CPO reports failure to reach agreement with PSA; matter will go to tribunal for determination

Chief Personnel Officer (CPO) Stephanie Lewis on Monday reported to Minister of Finance Winston Dookeran that she is unable to reach agreement on the matter of wage increases for public sector workers and has so advised President of the Public Services Association (PSA) Watson Duke.

Once the negotiations reach such a stage a dispute is deemed to exist in respect of the matter. 

This means that the minister is now obliged under the relevant sections of the Civil Service Act to refer the dispute for settlement to the Special Tribunal within 21 days from the date on which the dispute is reported to him.

And the tribunal is required to hear and determine disputes referred to it and to make an appropriate award for a period of not less than five years from the date on which it takes effect.

The Ministry of Finance on Monday issued a media release outlining details of the current negotiations between the CPO and the PSA.

Both parties have held 14 meetings since October 2010 on the issue of revised salaries and Cost of Living Allowance (COLA) for the period January 1, 2008 to December 31, 2010 for public services officers and personnel in statutory bodies.

On March 1, 2011 the CPO made her final offer on revised salaries and COLA to the PSA. That offer entailed the following:

Salary:
(i) Consolidation of the COLA of $125 per month existing at December 31, 2007 with salary at that date
(ii) With effect from January 1, 2008, an increase of 2% on the consolidated salary at (i) above
(iii) With effect from January 1, 2009, an increase of 1% on the salary at (ii) above
(iv) With effect from January 1, 2010, an increase of 2% on the salary at (iii) above

Cost of Living Allowance:
(i) For the period January 1, 2008 to December 31, 2009, a new COLA of $125 per month;
(ii) For the period January 1, 2010 to December 31, 2010, a new COLA of $135 per month.

Lump sum:
Payment of a lump sum of $2,000 in respect of the period January 1, 2008 to December 31, 2010.

The ministry said the PSA responded by letter dated March 10, 2011, with the following proposal:

(i) Consolidation of the Cost of Living Allowance of $125 per month existing at December 31, 2007 with salary existing at that date;
(ii) For the period January 1, 2008, a new COLA of $135 plus a 10% increase;
(iii) For the period January 1, 2009, a new COLA of $140 plus a 10% increase;
(iv) For the period January 1, 2010, a new COLA of $150 per month plus a 14% increase.

The Association also submitted the following proposal for immediate settlement of the issue:

(i) Consolidation of the Cost of Living Allowance of $125 per month existing at December 31, 2007 with salary existing at that date;
(ii) For the period January 1, 2008, a new COLA of $130 plus a 5% increase;
(iii) For the period January 1, 2009, a new COLA of $135 plus a 5% increase;
(iv) For the period January 1, 2010, a new COLA of $150 per month plus a 6% increase.