The fundamental issue of creating disturbances in the public sector is that of the percentage of gratuity and pension that will be paid to workers who entered the service after 22 February 1985. According to Minister Oliver Joseph, the Government is under no obligation to pay pension and gratuity to these workers.

During the weekly Post Cabinet Briefing, the Minister stated that the 1958 Pension Act made provisions for permanently established workers who qualified after 33 1/3 years to receive a pension. Subsequently, through negotiations, it was changed to 26 2/3 years. Then, “1983 the Government then passed the Pension Disqualification Act on the 4 April 1983, which superseded and cancelled the 1958 Pension Act and made a contributory plan where the employer and the employee contribute to the national insurance and all workers will qualify and benefit under the National Insurance Scheme once they qualify.”

He went on to say that when this government came in, they opted to look at the issues surrounding the NIS contributions as well as to review, reform and restore pensions. The Law, was then gazette on 22 February 1985, and, in keeping with the court’s ruling the government restored pension to all workers that came into work before the 22 February 1985; and, that costs the government $7 million in restoring pension.” This, he said, is the Government’s only legal obligation.

According to Joseph, the Union’s claim of 25% gratuity was not agreed upon by the Government, as it is not in the collective agreement and it is not enshrined in Law. The Minister also stated that he did his research and noted that this 25% is not under the Teacher’s Pension Act neither is it under the Act that governs the public workers, “because the Pension Disqualification Act supersedes and cancels the 1958 Act.”

“If it is under an Act, and you are legally entitled to it, then that is a matter that can easily be addressed in the Court…But as far as the Government is aware, there is no such Act that contains a 25% legally binding gratuity for public sector workers,” the Minister continued.

Notably, as was mentioned by Joseph, the Union’s demand of 25% gratuity will add up to $21 million annually to the payroll and will bring the cost of pension to approximately $74 million annually. “This amount, first of all, is not affordable, neither is it sustainable,” and, the Government will have to cut certain programmes in order to facilitate this in the Budget. “Also, there is the fiscal responsibility act that is in place, and there is the public expenditure rule which states that you cannot exceed expenditure over 2% from the previous year. This amount will mean that we have to breach the fiscal responsibility Act [and] if we breach the fiscal responsibility Act, it means that the financial pledges that we have will not receive it. It means that hundreds of millions of dollars in grant funding will not come to the state.”

Joseph says the reason Government receives praises for the country’s economic performance is due to the level of responsibility and adherence to the Fiscal Responsibility Act, and remaining within their budget. “Therefore, to give all that to satisfy the demands of public sector workers that have already benefitted over the last five years from 110 million in retroactive pay, a 10% increase – 3% in 2017, 3% in 2018, 4% in 2019…” He says the government cannot afford to neglect other sectors in the society because that would be very irresponsible of them.

Joseph said the Union is trying to make persons believe that the Government went back on their offer of 25% and are now offering 2%. This, he claims is untrue.

Leaders of the PWU are disagreeing with Joseph’s statements, and are saying that the government is misleading the public, and they are asking the public not to be fooled with the lies being put on the table by the Government.