Despite its long and illustrious history of trade unionism and its socialist pretensions, as a country we have signally failed to provide to our workers what could be considered a living wage. Tracing this to the problems of colonialism hardly helps when Guyana is now confronted with exploitative capitalism. It is a sad reflection that the public sector minimum wage of $70,000 per month is 59% higher than what applies in the private sector which calls itself the engine of growth. It is unlikely that anyone can live a reasonably good life (APNU+AFC) or enjoy prosperity (PPP/C) with such starvation wage and yet we do nothing about it.
It is a real stain that any Government would tolerate this situation and sad that the Budget Speech was completely silent on the matter, particularly since an increase in the minimum wage was one of Labour’s submission in the recent consultation. The situation is not only heartless but also messy and reflective of complete insensitivity and ignorance about what is described as the national Minimum Wage.
In 2013, completely oblivious of the labour laws, the then Minister of Labour upended the system of minimum wage. A national minimum wage does not exist in Guyana. Instead, minimum wage rates are set through Minimum Wages Orders made under the Labour Act and Wages Council Act. These laws provide that where rates have not been fixed by minimum wage orders, wages can be agreed upon by individual or collective agreement.
The most recent attempt at righting this shame saw the APNU/AFC government establishing a tripartite committee with representatives from the Ministry of Labour, the Private Sector, and Trade Union bodies negotiating an increased minimum wage. The current Minister of Labour would later inform that the then tripartite committee had proposed $60,000 as the new private sector minimum wage. However, he stated that the meetings of that committee were stalled and a decision was taken by the PPP/C Administration to reestablish a new committee which will immediately continue the discussion on the proposed $60,000 increase.
Almost on cue, the private sector objected, claiming that the sector does not have the ability to withstand an increase in minimum wage. On the other hand, the union representing public sector employees supported the case of the private sector employees, arguing that despite the Covid-19 slowdown, a minimum wage in the private sector of $60,000 per month minimum wage should be brought into law. Not surprisingly, the PPP/C Minister of Labour has since been silent.
The case for a minimum wage is both an economic one as well as a social one. The private sector argues that an increase in the minimum wage can hurt the very persons it is intended to help. While such an argument cannot be dismissed, it should be challenged. More money in the hands of the lower income persons will go back into the very economy to expand business and to increase employment. But this has to be an ethical issue, a human right issue.
The Government must take a stand on this matter and not be swayed or bullied by the private sector spokespersons. If as the President stated in defence of the oil companies, workers are also entitled to a fair return on their labour.
