RUSAL seeks govt order before paying tax-free overtime

THE Bauxite Company Guyana Inc. (BCGI) has retreated from its earlier decision not to pay tax-free overtime to workers, but instead is now seeking a government order before they carry out the decision by the government.BCGI-a subsidiary of Russian Aluminium (RUSAL), had refused to sign on to the tax-free overtime agreement, saying that it does not support the workers’ representative-the Guyana Bauxite and General Workers Union, as a signatory to the pact.

Minister within the Ministry of Social Protection, Keith Scott had confirmed this saying that they do not agree with the approach being taken. Scott said that the company had proposed a different approach to treat with the issue and discussions were being held currently on the matter.

In August, Minister of Social Protection, Volda Lawrence had said that the tax waiver was a done deal, but while BOSAI and Oldendorff Carrier have signed onto the agreement, BCGI is withholding its signature. Tax-free concession on overtime work was implemented in 1988. This concession was enjoyed by workers up until 2007, when it was taken away by the People’s Progressive Party (PPP) Administration. The move by the PPP Administration had adversely affected the earnings of bauxite workers from Linden and Kwakwani, and was viewed by critics as a punitive exercise for not supporting the PPP.

On Wednesday at the Bauxite Centennial Symposium held in Linden, one BCGI worker, Elymawell Barkoye posed a question to Natural Resources Minister, Raphael Trotman in the presence of his superiors, asking when the workers will be granted the tax-free overtime. Trotman in response said that BCGI has asked for an order from the Ministry of Finance before following the mandate. When this is granted Trotman said that the workers will be paid retroactive for the period the tax exception should have been granted. “So there has been a commitment, it is a matter of having it done legally, “Trotman said.

The Minister said that his Government will not allow foreign companies to disrespect the laws of Guyana and the workers that serve them. This position he said was made clear to both companies on several occasions and will not change. “I’ve said that the government’s position is that one: we must respect the laws of Guyana, two you must respect the contracts of agreements you entered into with the Government of Guyana and thirdly you must respect the workers of Guyana, that position is not going to be changed at all,” Trotman posited.

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