THE Labour Ministry has been successful in the prosecution of employers who have flouted labour laws, and has recouped large sums for workers who have been exploited.
In this regard, Minister of Labour, Dr Nanda Gopaul is cautioning employers to ensure their employees benefit from the recently set minimum wage of $35,000 which comes into effect from July 1.
He said those who are delinquent and pay their staff less than the national minimum wage, if found guilty will pay a fine of $35,000 for the first offence. The second offence will result in a fine of $75,000 and one month in jail.
The recent decision by government to implement a national minimum wage will result in a higher standard of living, in addition to increased wages for approximately 31,000 workers.
Gopaul, during an interview on the National Communications Network on Thursday said that the move was given the go ahead by Cabinet following meetings among government, business leaders and labour union officials via a tripartite committee.
The minister said that a new minimum wage was implemented in 2012 for shopkeepers, fuel station attendants, restaurant workers and bar employees, but this move failed to cater adequately for other vulnerable groups.
“It was felt then that a national minimum wage would be the ideal thing, rather than just looking at certain categories. If you set a national minimum wage you would cover all these categories, as well as wipe out the anomalies which exist in the society,” Gopaul said Shift workers who are employed to work on weekends will benefit from a premium pay rate as the rate will be based on the fact that they work on weekends and holidays, regardless of whether they are over or under the regulated 40- hour work week.
“Those who are working under conditions less advantageous should be brought up to the minimum conditions at least. Those who are earning higher should continue to receive it,” he exhorted.
He added that it is an opportune moment for this action to be taken as, “The PPP/C has demonstrated its working class interest, and we have demonstrated that we are protecting and looking for our less fortunate privileged and workers,” Gopaul assured.
Under the new wage measure, no worker should be paid less than $202 per hour, $1,616 daily, $8,080 per week, or $35,000 per month, the minister said. With 40 hours per week catering for a five – day work week he said, “Should they be required to work beyond the stipulated work week, they have to be paid overtime in accordance with the various labour laws of the country”.
Gopaul said that the new measure addresses the fact that previously, many workers were not privileged to earn overtime, “holidays with pay, leave with pay and they were not privileged to earn minimum wage based on stipulated working hours. They were exploited for 12 and 13 hours per day, they were exploited for a longer working week, and they weren’t given anything. We thought that by doing this, we would regulate a relationship between employer and workers…those who we found to be the most exploited in this country, they will benefit from this introduction (new minimum wage)”.
It was acknowledged that government workers enjoy a relatively higher salary scale which amounts to approximately $50,000 per month. This rate is driven by collective bargaining agreements between the government and trade unions, the minister said.
“We didn’t want to put the national minimum wage to the public sector because for us to do that would put the private sector under pressure especially those who are struggling… that is why we work with the private sector and trade union officials to find a good balance,” Gopaul disclosed.
According to the minister the implementation of the new minimum wage will be monitored and would be adjusted upwards if necessary. Public support for the new wage scale has been good, and some have called for even more to be paid as they find it hard to attract workers at current pay rates, said the Labour Minister.
All the trade unions and business leaders are also in agreement, he added and this has set the stage for trade unions to further bargain for betterment of their employees.
The implementation of the new wage standard will also be monitored by officials of the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS) as they interact with workers and employers regularly, to ensure compliance.
“If workers are happy and prosperous, you will be prosperous, if workers are happy and continue to be motivated, the country will benefit, so we are working for a common goal and a common objective” he stated.
In January, Government established a ministerial team to work to fine-tune the necessary procedures that would facilitate the establishment of a national minimum wage. This effort was led by Gopaul.
This initiative is strongly supported at the level of the tripartite committee which consists of government officials, representatives from the various labour organisations and the private sector.