Guyana Power and Light Company (GPL) workers continued protesting for higher wages and while their union and the company’s management remained at an impasse over the demand, Bartica, Wakenaam and Leguan were all without power up to last night.
For the second day in a row, workers took to the streets as part of indefinite industrial action organised by the National Association of Agricultural, Commercial and Industrial Employees (NAACIE), marching again from the Main Street office to the Executive Offices at Duke Street, Kingston.
NAACIE, GPL and Minister of Labour, Nanda Gopaul, are to meet today on the situation.
On Wednesday, GPL had said that the generation and supply of electricity had not been affected by the strike, but GPL CEO Bharat Dindyal yesterday admitted that both Wakenaam and Leguan were without electricity by Wednesday night and that the company was up to yesterday afternoon looking for persons to man those stations.
He said that while employees worked through Wednesday night to maintain power at Bartica, they needed rest and were unable to continue operations into Thursday, which affected power supply to the area.
Against the backdrop of the protest action, the company yesterday held a press conference, during which Chairman of GPL’s Board of Directors Winston Brassington reiterated that the company had recorded $5 billion in losses in 2012, despite soliciting $6 billion in subsidies and $5.35 billion in loans from the government.
He said that high fuel costs continue to cut deep into its profits and constitute the largest percentage of its expenditure. Brassington said that last year alone, the company spent $24.1 billion in buying fuel, while only raking in $29.3 billion from sales, meaning that a monumental 83% of GPL’s financial resources were put towards purchasing fuel.
The employees on strike, however, were unmoved by these claims, saying that with the increased cost of living, including the implementation of the Value Added Tax (VAT), what they currently receive is unacceptable.
One employee said, “We are not accepting any excuses. We will continue to fight and we will continue the struggle.”
“Inflation gone up 4.5% and VAT is 16%, and they only offering 1% across-the-board, we salary need to go up as well,” said another woman. Activist Mark Benschop joined the workers during the march and said his presence at the protest was to show his solidarity with the employees who deserve to be paid more.
GPL on Wednesday said that employees in the NAACIE category cost the company approximately $1.5 billion annually in remuneration, which constitutes its highest non-fuel expenditure, amounting to about $1.7 million per employee.
Considering these particulars as well as the company’s financial situation, Brassington labeled the union’s refusal to accept its 5% proposed increase for wages as unreasonable.
Nevertheless, the striking workers maintained that their call for an 8% wage increase, with automatic 3% annual and performance increment to be met, as was agreed in previous negotiations. They also said that GPL received a large loan recently, and has increased by 15% the salaries of its managerial staff. The company’s Chief Executive Officer, in particular, is said to be receiving US$12,000 in wages per month, and is to receive a substantial raise in the not too distant future. This they say is testament to the company’s ability to make the payments being asked of them.
NAACIE has in the past described some of the benefits being given to Dindyal as “outrageous,” saying the CEO’s basic salary is US$12,000 monthly, while there is an incentive scheme of 0 to 20% of the basic salary.
It also said there is provision by the company for the cost of housing, security and utilities up to US$2,500 per month, a fully loaded vehicle, fuelled and maintained by the company, in addition to the CEO and up to three members of his family being entitled to two business class return air tickets to the USA yearly.
‘Unaffected’
However, at the company press briefing Dindyal denied that the company received any such loan as described by the union’s workers. Dindyal said that loans have been received from Republic Bank as well as the China Exim Bank for several purposes but added that the amounts mentioned by NAACIE were never received.
He stated that even if loans were received by the bank, it would be impractical to use a loan to increase wage payments. Rather, it would be used to improve the company’s capacity to function.
Brassington refuted claims that any raise of pay was negotiated for Dindyal, and added that he would not discuss the specifics of the CEO’s contract.
Addressing the toll the strike action has taken on the company’s operations, Dindyal said outside of Bartica, Wakenaam and Leguan, generation and supply of electricity remained largely unaffected.
He explained that Demerara, which receives much of its electricity supply from Wartsila, is unaffected due to the fact that the power station’s management is handled by a contracted company. He also said that power stations at Anna Regina, Canefield, Leonora and Garden of Eden have continued operations throughout the strike and that Berbice, currently fed by GuySuCo, is also unaffected.
In relation to the loss of revenue, Dindyal said that alternative payment options ensure that the company continues to receive payments from persons wishing to pay their bills.
According to Dindyal, bill querying processes have, however, been affected since employees in this department are out.
He added that bill preparations have not been severely affected since much of this process is computerised.
Kenneth Joseph, General Secretary of NAACIE, said yesterday that the union’s support base in the “struggle” is increasing as the Guyana Public Service Union (GPSU) publicly announced its support of the union’s actions. In a press statement, the GPSU “has advised its members within its Bargaining unit (Junior and Senior Managers) that as an act of solidarity they should not perform any function performed by the Junior and Senior Staff of the Guyana Power and Light Inc.”
Commenting on the percentage of GPL’s workforce on strike, Dindyal said that on Wednesday, 351 of NAACIE’s approximately 700 members were on strike, while by yesterday that number dropped to 271.
He added that on Wednesday, five members of the GPSU heeded the call by their union to strike along with NAACIE members, while four continued their industrial action yesterday.
Brassington stated that GPL has been quite reasonable with the union in its offer for 2012, as was the case for the last seven years, when increases of 6% to 10% were proposed and accepted. He added that the offer of a 5% increase is more than reasonable, considering the fact that it is more than the company can afford to provide. A government subsidy will have to be solicited in order to pay the 5% which they have offered, he noted.
“The company simply does not have the money to pay the massive increase,” said Brassington, while maintaining that the company’s offer is fair.
He said that the company has always enjoyed a productive relationship with the union and that he hopes that such a relationship can once again be instituted.
Meanwhile, President of the Federation of Indepen-dent Trade Unions of Guyana (FITUG) Carvil Duncan, who also serves on GPL’s Board of Directors, also responded to claims that he had done nothing to represent the workers’ rights yesterday.
Duncan said that despite his position with FITUG, his responsibility on the Board is to ensure that workers are not exploited and that the company is democratically-run.
