Guyana Power and Light Inc. (GPL) workers represented by NAACIE are due wage increases of up to 6% and company CEO Bharat Dindyal says it will soon be in a position to give a timetable for the payouts.
The Arbitration Tribunal charged with determining fair and equitable compensation for workers after failed negotiations between GPL and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) noted that the company was “suffering much loss,” but nonetheless recommended the wage increases, retroactive from January 1st 2013.
In a 13-page report, the Tribunal, which comprised Dr. Gobind Ganga, Grantley Culbard, and Justice Prem Persaud, who functioned as its Chairman, determined that Grade GE 1 workers—those lowest paid—would be granted an increase of an “all-inclusive 6% per annum” while Grade GE2 to GE8 would receive an “all-inclusive 5.5% per annum,” both retroactive to January 1st 2013.
These amounts, according to the Tribunal, were arrived at after considering what was fair and equitable to GPL’s employees, and several other factors. The Tribunal did not designate a deadline for these payments to be made, however Dindyal has said that the company will soon be in a position to say when the payments will be made.
“The Terms of Reference (TOR) was jabbing us in the direction of the affordability of the company. We take into accounts also that the rate of inflation for year 2012 was 3.5%. We take that into consideration but we also consider what may be fair and equitable to workers. We consider it fair and just to take into account that the workers at the lowest grade use most of their income for basic needs, and do find it more difficult to sustain their living standard in the face of rising prices,” the Tribunal’s report said.
NAACIE General Secretary Kenneth Joseph has stated that the Tribunal’s findings have vindicated the Union’s position.
The Tribunal, which was set up by Labour Minister Nanda Gopaul after GPL and NAACIE failed to meet a bilateral agreement, was tasked with: determining the Status of the Collective Labour Agreement entered into between the Guyana GPL and the NAACIE on 27th November, 2001 and in particular, whether clauses 1-3 of the agreement are still in force; determining a fair and equitable treatment for compensation for 2012 having regard to the GPL all inclusive offer of a five percent increase, taking into consideration the financial economic position of the company; and investigating NAACIE’s claim that clause 52 of the Agreement on “Contracting out” is being violated by the company. In relation to the status of the CLA, it found that the 2001 agreement entered into by the two entities in 2001 was indeed enforceable, albeit not by law. In the report, the Tribunal explained that the agreement was not deemed to be legally enforceable, but amounted to what they referred to as a “gentleman’s agreement.”
“Clause 56 states that the agreement shall not be deemed to be legally enforceable. What this means is that the document/agreement has no legal force” and cannot be enforced by the union. This agreement, between GPL and NAACIE, was honoured from 2001 to 2003.
The Tribunal noted that Clause 55(b) of the CLA, which stated that “in the even that agreement on a new agreement is not reached by December 31, 2003, the Agreement shall remain in force until negotiations are complete on a new agreement which shall be effective January 01, 2004.” After this period expired the two bodies entered into mutual agreements for wage increases, which both parties admitted were not strictly adhered to. As such, since no other formal agreement was entered into since 2003, the 2001 agreement was still considered to be in force.
On its second mandate, the Tribunal found that despite GPL’s financial conundrum, NAACIE represented workers still should benefit from increases. “The tribunal recognizes the company’s financial position, which shows a budgeted deficit of $4.3 billion for 2013 with total accumulated deficit projected to be $12.4 billion by the end of 2013, may not, prima facie, allow for an increase in salary to workers of the company.”
The Tribunal, however, noted sustained payments to senior officers despite the company’s financial woes. “GPL is suffering much loss yet the senior officers benefit without any reported reduction in the losses suffered by the company,” it observed.
“It is worth nothing that the Union has submitted that the total employment costs are $2.2 billion with a staggering $318 million going to 32 key management personnel,” read the report. In light of these figures, the Tribunal recommended that the company revert to the “drawing board” in an effort to come up with a “win-win” situation for itself and its employees.
GPL has argued that part of its financial hardships were due to the extremely high fuel prices which currently persist. This factor, the company argued, has caused it to incur large deficits over the years. The Tribunal however, found that while the deficits were highlighted, “the question of profitability was not canvassed but we wish to say it does not mean that the workers should be made to suffer and not attract a fair and reasonable income.”
On their final mandate, the Tribunal stated that it did not find that GPL to be in violation of CLO clause 52 as it relates to “contracting out.” NAACIE had complained that the company was in violation of this clause.
“It is important to note that the jobs the Unions claims that are offered to persons on contract are concerned with metering. However, for the company to be held in violation of the Clause there should have been evidence that the company did not have prior discussion with the Union and secured its agreement to such a course of conduct. The company’s case is that it did not breach the condition with respect to “contracting out,” and we have no evidence to challenge or contradict this.””
As such the Tribunal found that this particular objection was not properly established.
