The Private Sector Commis-sion (PSC) has raised concerns about government’s reluctance to renegotiate contracts already approved to accommodate wage differences since the implementation of the new minimum wage.
“It must be clearly understood that the increase in the minimum wage will result in increased costs for businesses and at least some of those costs will have to be passed on to their customers if the businesses are to remain viable,” the PSC said in a press release on Friday, while calling on government to consider renegotiating the affected contacts in a timely manner.
Only recently, owner of RK’s Security Roshan Khan announced that his company would terminate all of its government contracts because of the implementation of a new minimum wage and the 40-hour work.
CEO Roshan Khan stated that the new minimum wage of $35,000 per month had made it impossible to operate the contracts. He also told Stabroek News that he did not have a problem paying the new wage but felt that government, if it wanted it implemented, should adjust contracts so that the wages could be met. “I have no problem with government and I am in no way angry…I am just asking that if you want us to increase, pay us the difference so that we too can increase because these contracts were before this implementation,” he said.
The PSC had earlier raised concerns that security contracts and other agreements drawn up using the pre-minimum wage rates would be in jeopardy.
In addition, the organisation said in its statement that it was being painted negatively on the issue by government. “The Private Sector Commission is gravely concerned over the recent pronouncements by the Minister of Labour and his Chief Labour Officer about the acceptance by business of the new Minimum wage and the portrayal in a negative light of those businesses which it impossible to carry on business as usual,” it said.
The PSC statement was prompted in part by Minister of Labour Dr. Nanda Gopaul, who on Thursday maintained that government will hold firm to its 40 hour-work week and national minimum wage despite criticisms from private employers. “The regulations will not change. Workers are entitled to and should benefit from their hard labour…Employers must respect employees’ hours. Beyond eight hours without pay is slavery and work for less than $US50 is unacceptable,” he said on Thursday, at the closing ceremony for the School Retention and Child Labour Prevention Pro-gramme at Kuru Kuru.
Gopaul said employers do not complain when “things are bright” but are quick to find excuses when faced with an increase in wages. To this end, he underscored the importance of the Trades Union Movement to workers rights and urged that the movement support the government’s stance.