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Police win battle for $2m in back pay

Better off: Police have won $2 million in back pay after the Supreme Court upheld an arbitration award.

Police won around $2 million in salary back-payments from Government after a two-and-a-half year fight to get it to honour an arbitration award.

Officers will also receive around $800,000 to $900,000 in extra salary payments per year going forwards.

The result, achieved through a Supreme Court ruling on Friday, means each officer will get around $2,000 in back payments plus an extra $1,000 per year in future.

The award, made by the Permanent Police Tribunal in June 2008, said Police should get compensation because they have to contribute more than other civil servants to the Public Service Superannuation fund, which provides pensions for retired Government employees.

Government refused to pay the compensation, sparking discontent within the Police.

But during Friday's court hearing, Government lawyer Charles Richardson conceded he could not argue against it.

Lawyer for the Bermuda Police Association (BPA) Alan Dunch, remarked: "There is really no reason why I should have had to come here. This should have been dealt with properly some years ago."

Speaking after the hearing, vice chairman of the Police Association Carl Neblett said: "We went through the negotiation process in good faith. We abided by the rules, and at the end of the day we've now had to come to the Supreme Court of Bermuda to have these aspects of the award enforced."

He said the issue dented morale, commenting: "We have what we consider a bad taste in the mouth of Police officers, to be treated like this."

Government regulations made in 2004 mean officers are contributing 4.5 percent more to the pension fund than other members of the Civil Service, eroding their take-home pay.

The fund has been paying out more each year than it takes in, causing Government to supplement the funding out of general taxation while increasing deductions from Civil Service salaries to help make up the deficit.

Government argued during tribunal hearings that Police had to pay higher contributions due to having a lower retirement age, at 55, than the rest of the Civil Service, at 65.

The tribunal said either the retirement age should be brought in line with the rest of the Civil Service or there should be a further increase in pay equal to the percentage of wage deductions from pensions.

On Friday, Mr. Richardson and Mr. Dunch agreed that increasing the Police retirement age was "unenforceable". That left a pay increase for officers as the only option.

Mr. Richardson said: "The only question I can't answer right now is whether we can afford to pay for it."

Mr. Dunch responded: "It would be an astonishing suggestion, if it were ever made in subsequent proceedings, that the Government could not afford to pay that. It would cause me to wonder what the economic state is. It's not that significant an amount of money."

He also asked the judge to award costs in favour of the Police, commenting: "There is no excuse, none at all, for the Bermuda Police Association to have been put in a position where, two-and-a-half years after its arbitration award, it was forced to come to this court to get what was an uncontested order."

Ruling that Government must honour the award, Puisne Judge Ian Kawaley commented: "I think it's highly unlikely that the enforcement process will be a contentious one."

He awarded costs in favour of the Police.

Meanwhile, the two sides remain engaged in a separate wrangle over Government refusing to honour another aspect of the arbitration award a "combined allowance" amounting to ten percent of officers' pay.

That issue is due to go to Bermuda's highest court of appeal, the Privy Council, next year.