Workers of the Guyana Power and Light Company who had embarked on industrial action to secure a wage increase have been vindicated with the award retroactive to January, 2012.

The Arbitration Tribunal that had been set up by Minister of Labour, Dr Nanda Gopaul, yesterday, presented its report, awarding the workers a maximum six percent increase in wages, a move welcomed by the union representatives.
The lower-scale employees have been awarded a 6 per cent increase, while other employees will benefit from a 5.5 per cent increase.
Regarding the 2001 Collective Labour Agreement (CLA) which the two parties have been haggling over for several years, Chairperson of the Tribunal, former Justice Prem Persaud, told those gathered at the Labour Ministry’s Brickdam Office “it is not enforceable.”
Addressing the matter of the power company contracting workers, Justice Persaud said that the lawyers representing the teams did not lead any oral evidence on the issue, and as such the tribunal was unable to make a determination on the matter.
Regarding the annual negotiations on wage increases that had obtained, Justice Persaud indicated that the process, apart from being very costly, is time-consuming and as such, has recommend that the process be undertaken every three years.
Labour Minister Dr Nanda Gopaul, who was presented with a copy of the report, welcomed the expeditious manner with which the matter was pursued and concluded by the tribunal, but lamented the resort by the workers to move to strike action.
He reminded that the award is binding on both parties, namely the workers and the power company, saying, “I am sure that both sides will take heed of some of these commendations contained.”
Dr Gopaul also used the opportunity to commend the two groups on choosing to have the matter resolved using the tribunal as against continued strike action.
The strike, he said, was unfortunate and its resort indicated a level of mistrust existing between the two groupings.
He says that while there may have been deficiencies in the CLA, the spirit of the agreement should be taken into account.
Dr Gopaul posited that had this been the case, the workers would not have proceeded on strike.
“I want to urge parties to disputes not to resort to the weapon of last resort, which is a strike, but use the services of the Ministry of Labour.”
Strikes, he conceded, are inevitable, but “we need to reduce them.”
The Labour Minister said too that in the report, there are positives for the workers of the power company adding, that “without workers, we can’t have the desired effects and results.”
General Secretary of the National Association of Agricultural, Commercial and Industrial Commercial Employees (NAACIE) Kenneth Joseph, who had engineered the protest action, welcomed the award, saying that the union is cognizant of the fact that GPL is not in the best of financial health.
According to Joseph, with the union and workers now vindicated in their move to take industrial action, he would like to now ensure that the workers are paid for the days for which they had been on strike.
This is a matter not addressed by the tribunal as they presented the report, and as such, he requested the members to indicate to the power company that this be done.
Joseph also used the opportunity to remind of the union’s concern regarding the management of the power company.
He said that NAACIE is in receipt of evidence that the money spent by the company is not being done so in the most efficient manner.
GPL workers, he said, are also very concerned about the manoeuverings in Parliament, especially as it relates to the $5B that had been withheld by the opposition for the power company.
This move, he said, has been causing the power company to signal a retrenchment of permanent staff falling in the category of unionized workers.
Calling for an investigation into the affairs of the power company, Joseph said “there needs to be better management of GPL.”
He said that an investigation should be the precursor to the monies being returned to the power company, adding that the current atmosphere, inclusive of the political dispensation in Parliament, aptly sets the stage for such a move.
Joseph said that the union is willing to be a part of any such activity.
“The time is right for a proper investigation for the country to go forward with cheaper electricity…we offer ourselves to be part of any investigation so that very soon in the future GPL can turnaround.”
Deputy Chief Executive Officer of the GPL, Aeshwar Deonarine, while conceding that with the results of any such tribunal ruling, neither party would be wholly satisfied, the power company will abide with the ruling.
He lamented the fact that the parties would have had to reach the stage of an arbitration tribunal saying that “reasonable people” should have been able to evaluate the evidence and would have come up with a similar, if not identical, conclusion.
Deonarine also used the opportunity to lament the budget cut that directly impacted the company, saying that it has forced the company to make radical changes within the entity.
He reminded that many of the factors affecting the cash flow of the power company are exogenous, and outside of the ambit of its control.
Deonarine drew reference to the fuel bill of the power company, which, he says, continues to pose a serious challenge.
The GPL Deputy CEO lamented that with between 80 per cent and 90 per cent of its revenue being expended on fuel, there is very little left to expend on the plethora of other areas that require cash injections, inclusive of maintenance and capital expenditure.
This, he said, will inevitably have a “domino effect.”
He drew reference to the 26MW plant being installed at the Vreed-en-Hoop substation being financed though a loan from government, and asks how the company would be able to finance such projects when it continues to make losses.
The GPL Deputy CEO reminded that in order to curb the technical and commercial losses, it will require significant upfront cash investments of tens of millions of US dollars.
Deonarine said that the power company would like to pay greater increases to its employees, but is constrained.
He reminded that an increase in electricity tariff is always an option, but this has to be placed in the context of the consumer’s ability to pay.
“It comes back to how you allocate the scarce resources…We would like to give more increase, if possible, but we have to strike a balance.”
Following failed negotiations between the union and the power company earlier this year, workers proceeded on a strike, forcing the Ministry of Labour to intervene, and the two parties subsequently agreed to the arbitration tribunal.
That tribunal panel included former Justice Prem Persaud, Dr. Gobin Ganga, Deputy Governor of the Bank of Guyana and veteran Trade Unionist Grantley Culbard.
GPL had been holding out that its all-inclusive five percent offer was even more than it could have afforded, and would have to be met through government subsidies.
Negotiations with the union for wages increase for 2012 commenced in September last, with the union demanding a 25 percent increase across-the-board.