PSA rejects CPO's arrears payment proposal, demands more cash

The Public Services Association (PSA) has rejected a proposal from the Chief Personnel Officer (CPO) regarding the payment of outstanding arrears to public officers and retirees, signaling a continuation of negotiations.

The PSA, in a bulletin dated May 23, informed its members that it met with the CPO to discuss arrears for periods covering January 1, 2014, to December 31, 2016, and January 1, 2017, to December 31, 2019. These negotiations involve the Civil Service, Statutory Authorities, and the Tobago House of Assembly. The union previously secured a 10% salary increase for public officers effective December 2025, along with the consolidation of the Cost of Living Allowance (COLA) and adjustments for retirees.

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This settlement represented a major departure from the 4% position of the last administration without the consolidation of COLA and has delivered tangible and meaningful benefits to workers and their families.

According to the PSA, the CPO's initial proposal on January 30, 2026, consisted of 40% cash and 60% non-cash arrangements. The cash component was to be disbursed over three fiscal periods. Non-cash elements included offsetting Housing Development Corporation (HDC) and Trinidad and Tobago Mortgage Bank obligations, settling tax liabilities, providing executive medical coverage, offsetting tuition fees at state institutions, offering tax exemptions on vehicle purchases, and converting cash entitlements into leave.

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The PSA immediately rejected the offer presented.

The PSA rejected this offer and countered with a proposal for 80% cash and 20% deferred cash in the form of interest-bearing bonds. They also proposed settlement of outstanding medical plan debt, preferential access to HDC housing, and access to residential and agricultural lands. During a subsequent meeting on Friday, the CPO reportedly resubmitted a proposal similar to the January offer, with an added stipulation that retirees would only receive full cash entitlements up to 2018, with subsequent payments handled through non-cash means.

The PSA "immediately rejected the offer presented" again. The union is committed to ensuring "all retirees must receive their outstanding arrears in full cash" and that payments should be made by March 31, 2027. Revised submissions, proposing a settlement structure of 60% cash and 40% deferred cash, are to be presented to the CPO on Monday, May 25, 2026.

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all retirees must receive their outstanding arrears in full cash