President of the Public Workers’ Union (PWU), Brian Grimes is calling on the government to broaden the platform for discussions on pension reform, raising concerns that the proposed October 1 implementation of the new transferable contributory pension scheme may be unrealistic without open and productive dialogue.
“We are saying that it has been implemented too fast at the disadvantage of our members,” Grimes told reporters at a press conference on Monday.
The GPWU boss emphasised the union’s repeated efforts to address issues with the proposed pension formula, but noted that their attempts have seen limited success.
“We have flagged a number of things in the documents that need to be addressed and negotiated, and October 1, in our view, is an unrealistic date if both parties are seriously involved,” he said.
Grimes is proposing that a “pay and grade review” be conducted similar to “what was done in the Turks and Caicos…before the implementation of pension reform.”
The PWU continues to advocate for more inclusive and transparent discussions, aiming to ensure that reforms to the pension system are equitable and beneficial to all public workers.
Grimes warned that the union is prepared to“do all that is in our power legitimately to ensure that our members rights are respected,” pointing to what he described as a common trend that they ( the government) keep overlooking the union,” on important and outstanding issues involving its members.
He stated that this is not in keeping with “the principle of collective bargaining, honoring the collective agreement and honoring the protocols that they would have signed in to with the International Labour Organisation (ILO), and this is not good at all.”
He added that the union is “just trying to maintain our patience, and we are trying to do all in our power to maintain a good industrial relations climate but we are calling on the Government of Grenada to engage us more.”
In announcing the planned implementation of the new pension scheme earlier this year, Prime Minister Dickon Mitchell explained that it aims to provide pension benefits to approximately 3,000 contract employees who currently lack government pensions.
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.
During Monday’s press conference, the union leader stressed that the interests of workers must be prioritised, and the PWU is ready to work collaboratively with the state to find a solution that works for everyone.