COVID-19 could affect minimum wage increase in private sector   
Labour Minister Joseph Hamilton
Labour Minister Joseph Hamilton

LABOUR Minister Joseph Hamilton said the impact of COVID-19 on businesses may affect a proposal to increase private sector minimum wages when a new tripartite committee is formed to look at the issue. 

The minister noted that at the current stage, discussions are ongoing for the establishment of a new committee, as the lifespan of the old committee has expired.
The committee will constitute representatives from the Ministry of Labour, the private sector, and the two umbrella trade union bodies: The Guyana Trade Union Congress (GTUC) and the Federation of Independent Trade Union in Guyana (FITUG).

“We are about to establish a new tripartite committee; hopefully, in the next couple of weeks, we will have that committee in place. We are now determining the representation and, hopefully, very shortly, I will have that announcement of who the committee will consist of,” Minister Hamilton said in an interview with the Guyana Chronicle.
When formed, one of the first things the committee is expected to discuss is the resuscitation of a proposal that was started last year to have the private sector minimum wages increased from $44,200 to $60,000.

Addressing this situation was among some of the first things highlighted by Minister Hamilton when he assumed the ministerial position in August, when the People’s Progressive Party/Civic (PPP/C) assumed office that month.

As pertains to how soon the initiative could be rolled out, the minister noted that the private sector has indicated the need for consideration of the economic strain that the COVID-19 situation has had on the businesses, and how it may affect their ability to pay increased wages right away.

“At the level of the union representatives, they would want the decision to be made now; at the level of the business community, they have put on the table before me the fact that the COVID-19 pandemic has affected their business substantially, so I would have to take that into consideration,” the minister noted.
He added: “The issue now is when to implement, but when the tripartite committee is re-established, that conversation will conclude there and then, and I would be better advised on the way forward.”

The private sector minimum wages has not increased since 2017, when it was raised from an hourly rate of $202 to $255, taking the monthly salary from $35,000 to $44,200 for a 40-hour week. Comparatively, the minimum wages for the public sector is currently $70, 000.

VASTLY CHANGING
Last year, Consultant of the Labour Department, Francis Carryl had concluded that the economy was vastly changing, and another increase is crucial.
However, over the past few months in Guyana, many businesses have had to either shutter their doors, or effect major cutbacks to remain in business. With finances tight, many have also even had to ask employees to take pay cuts so that they could afford to keep them employed.

Calls to Chairman of the Private Sector Commission Nicholas Boyer for a comment on the matter were unsuccessful.
Though not entirely dismissive of the possibility of delaying the implementation of the increase, President of the GTUC, Coretta McDonald said the union would be looking for a finite timeline of how soon it could be rolled out.

“We need to have a definition for when; we can’t just leave it in open space; we need to define it so that our members can be assured that this increase will be done at a particular time,” McDonald noted.

She, however, commended the private sector for being onboard with plans for an increase in salary.
“We are happy that the private sector is on board to pay the minimum wage, and we look forward to having many more engagements with the private sector. We are hoping that many more of the benefits that the public servants are receiving that private sector employees can enjoy. If not all, most,” she related.

Calls made to President of the Federation of Independent Trade Unions of Guyana (FITUG), Carvil Duncan for a comment on the situation were also unsuccessful.
When formulated, aside from looking into the minimum wages increase, the tripartite committee will also serve to address all labour matters pertaining to employment in the private sector.

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