Some trade unions have en­dorsed the Na­tion­al Union of Gov­ern­ment and Fed­er­at­ed Work­ers’ (NUGFW) agree­ment with the State for a 10 per cent wage in­crease, 60 per cent of which will be paid in non-cash ben­e­fits.

The agree­ment, which cov­ers the 2014-2019 bar­gain­ing pe­ri­od, will ben­e­fit ap­prox­i­mate­ly 20,000 work­ers and cost the State $2.6 bil­lion in back­pay, while adding $252 mil­lion an­nu­al­ly to the wage bill. Of that sum, about $1 bil­lion rep­re­sents cash pay­ments, with the re­main­ing $1.56 bil­lion to be paid in non-cash ben­e­fits.

Con­trac­tors and Gen­er­al Work­ers’ Union (CG­WU)pres­i­dent gen­er­al Er­mine De Bique-Meade said her union had no is­sue with NUGFW work­ers re­ceiv­ing a 10 per cent in­crease split be­tween cash and fi­nan­cial in­stru­ments, not­ing that such an ap­proach can ben­e­fit work­ers. She added that non-cash pay­ments for ar­rears may en­cour­age greater fi­nan­cial dis­ci­pline, as lump sum cash pay­ments are of­ten quick­ly spent.