GPL agrees to pay workers eight percent increase
GUYANA Power & Light (GPL) employees will, this week, receive an eight percent across-the-board pay increase for 2011, following an agreement between the utility company and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE). The documentation was signed at GPL’s Head Office in Duke Street, Kingston, Georgetown, on Wednesday.
General Secretary, Mr. Kenneth Joseph told the media that NAACIE has been successful after a few weeks of arbitration, which won them an award of six percent for 2010 and two percent for 2008.
He said they are happy with what was awarded but they had, initially, asked for 10 per cent. However, after taking GPL’s financial situation into consideration, they accepted the offer as no increase had been received for more than four years.
Joseph said: “When we looked at it and spoke to our members across the country, we felt that it is, indeed, in our interest to close off 2011 and start 2012 as early as possible, instead of ending these discussions at the end of year.
“We have also agreed with the company that, in the first week of 2012, we will start to look at those workers who were reclassified and trained in further skills and visit areas in which they work, with a view of changing the classifications formally, which is another step NAACIE hopes to complete.”
Joseph said they have considered the argument the company raised about the hike in tariffs that would have had to be introduced next year, if the workers had pressed for a greater percentage.
“So they want, at the end of it, to please our members and ensure that the consumers of GPL are comfortable during the next year,” he added.

CORDIAL RELATIONS
Joseph said they have resumed cordial relations with GPL and took no industrial action this year and they are very happy that their members are much more satisfied now and are hopeful that, by 2012, they will be more eager to contribute and assist the nation with the production of electricity to progress.
In his remarks, GPL Deputy Chief Executive Officer, Mr. Aeshwar Deonarine, who placed his signature to the pact, expressed his pleasure that NAACIE agreed to accept the offer in the circumstances.
He disclosed that there was no rise in fringe benefits since 2006 but the two sides have agreed to hike all allowances effective, from January 2011, for which the beneficiaries will be paid today.
Deonarine said the current price of fuel does significantly affect the operations of the company and, whilst the cost has been below that of its peak in 2008, it is still relatively high.
He said GPL is paying US$20 more per barrel and, in addition, the price of diesel, of which it uses about 20 percent, has also increased by about US$20 more per barrel.
“On all fuel we have used this year, there has been a US$20 increase per barrel and we use about a million barrels a year, so US$20 is an additional US$20M for us, that is $4billion Guyana dollars. So, when fuel prices move like that, it does significantly affect other areas of operations,” Deonarine explained.
He said to fund the 15.6 megawatts plant that was commissioned recently in Kingston, they had to apply to the government for a loan and, when the price of oil went up, other capital works were affected.
Deonarine said, that as announced before, an US$8M to $40M loan from the Chinese Government was expected to commence in 2012 and that was anticipated to increase, significantly, the transmission, distribution and control systems which were slated for completion by 2013 but the frequency conversion project was halted.

BACK BURNER
He said the Wartsila plant has four sets, costing in excess of US$7 billion, which were to be installed this year but that has since moved to the back burner, due to lack of funds and indications are GPL would have to depend heavily on two old converters in Sophia with which, ever so often, there are problems that cause sections of the city and its environs to be affected.
“So we are trying to move away from those converters but it calls for investment in completion of the plant that is still in our expansion and development plan to be done late 2012,” Deonarine said.
He revealed that other transmission and distribution issues involve the price of poles, which have increased since they use a significant number – between 10,000 to 12,000 per year and experience difficulties sourcing them, let alone the pricing.
“So the company is in serious financial difficulties and against that backdrop, we had to go the government saying we need financing for the plant, and we are also negotiating with unions which are expecting increases, we are unable to pay, and the government said they will see what they can do to assist the company, either through further loans or other means so that the operations can continue,” Deonarine related.
He reiterated that GPL is happy that NAACIE has accepted the position of the company and is taking the eight percent rise which the utility can ill afford but also wants its staff as well as its customers to be happy because it is trying its utmost not to increase tariffs.
Present at the signing ceremony, too, were Chief Labour, Occupational Safety and Heath Officer, Mr. Yoganand Persaud, who reminded of the Essential Services Act and urged the parties to abide by the agreement and continue to work for progress.
He also hoped that negotiations in 2012 will start early and the bilateral relationship will be strengthened.