of 2025, public servants and many state sector workers are still on 2013 or 2019 collective agreements, but the expenditure side continues to rise.”
Govt must find money
National Trade Union (NATUC) general secretary Michael Annisette said despite the economic problems, he strongly believes that the Government must be creative in finding the resources to raise public sector salaries.
“I have a view that the Government has the ability but the issue is how they prioritise and how it is spent. If they put workers first and decent wages as a top priority, we will help the economy to grow and satisfy a cadre of dissatisfied workers. I think that economics is about people.”
He criticised the previous Government for keeping wages low saying it hurt workers in an economy full of challenges.
“Labour has been forced to live under low wages and those conditions of employment for the last 10 years by the PNM Government, it was an economic crime and as far as we are concerned and we anticipate that that matter will be redressed. The only unions that took the 4 per cent were teachers, police and army and those others. But in terms of the other entities like port workers, like PSA, National Union of Government and Federated Workers (NUGFW) and the daily rated workers which is a large chunk of workers, they have refused to succumb to the pressure of accepting a 4 per cent increase over a six-year period. That has to be addressed. There are people who have not had increase in wages for the last 10 years.”