I WISH to state  clearly that I have no issue with the raising of the minimum wage as I indicated in the press conference on July 10th. 

As a matter of fact, I had letters published in the media earlier on the issue in which I stated that the sum being granted to workers across the board should have been doubled, and that we totally agree with the increase, refer to Kaieteur News letter section June 4th  ,2013; Chronicle, June 4th, 2013. I am most happy about this $62 increase and last year’s $40 increase.Last year’s increase was absorbed in our system and no increase was sought for this from Government.

While I state that the time to prepare is short, our disappointment is not with that.  Private sector business people cooperated and worked with us.  Most of our private sector are also trying to work with us on this new increase.

The psychology in tendering for Government contracts, being provision of labour or whatever, is to work to keep the rates to the lowest, while not losing, hence, when wages are increased suddenly, and Government in particular does not wish to cooperate and adjust their contracted sums, it creates a crisis, especially for legal and law respecting companies, such as RK’s, as we fully pay all time-and-a-half over 8hours, comply with the NIS and do not manipulate the VAT or the PAYE, as many companies in business are known to do.
We at RK’s are proud of this.  Some security services amazingly are known to operate their own NIS, paying for a few and then at times when guards are ill or pregnant, give them some cash to hush them up.  We cannot do such things.  Another security firm is known to pay $110-130 per hour, for eight hours, in the books, and then having them sign for $140, and paying anything over 8hours at flat $140 but paying cash.  And only one company in this country is known to be doing things like this and other deceitful acts, as we have seen in the media recently, including supplying forged GRA compliance and still permitted to tender below costs.

With all of the above and below in mind, Guyanese have seen numerous works contracts, be it Amaila Falls, highways, hospitals, and numerous more at times being re-adjusted to accommodate increase costs of materials and equipment.  Why this refusal and difficulty?

We believe that if a Government decides to increase the minimum wage, which we never had an argument or disagreement with, that they in turn should increase their rates for labour contracts.

Simple as that!  My disappointment is that the Government insists that it will not increase the contracted sum to accommodate the increase it has instituted.  It exposes a side and personality of the Government that shocks me.  I am surprised at this, and I note many people are surprised at this.  This is not a good thing it is doing.

We have no objection to the 40-hour work-week, which is great for Guyana and which brings us in line with the ILO stipulations.  This is good for our country.  Further, I still think the increase to $200 per hour is not good enough, and record here that it should be $300 or $400 per hour, but the Government must adjust on its side as well as on the contractors.

Further, when minimum wages are increased, the entire work structure is expected to be increased accordingly.

RK’s have things in place to absorb all our ranks with new private sector contracts, and proving eight hours only at some locations.  Our ranks are most cooperative and they know RK’s will do the best we can to keep them employed.

I should state also, that while we provide service to Government contracts, we also provide service to many private sector organisations and businesses.  Hence, we are a most viable and dynamic institution.  We are using this as an opportunity to reorganise and take our service to a higher level and standard, even with the wages.  While the minimum wage is an issue, we always pay different rates for different personalities, talents, and qualifications.

I hope this clears the air.

But why is the Government so adamant about not wishing to adjust the contracted amount to accommodate the increase?  This I cannot understand.

I am unaccustomed to politics.  Plus I am not quarrelling with the Government, merely to clear the issue, and show our side, hoping to pull their realisation so that they would do the right thing.  Our business has always been hinged with Government on a major part, and we are always grateful for it.

Our rates were charged to suit the wages at the moment of tender plus all expenses that goes with it, one cannot charge catering for future increases, therefore, it is kept at the lowest.

It is so disappointing to me that Cabinet and Government in general cannot understand what I am saying, and how it affects companies such as ours, especially one that fulfils all legal obligations, and never does anything to trick the system, as a major player and contractor is known to do.

RK’s usually win about 10% or less of contracts, as we can never under-charge merely to win, and then manipulate the system, as several companies are known to have done over the last two decades, even (allegedly) stealing NIS to the tune of billions of dollars, and affecting hundreds, even thousands of lives, and helping to create a mess in the NIS structure.

I wish to state again, I am terminating the contracts as it would create a crisis and we may be forced to do dishonest things we are not accustomed to doing.  Therefore, it is better to let the contracts go for now.I am sorry to the various Government locations we have served for many years, and respected friendships and I am sad if some may be disappointed that we have to leave in this manner.  But under the circumstance, it is the best thing to do.

Everyone we speak to are surprised that the Government will raise wages, and with the increased NIS, they will not consider raising the basic. So is the undersigned.  It is my hope that the Government realises that they are making a mistake here.  It looks bad in the public eyes locally and internationally.  Sad! Sad! Sad!