Lead Editor-Politics
akash.samaroo@cnc3.co.tt
The Public Services Association (PSA) has submitted a counterproposal to the State, seeking to have part of the non-cash component of the backpay owed to its members provided through food cards, fuel assistance and other benefits.
Guardian Media understands the union has formally responded to the Chief Personnel Officer’s (CPO) “best and final offer”, which proposed that 40 per cent of the outstanding arrears be paid in cash and the remaining 60 per cent through non-cash benefits.
However, the PSA is reportedly seeking the reverse arrangement, requesting that 60 per cent of the settlement be paid in cash and 40 per cent through “deferred cash” measures.
Contacted yesterday, CPO Commander Dr Daryl Dindial declined to confirm the details of the union’s response, saying it would be inappropriate to discuss the ongoing negotiations before further discussions are held with the PSA.
However, Guardian Media has reliably learnt that among the options proposed by the union are food cards and fuel vouchers as part of the non-cash portion of the settlement package.
The proposal could spark debate over whether such benefits can truly be classified as “non-cash” compensation.
Officials at the Ministry of the People, Social Development and Family Services explained to Guardian Media that food cards are generally front-loaded, meaning the funds must be made available before the cards can be issued and used.
Similarly, fleet and fuel card programmes in Trinidad and Tobago can operate as either prepaid or postpaid facilities, depending on the financial standing of the company involved and the arrangements negotiated with the issuer.
Industry sources explained that while larger businesses with established credit histories often qualify for postpaid facilities, a significant number of local companies utilise prepaid arrangements that require funds to be loaded onto the cards before purchases can be made.
Several attempts to contact PSA President Felisha Thomas were unsuccessful. Calls and messages went unanswered yesterday.
Finance Minister Davendranath Tancoo was asked if the food and fuel cards request is something the State could afford. However, responding via WhatsApp, Tancoo said, “no comment.”
Former PSA head Watson Duke also declined to comment when asked if he believes the union’s latest request was practical and viable.
In May, CPO Dindial presented what he described as the State’s “best and final offer” to settle the outstanding arrears.
Under that proposal, 40 per cent of the backpay would be paid in cash, while the remaining 60 per cent would be delivered through a range of non-cash benefits. These included assistance with mortgage and rental obligations through the Housing Development Corporation (HDC) and the Trinidad and Tobago Mortgage Bank, settlement of statutory tax liabilities, tuition payments at state institutions, medical benefits, vehicle-related tax concessions and other forms of financial relief. The Government also proposed that retirees receive arrears owed for the period 2014 to 2018 entirely in cash.
The PSA rejected the proposal, maintaining that backpay represents earned income rather than a gift or incentive.
The union also argued that public servants have widely differing personal circumstances and would not benefit equally from the conditional arrangements being proposed. It noted that many workers do not have HDC mortgages, rental obligations or tax liabilities that could be offset through the package.
On May 23, Dindial gave the PSA four weeks to respond to the offer, while indicating that the State’s fiscal constraints limited its ability to accommodate several of the union’s demands.
Guardian Media understands the union responded within the stipulated timeframe and is now awaiting further correspondence from the CPO.
The dispute stems from a landmark agreement signed on December 2, 2025, under which the PSA secured a 10 per cent wage increase for public servants across two bargaining periods spanning 2014 to 2019. The settlement created a total backpay liability estimated at approximately $3.8 billion.
Ahead of Christmas, the Government distributed a $500 million advance payment on the arrears on December 23, 2025.
The relief package was paid as flat-rate, tax-deducted cash sums based on employees’ length of service. Workers employed throughout the 2014-2023 period received a net payment of $20,000, those employed from 2014 to 2025 received $14,000, while employees who joined the service during 2025 received $10,000.
The remaining balances of their arrears are still to be settled.
