WICSU/PSU in Court over COLA payment

February 15, 2014 10:37 AM
PHILIPSBURG--Windward Islands Civil Servants Union/Private Sector Union (WICSU/PSU) took government to Court over the cost-of-living adjustment (COLA) for 2011 and 2012. WICSU/PSU's lawyer in the injunction, Monique Hofman of Bermon Law Office, said the union was challenging government over the non-indexation of COLA for 2011.
The union also wants government to pay civil servants the outstanding 50 per cent COLA for that year, as well as the full amount due for 2012.
 
Hofman said the 50 per cent had been accepted only under protest and was to be considered an advance.
 
Fifty per cent of the 2011 COLA was paid to workers late last year after much lobbying for the payment from unions across the board over several months.
 
Government initially had said there was no money to make the payment, as it was not included in the draft 2013 budget. However, 50 per cent was included in the budget later to pay the workers, but no decision was made for the payment of the remaining 50 per cent.
 
"Government paid COLA, which is an inflation correction on workers' salaries via indexation, annually and structurally for 20 years. Civil servants are counting on COLA, especially those in the lower salary scales, for whom COLA is a welcome and essential addition to their income," attorney Hofman said in Court on Friday.
 
The unions had held talks with government and the Ministry of General Affairs since April/May 2013 about payment of the arrears in COLA, but government declined to pay.
 
"COLA was not budgeted for 2013 and no information was provided about the other 50 per cent of 2011 or about 2012," Hofman said.
 
"Union members' rights have been violated. Based on history, they counted on continuation of COLA payments, as they considered these a fixed component of their salaries. COLA is a structural remuneration aimed at maintaining purchasing power. Inflation correction is permanent," stated Hofman.
 
Government's decision to cease payment constituted a one-sided infringement on civil servants' rights, according to WICSU/PSU, which is seeking a six per cent indexation for 2011 and four per cent for 2012.
 
Hofman said unions and government were engaged in talks concerning the future payments of COLA.
 
Attorney-at-law Richard Gibson Jr. said on behalf of government that the indexation of civil servants' salaries was not a right and no substantial part of their remunerations.
 
In consultation with the unions, government decides on indexation in case this is deemed necessary to safeguard purchasing power of the civil service. Feasibility and available government finances are main criteria in this.
"Automatic indexation is not the starting point," said Gibson. "Every year it is evaluated if there are reasons for an inflation correction. The availability of funds is playing an important, if not deciding factor."
 
He also pointed out that COLA had not been provided systematically and in full in the past either. COLA was not paid out from 1999 up to and including 2001.
 
COLA is paid out only when there is an inflation rate of two per cent or more, with a maximum of four per cent. Above that rate only 60 per cent is compensated, Gibson explained. "Therefore, civil servants cannot count on annual payment of inflation correction. Their expectations are completely unjustified," he said.
 
Gibson said government's financial position was far from rosy. "The Committee for Financial Supervision CFT has said that the structural indexation of civil servant salaries would be irresponsible for a reason. In this light, members of the Council of Ministers have decided to decrease their salaries."
 
He said government was prepared to continue talks with the unions, but recommended that the Court reject the union's claim.
 
The Judge will give his decision March 7.
 
(The Daily Herald)
 
In this case the Windward Islands Civil Servants Union/Private Sector Union (WICSU/PSU) was represented by Monique Hofman of Bermon Law Office in Sint Maarten. The government was represented by attorney at law Richard Gibson Jr.of Gibson & Associates Attorneys at Law in Sint Maarten.

Lawyer Roeland Zwanikken considers legal action against ABN AMRO Bank

May 08, 2021 6:14 PM
THE HAGUE--Attorney-at-law Roeland Zwanikken at St. Maarten’s BZSE law office is considering legal action against the intention of the Dutch ABN AMRO Bank to close the bank accounts of its clients in the Dutch Caribbean.

Fiscaal onderzoek bij notariskantoren vinden doorgang

May 07, 2021 8:04 AM
In het Antilliaans Dagblad: Fiscaal onderzoek bij notariskantoren
WILLEMSTAD – De fiscale onderzoeken bij de notarissen vonden en vinden, ondanks de beperkingen van Covid-19, weer doorgang en de medewerking aan de kant van notarissen en adviseurs is daarbij ‘over het algemeen goed’.

Juridische miljoenenstrijd tussen BNP Paribas en Italiaanse prinses verhardt

February 22, 2021 4:51 PM
  • Bezit van Italiaanse Crociani-familie op Curaçao mag van rechter worden verkocht
  • De Crociani's ruziën al jaren met BNP Paribas over een claim van $100 mln
  • Curaçaos trustkantoor United Trust heeft 'geen enkele relatie meer' met Camilla Crociani
Een Italiaanse prinses met zakelijke belangen in Nederland heeft het onderspit gedolven bij diverse rechtbanken in een langslepend conflict met zakenbank BNP Paribas.