The Grenada Public Workers Union (PWU) is demanding more comprehensive consultations from the government regarding the proposed pension reform.
PWU President Brian Grimes has voiced concerns over what is perceived as an “aggressive rush” by the Dickon Mitchell-led Congress government towards implementing changes without adequate input from the trade unions.
The union leader is taking issue with the Prime Minister’s announcement last week of plans to introduce legislation in parliament in October, for the implementation of a new contributory transferable pension scheme within the public service.
The initiative, the Prime Minister explained, aims to provide pension benefits to approximately 3,000 contract employees who currently lack government pensions.
The new scheme proposes that both the government and contracted employees contribute to the pension fund. This formula will also apply to new entrants into the public service.
Reacting to the announcement at a press conference in St. George’s this week, Grimes told reporters that “this is a complex matter” and pointed out that “the actuary was doing the work on pension reform had a different iterations and computations about how this thing should work.”
He underscored the need for more extensive consultations with the unions, noting that beyond a meeting in November last year, there has been a significant lack of engagement with the unions on this critical issue.
Additionally, he has cited the need for the trade unions to be more “directly involved in the process” to ensure fairness and inclusivity.
At present the Grenada Trade Union Council (GTUC), which is the umbrella body for trade unions in Grenada, does not have a representative on the Government’s pension reform committee.
Based on what is being proposed both the government and contracted employees will be required to contribute to the pension fund, a system the Prime Minister assured will ensure that employees can “transfer their pension if they move to the private sector or choose to leave government service.”
The Prime Minister had previously indicated in a November 2022 parliamentary session that continued growth in the public service could result in the Government’s inability to pay future pensions using the existing non-contributory format.
Grimes, however, contends that a contributory scheme “requiring workers to pay three (3) percent of their salary will have a negative impact” especially on the “lifestyle” and “disposable income of some of the lowest paid” public servants.
The PWU boss emphasised that the introduction of a contributory pension plan might conflict with the Grenada Constitution, citing Section 92, which “speaks to any new pension being implemented has to be more favourable than the existing pension legislation.”
He also expressed the view that the proposed changes could be legally questionable and require careful consideration to ensure they are constitutional.
“We have to be very careful here that we don’t give away the constitutional rights of those that we represent,” he said.
According to Grimes the demand for greater consultation aims to protect the workers’ rights and ensure a fair and just pension reform process.
Grimes also raised concerns about what he described as the slow pace of the government’s three-phase regularisation process, which began in September last year.
“The regularisation process has been abysmally slow,” Grimes contended adding, “I would put my reputation on the line as President of the union that that is a fact.”
The second phase of the regularisation process is expected to advance this year and aims to regularise individuals holding various contract types, including PSC contracts, contracts of service, and daily-paid positions.
During the first meeting of Senators in 2022, Labour Minister, Senator Claudette Joseph warned of negative fiscal implications on the future of pension payments, if the government attempted to fulfill its campaign promise of mass regularisation of unestablished government employees, without addressing the burning issue of pension reform.
During this year’s May Day celebrations, she announced the regularisation of “298 public officers across different sectors.”
With approximately 3,000 contract workers currently employed by the government, most of whom are represented by the PWU, Grimes stressed that more needs to be done to ensure fair treatment and job security for all workers.