GEORGE’S, Grenada, CMC – The chairman of the Government’s Pension Engagement Committee (PEC), Oliver Joseph, says he remains hopeful there can be an amicable settlement to ongoing pension negotiations with public sector trade unions and staff associations.
The parties have been at a loggerhead even after the government offered an eight per cent gratuity over an eight-year period. Previously it had offered two per cent over 12.5 years.
The unions and staff associations are demanding a 25 per cent hike.
Joseph, who is also the Economic Development, Planning, Trade and Labor Minister, told legislators he is hoping the spirit of the Christmas season will extend to the negotiating table and the two sides can reach agreement on pension reform.
He said the Keith Mitchell government has honored its commitment to restore pension, paying more than seven million EC dollar (One EC dollar=US$0.37 cents) 56 workers earlier this year.
Joseph said that there must now be a genuine commitment to pension reform by both parties.
Any agreement commits the state
Joseph said any pension agreement will commit the state and not just the government of the day to honoring the agreement, therefore it must be affordable and sustainable and must not beak the provisions of the Fiscal Responsibility Act.
Last week, the government said following the latest round of talks the unions and staff associations had not presented a new proposal as requested but instead, re-submitted the same proposal of 25 per cent.
“Government maintains that the unions’ current demand will break the Fiscal Responsibility Law and also negatively affect the country’s debt to GDP ratio which has been reduced significantly with the home-grown Structural Adjustment Program,” the government said in a statement.
