DOUGLAS MENDES, SC, the attorney representing the Public Services Association (PSA) is questioning the methodology used by the Ministry of Finance to arrive at its 4 per cent salary increase being offered to public servants.
Mendes raised this during his hour-long cross-examination of the ministry's Permanent Secretary Suzette Taylor-Lee Chee on the second day of the hearing of a matter between the Chief Personnel Officer (CPO) and the PSA at the Industrial Court, St Vincent Street, Port of Spain, on Thursday.
The PSA has rejected Government’s offer of a four per cent wage increase for 2014-2019. The proposal represents zero, zero, two, zero, zero, two for each year successively.
The PSA – which represents the largest catchment of public servants in the country – and the Fire Services Association are still resisting this offer. However, the Amalgamated Workers' Union, the TT Regiment, the TTPS, the Prisons Officers Association and the TT Unified Teachers Association (TTUTA) have all capitulated and accepted Government's offer.
Mendes reviewed Taylor-Lee Chee's witness statements and asked her to explain what formula was used to guide CPO Dr Daryl Dindial that a 4 per cent increase was adequate for public servants.
He argued that proper justification is needed to arrive at such a critical decision which affects tens of thousands of public servants.
In her response, Taylor-Lee Chee said the optimum percentage of salaries was done on a country-by-country basis and on that country's priorities at the time.
But Mendes continued to press Taylor-Lee Chee, asking for a specific formula which could have been used to arrive at that four per cent figure.
She said while a debt-sustainability index could be used as a measure, it was not included in her witness statements.
Mendes said if this formula was not included in her statements, he could not question her on its merits.
"Well then I can't ask you about it because you haven't made evidence in here (witness statements)," he pointed out.
"According to your witness statement, you don't employ any of the mechanisms you have just mentioned to stick out the four per cent, as opposed to three per cent, or eight or ten.
"There isn't any magic formula because, as you say, it depends on priorities."
Mendes also referred to reports that state-owned oil and gas company Heritage Petroleum earned $1 billion in profit, noting this was a good indicator of the state of the local energy sector.
Taylor-Lee Chee contended that Government continued to service about $3 billion in debt for that company.
But Mendes maintained the performance of Heritage suggested it could be taxed and was not in a dire state.
Mendes said he was concerned that Taylor-Lee Chee's submissions only included certain facts to help support the case of the ministry.
"I'm just concerned that you are harping on the bad news in your witness statements for the parties who you represent.
"That's why I asked you in the first place, if you are an independent witness, because you're not presen
