Public Services Association (PSA) president Watson Duke has cancelled all protest action by members of his union, including a hunger strike he intended to stage because of the government’s failure to pay outstanding backpay to public servants. He made the announcement at a press conference at PSA headquarters in Port-of-Spain, yesterday.
Government officials have said the money could not have been paid by Christmas last year because it was not available. A loan is to be sourced to fund the payment this year, Labour Minister Jennifer Baptiste-Primus said, recently.
Yesterday, Duke said his union’s decision to cancel all protest action was being done in good faith and in the interest of “putting the nation first.” He said, consequently, he would want Prime Minister Dr Keith Rowley to honour his promise to begin tripartite discussions this month before the expected price increases take effect next month.
Finance Minister Colm Imbert is expected to present the Finance Bill 2016 for debate when Parliament resumes after the Christmas break on Monday at 1.30 pm.
That bill will seek to get the approval of the House of Representatives to adjust the rate of Value Added Tax from 15 per cent to 12.5 per cent. Other sources have said the move would effectively reintroduce VAT at 12.5 per cent on thousands of food items which were zero-rated by the former PP government.
Imbert’s bill will also increase the Business Levy and the Green Fund by 200 per cent, respectively. The bill will also re-introduce land and building taxes. The new VAT rate is expected to take effect from February 1, while the other measures will be retroactive to January 1.
Duke said the tripartite talks are intended to deal with three matters: the level of employment, salaries and wages, and profits by the business community. He said the PSA was heeding the PM’s call to place the national interest before any sectional gain. He said the hunger march originally scheduled for Monday had been postponed indefinitely.
“It is our hope that the tripartite talks will yield results,” Duke added. He said the PSA would not seek to fight any government without just cause.
Duke said even though the discussions have not yet started, there was already talk about “the need to increase (zero-rated) goods to 12.5 per cent on a number of goods, the Green Fund levy being increased by 200 per cent, the Business levy being increased by 200 per cent, the re-introduction of the land and building taxes (and) all of these spell trouble to the PSA and the trade union movement.”
He said PSA members “with a restricted income will have to grapple with the cost of goods and services.” He said while the Government was “forcing the workers to remain with a frozen salary, the business community is allowed a free rein to do whatever they want.”