DIPCON owes workers $5M in severance pay …Broomes brokers deal for settlement
Minister within the Ministry of Labour Simona Broomes addresses the concerns of DIPCON workers as representatives from the ministry and DIPCON look on
Minister within the Ministry of Labour Simona Broomes addresses the concerns of DIPCON workers as representatives from the ministry and DIPCON look on

DIPCON Engineering Services Limited has entered into an agreement with the Ministry of Social Protection, Labour Occupational Safety and Health Department, to pay retrenched workers some $5M over the next three months.

The agreement, signed yesterday, came on the heels of complaints made by some twenty-four employees of the company over the past few months for the non-payment of severance money.

Minister within the Ministry of Social Protection Simona Broomes met with two representatives of the company and six aggrieved workers at the ministry’s boardroom yesterday morning.

The minister said following complaints by several workers, Dipcon Engineering was invited to a meeting where it was revealed that the company has some financial troubles.
PAYMENT PLAN
Notwithstanding those issues, the minister made it clear that the workers must be paid. On Friday last, the ministry and the engineering company agreed upon a payment plan that would see workers receiving payments commencing October 9 and concluding December 4.

“We have arrived at a decision in terms of payment…Payment will commence on the 9th October and payments will be made through November and December. The payments will be made at this ministry,” said Broomes.

The minister noted that she understands the frustration of the workers but asked them to exercise patience. “I understand that you don’t want part payments but the first payment will be just over $1M… we have a list, and we are going to call you…you don’t have to come, we are going to call you to come here to receive your money,” she told the workers who are eager to receive their monies.

Broomes expressed regret that Dipcon is not in a position to “bring all the money at one time” but said the company has committed to bringing payments to the ministry as they receive same even if it is before the scheduled date of October 9.

“If the company gets money before the 9th, the money would be released before… we will call you… this is something I inherited, and I regret this but you will be paid,” she said.

The Social Protection Minister stressed that it is her responsibility to ensure that Dipcon fulfills its obligation to the workers. “You must be paid, I regret not having money to pay you now,” Broomes stated sympathetically.

NOT PLEASED

But even after the minister assured the workers that they will be paid, the workers were not entirely satisfied. One employee, Talesh Narine said he was laid off at the end of June this year and Dipcon owes him a substantial amount of money. According to Narine, he is owed salary for the month of June, severance and leave passage.
“I have to pay the bank… they have a little over $1M for me… How can I get that money?” he asked Minister Broomes. The frustrated Narine said he has a family to maintain and can ill afford to be without his much-needed finances. He was advised by the minister of other methods that can be employed to retrieve his money if he cannot wait.

“The method of the law is always there,” Broomes said, noting that she too is not pleased. “I am not happy that you are not paid… not at all… the company knows that.” She said that the current administration is policy driven and will not allow any contractor to take advantage of workers. “We will move to have such contractors blacklisted,” she added.
“We need to get our families fed… I owe the bank, what do I do? Minister, can you make an agreement with the bank for me?” Narine quizzed Minster Broomes who immediately said that his agreement with the banking institution is a private one and she cannot get involved there.

“You can take private action but you cannot ask me to make arrangements at the bank… I don’t have an arrangement at the bank,” Minister Broomes said affirmatively.

The minister informed the gathering of workers that it was her ministry that called them for a meeting and it shows that she has their interest at heart. “I called the company… you did not come to me… it tells me that people are in trouble… I started negotiating without you,” she said.

Meanwhile, another aggrieved worker, Eon Sancho said he will be leaving the country shortly and wishes to receive his money before he departs. He is owed $72,267. Over the past few months, Sancho has found himself petitioning the relevant authorities as well as President David Granger on the matter.
“I am leaving on Friday… is it fair to wait until I return to receive my money… I was the first person to complain in May, then in June again,” said Sancho. He too was assured of his money though it is unclear when within the three-month period it would be received.

Garry Westford, a resident of Essequibo explained that the current arrangement only covers fortnightly workers. He told the minister that his name was not on the list presented to the Ministry of Social Protection. According to Westford, he was “reliably informed” that Dipcon received payment from the Ministry of Agriculture for work done on the Hope Canal. This, however, was not confirmed.
“Daily and fortnightly workers are a small percent… what happens to monthly workers?” he asked.

However, a representative from Dipcon said that several checks were made with the Ministry of Agriculture and Surendra Singh of Surendra Engineering Company but was told the matter has since been directed to the Ministry of Finance. “My boss went to the CEO of NDIA… to get the outcome and was told that the matter has to go to the Ministry of Finance,” the representative stated.

While the minister remains positive that all payments will be concluded by December 4, 2015, Westford is not. “I don’t see where the money is coming from to pay workers over the next three months,” he said.
NON-PAYMENT OF TAXES, NIS
Security Guard, Mohamed Ishmile said he works 12 hours every day but is only paid for two and a half hours. He sought some recourse from the ministry as he felt it was unfair to him and other security guards employed by Dipcon.

Minister Brooms in response said “no person should be working more than eight hours each day…the law says you work four hours, you take one hour for lunch and then you work the remaining four hours, anything over the eight hours, you must be paid for.”

NIS & PAYE DEDUCTIONS

Meanwhile, Sancho said that National Insurance Scheme (NIS) contributions along with Pay-As-You-Earn (PAYE) taxes have not been paid to the relevant institutions. His statement was seconded by his colleagues. “Contractors cannot continue to work here and not pay NIS and taxes for workers…but those are being deducted. That is fraud and they should be jailed,” she stated empathically.

The workers expressed reluctance to collect cheques from the company, noting that in the past they experienced bounced cheques. Dipcon Engineering Services Ltd. touts itself as a “premier regional indigenous general construction firm in the Caribbean” that was founded in 1980.

“We have been successfully constructing roads, highways, bridges and infrastructural developments throughout the Caribbean. Our clients have been mainly governmental but private developers and competing contractors have built long-lasting relationships with us. The company has been involved in some of the Caribbean’s biggest road projects,” the company’s website stated.

In Guyana, Dipcon Engineering was awarded a contract to work on Phase One of the four-lane extension from Providence to Covent Garden. The company was also contracted to work on a section of the East Coast Demerara highway for the four-lane continuation up to Mon Repos and the $3.6B Hope/Dochfour Canal.
By Ariana Gordon

 

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