Grenada Government, Trade Unions End Pension Dispute

ST GEORGE'S, Grenada, CMC - The Grenada government says agreement has been reached with two trade unions for the reintroduction of a pension scheme for public officers which was disbanded by the People's Revolutionary Government (PRG) in the 1980s.

Prime Minister Dr. Keith Mitchell says the powerful Public Workers Union (PWU) and the Grenada Union of Teachers (GUT) have agreed to a phased implementation of the scheme.

The National Insurance Scheme (NIS) will play a key role in the new pension arrangement which was compiled with assistance from the Commonwealth Fund for Technical Cooperation (CFTC).

"We are therefore happy to report that the conclusion has now come. We have now signed on with the teachers union and with the public workers," Prime Minister Mitchell announced at the launch of his New National Party (NNP) manifesto Wednesday evening.

The party, in government for the past 13 years, is seeking a record fourth straight mandate to govern.

"We would now have a phased in implementation of the new pension scheme for all public workers that come into the service after l983. Clearly the NIS has to be involved," Prime Minister Mitchell said.

In l983, the PRG abolished pension for public officers joining the service and to date only officers appointed before April 4 of that year are entitled to receiving such benefit.

The umbrella Trade Union Congress (TUC) has been clamouring for the pension scheme to be reinstated for all appointed public servants.

Pension planner Simon Sutcliffe, recruited from the Trinidad and Tobago firm Bacon Woodrow and De Souza, has been conducting an actuarial study of the problem since September last year, following a government request to the Commonwealth Secretariat.

"So, with the public workers and the unions, we agreed that since the NIS was also receiving contributions from the government for the workers, that the NIS has a role in correcting that problem like the government does," Dr. Mitchell said.

"So with the unions, the NIS, the government and the workers, we applied and received support from the Commonwealth Secretariat through the CFTC program and they sent us an actuary scientist, who examined over the last year or so and identified enormous cost if we just say 'implement'."

A Government statement quoting Sutcliffe said that the comprehensive actuarial valuation, including the financial implications of the move, was scheduled to be completed by the end of 2008.

The report was expected to be presented to Cabinet and then taken out for consultations with stakeholders, including the unions.

The reintroduction of the pension scheme for workers joining the public service after l983 is expected to cost government some EC$50 million (US$18.8 million).

 

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