PORT OF SPAIN, Trinidad (CMC) -The Trinidad and Tobago government Friday said a 12 per cent wage increase promised to workers at the port of Port of Spain in 2015, did not follow the guidelines and as a result would not be honoured.

Works and Transport Minister Rohan Sinanan told Parliament based on legal advice from two senior counsels, the Port Authority of Trinidad and Tobago (PATT) and the Seamen and Waterfront Workers Trade Union (SWWTU) had been advised that the memorandum of agreement (MOA) is not enforceable.

“The SWWTU was provided with an offer for the period 2014-17 and 2017-2020. The SWWTU has refused the submitted offer,” Sinanan told legislators, adding that the PATT has been “actively engaging the union to bring about a settlement on this matter without success”.

Port workers have been embarking upon industrial action for over a month now and the SWWTU President General Michael Annisette has described the workers’ action as a response to several issues at the port.

Annisette has not yet responded to the latest statement by the government, but last week he expressed concerns regarding the PATT’s failure to fulfil its obligations and commitments for upgrading certain roles, as previously discussed with the union.

The Trinidad and Tobago Chamber of Industry and Commerce (T&T Chamber) has already expressed concerns over the continued disruptions at the port of Port of Spain noting that the labour dispute highlights labour and operational challenges, and it is urging key stakeholders to engage in constructive dialogue for a swift resolution.

“Trinidad and Tobago’s economy is already under strain, and the knock-on effects of this impasse are expected to impact economic activities well into 2025,” the private sector group said, adding that a recent survey it conducted across 15 economic sectors, representing 65 per cent of small and medium-sized enterprises (SMEs), reveals the far-reaching impact

According to the chamber, delayed shipments and canceled orders are projected to reduce revenue, with some companies anticipating a 10-20 per cent drop in income.

In addition, it said more shipping companies are bypassing the port of Port of Spain, adding logistical costs and compounding challenges for local importers

Sinanan told Parliament that PATT has signaled its “desire to continue negotiations in good faith but is challenged with the long term inflationary economic impact”.

He insisted that the guidelines for the negotiations were not followed and as a result, the agreement reached cannot be honoured. He would not, when pressed by the opposition to disclose the names of the senior counsels, telling legislators “based on the discussions and the stage of these negotiations it would be improper for me to name those available based on impending court action that may come out of this decision”.

He recalled that in 2014 there was a committee headed by the then finance minister Larry Howai, adding “I don’t know of that was altered then, however what we can say is they do get guidelines from the committee on negotiations.”

Sinanan said he also wanted to reiterate that there are three bargaining units at the Port of Port of Spain and the “issue is with one of the bargaining unit”.