CPO offers NUGFW 10% hike, including non-cash options

The Chief Personnel Officer (CPO) has offered the National Union of Government and Federated Workers (NUGFW) a ten per cent increase for the period 2014-2019. It is projected to cost $2.6 billion, split between cash and non-cash options, with a recurring cost of $250 million per annum.

CPO Dr Darryl Dindial made the announcement to the media following negotiations with the union acting on behalf of government daily-rated workers on January 26.

Dindial said, “What is important to note is that the value of this offer is $2.6 billion. The recurrent cost of this offer, for it to continue to be funded, is an additional $250 million per annum. That’s a significant cost.

“One of the things that the CPO placed on the table is that, to treat with these arrears, we must consider non-cash options. The State has to act responsibly to ensure that jobs are preserved and jobs are created. So to offset this debt, because this is what it will be, and hopefully the NUGFW accepts the offer, once they accept this offer, it is a debt to be settled. And this debt has to be settled with a mix of cash and non-cash.”

Dindial said the NUGFW would speak to its membership about the offer over the next two days. He said if the offer is accepted, the payouts would not happen immediately.

“I’m hopeful we could sign off if not on Wednesday, then by Thursday. If we could sign off, the intent is to put the new salaries on after mid-year review because this was not budgeted for. So the Minister of Finance, the technocrats in the Ministry of Finance would have had to work to allocate and to find money to put on these new salaries in the month of June or July.”

Dindial said he had asked those present in the meeting for patience and advocacy.

National Trade Union Centre (NATUC) general secretary Michael Annisette, speaking to Newsday via phone following the meeting on January 26, complimented the negotiating teams on both sides for a mature exchange of responsible ideas.

“The proposals submitted were similar to those submitted to the Public Servants Association (PSA). There is a merger of cost of living for two collective bargaining periods, which is something NATUC was advocating for and was against when the (former) Rowley-led (PNM)administration removed the consolidation which is ingrained in our collective bargaining landscape as an industrial relations principle.”

He thanked the NUGFW workers and leadership for being patient, as the negotiations had been outstanding for more than 12 years.

“One would appreciate the financial constraints and strangulation that workers were facing. They rejected the four per cent offer which NATUC would have spoken against as we believe it is an unfair proposal being put by the government given the economic realities workers are going through.”

He expressed gratitude to the government and the CPO for moving the offer from four to ten per cent over the six-year period.

“As general secretary of NATUC, I am fully aware of the economic landscape the government has to operate under. What this meeting would have demonstrated, when you sit down with the trade union and discuss issues in a mature way and put the facts on the table, the union inevitably responds in a mature manner.

“Hats off to the NUGFW team who would have acted responsibly, with clear understanding of job security and the security of tenure of workers, but at the same time understanding that workers must have a level of wage increase that can carry them over the economic line.”

Annisette said there were a few issues which need to be tweaked, including further consideration of pensioners.

He said the CPO pointed out the government does not have the financial opportunities to pay out the $2.5 billion as it is dealing with several other institutions which fell under the remit of the CPO, such as the teachers, the Defence Force, the Contractors and General Workers Union, and others.

“The CPO did not pull any punches. He would have come to the table and said, ‘This is what we can afford, this is the economic reality the government is facing, they have to find money. They didn’t cater in the last budget so there’s an anticipation that in the next fiscal year, the workers will be paid.”

Annisette said there were several mechanisms for non-cash items, such as government taking over payments to state entities.

“For example, if you are owing HDC, it can be converted. If you’re owing the TT Mortgage Finance Company, you can look at that. If you don’t have an HDC home or if you’re in arrears with HDC, those are some of the non-cost items we were talking about.

“At the same time, what that means is that the worker will get a relief. If the government is paying that off, it means the money the worker would have had to find to make that payment will now go back into his pocket, thereby generating more economic activities, because we are a consumer economy, and the more disposable income a worker has, the more the country tends to benefit from workers having disposable income.”

Annisette said NATUC thinks the idea was well thought out.

“It is something we could look at moving forward as we try to work to build the economy, efficiency and productivity, but not making the workers the sacrificial lamb in so doing, understanding the worker is part of the growth and therefore they must share and their wages must be living wages that speak to the economic realities workers are facing.”

The CPO settled with the PSA for ten per cent in December 2025. Finance Minister Davendranath Tancoo said all settlements reached prior to April 28 will be honoured. These included the TT Unified Teachers Association, the defence force and the Port of Spain and San Fernando City Corporations.