$7b at stake – Imbert warns over 2011 PSA, NIB wage agreement

A collective agreement reached between the Public Service Association (PSA) and the National Insurance Board (NIB), under the former People's Partnership (PP) government, could have consequences that are "far-reaching and could result in tremendous expense to taxpayers" if it is implemented, Finance Minister Colm Imbert has warned.

Speaking in the Senate on Tuesday, Imbert said, "I can say off the bat, if that agreement, the wage increase that was contemplated by that agreement, was implemented in the public sector, it would cost $7 billion." He explained, "This is why I am seeking advice at this point in time and that is all I can say at this point in time."

He described the matter as complicated, "since the collective agreement in question was not authorised by the ministerial committee established to monitor the conduct of wage and salary negotiations."

He said that committee was created under the PP and has since been renamed as Cabinet's human resource advisory committee.

"The agreement was not authorised as required by the directions given by the minister of finance through the permanent secretary of the ministry of finance to the chairman of the NIB on March 25, 2011."

Imbert explained this is "at variance with the provisions of section nine of the National Insurance Act."

Opposition Senator Wade Mark asked, "Why was the authorisation not sought by the parties involved in this collective agreement?"

Imbert replied, "The investigations of the Ministry of Finance so far, have indicated, as far as we have been told, that the management of the NIB did not inform the board of the ministerial directive of March 25, 2011." He added, "So far as I am aware, the management (of the NIB) is being called upon to explain why this letter from the the minister of finance was not made known to the board of the NIB."

Former St Augustine MP Winston Dookeran was finance minister between May 28, 2010 to June, 2012. When contacted on Tuesday, Dookeran said, "I don't have the information available at this point in time to comment on that."

In the Senate, Mark asked Imbert, "Is it a normal practice, from your experience, that, before collective agreements are arrived at between parties at the NIB, that your ministry or the inter-ministerial committee on wages must authorise same?" He also asked Imbert if "this was a breach of that practice."

Imbert replied that section nine of the Insurance Act requires the NIB to comply with directions given by the minister of finance. "These directions given in 2011 have never been rescinded and remain in force."

Reiterating his claim that the NIB management committed a breach, Mark asked, "whether the Government would want to consider, settling this matter, with the relevant players, having regard to the fact that the management is responsible and not the workers in question."

Imbert replied, "Those are Senator Mark's words. Those are not my words." He reiterated, "All I said was that I have been informed that the management did not bring the ministerial letter and ministerial directive to the attention of the board. That is all I can say at this point in time."

He stressed, "This is an active investigation and it is ongoing and I expect to get a report from the NIB in due course...With respect to the agreement itself, I have made it clear, the agreement has far-reaching consequences for taxpayers."

Mark asked Imbert what period the collective agreement was for, but Senate President Christine Kangaloo disallowed the question.

In a video posted on social media, PSA president Watson Duke warned Imbert he was "looking for war." He accused the minister of continuing to "provoke, harass and dog these workers for monies that are owed to them."

Although Imbert did not disclose the negotiated years, Duke spoke of 2014 to 2016 which he said "is a long-gone period."

He said the PSA had a meeting with the NIB and agreed in October 2020 that the collective agreement was valid.

"It is valid because it does not conflict with any known law of TT. It is valid because its gives no special rights to members only," said Duke.

"When we signed, we signed for the 500 to 600 employees of NIB, not all of TT. Stop the fear-mongering. Stop harassing the citizens of this nation about bills and bills to pay." Duke claimed Imbert and the management had said, "there is enough money to pay.

"How come all of a sudden now, you're taking these private negotiations for 500 to 600 persons and saying all of TT want the same thing?"

Imbert has previously said Government could not afford to pay substantial wage increases and has had to borrow $3 billion and withdraw $2 billion from the Heritage and Stabilisation Fund to pay public servants and cover the parallel health sector owing to the covid19 pandemic.

Insurance Act, section nine states: "In the exercise and performance of its functions, powers and duties under this or any other written law, the board shall act in accordance with any general directions of the government, given to it by the minister; but subject to this section, the board shall, when exercising and performing its functions, powers and duties, be subject to the control or direction of no other person or authority."