Just two weeks after saying the Cabinet was awaiting a “holistic paper” from Minister of Labour Joseph Hamilton on the views of stakeholders on the proposed $60,000 private sector minimum wage, President Irfaan Ali on Thurs-day announced its official approval of the increase.
The disclosure was made at the 74th commemoration of the Enmore Martyrs at the Enmore Monument by Ali amidst a charged exchange with GAWU President Seepaul Narine, who in his address reiterated the trade union’s calls for the approval of the national increase.
“The Cabinet has agreed with the recommendation of the tripartite group and we are in support of the minimum wage that is going to be established, that is the $60,000 minimum wage. We are friends of the workers. We are not enemies of the workers. We want what is best for the workers,” Ali said in the feature address.
Ali did not mention the paper in his presentation on Thursday.
The approved hike in minimum wage will benefit close to 10% of private sector employees. The issue has come in for more scrutiny of late in light of the rising cost of living, including higher food prices.
Hamilton, in a telephone interview, said he will be consulting with Attorney General Anil Nandlall in the new week to be guided on the way forward. Once that is done, he will be taking the steps necessary to issue the order for the increase.
He noted that he could not act immediately on it since he is in Region Two conducting outreaches on labour matters.
The announcement of the approval has been welcomed by the Private Sector Commission (PSC) and the Federation of Trade Unions of Guyana (FITUG).
PSC Chairman Paul Cheong yesterday said the private sector is in full support of the hike and during consultations with members there was a unanimous agreement.
He explained that not only would the increase be beneficial to persons earning less than the $60,000 but employers also.
“It must be seen as an investment in their employees. This increase will serve to motivate and improve the quality of service a business offers. You will see the benefits in the long term,” Cheong said.
Cheong also mentioned the need for periodic review of the national minimum wage limit. The PSC Chairman pointed out that with the steady rise in cost of living, a review should be done to ensure salaries are livable for employees.
Narine, in his address, emphasised that higher wages and salaries are necessary, given the current rising cost of living.
“At this time, we believe a higher wage is necessary, given current circumstances, but we believe the long-outstanding improvement will allow our low earners to breathe a little easier,” he said as he alluded to the fight of the Enmore martyrs for improved working and social conditions.
In a statement yesterday welcoming Cabinet’s approval, FITUG said it was hopeful employers would be compliant with the new minimum wage. The statement said, too, that in anticipation of the order being made, employers should not use their obligation to meet the increase to reduce employment.
Against this background, the umbrella union body urged the Labour Ministry to undertake appropriate sensitisation activities to ensure that both employers and employees are aware of the changes.
FITUG added that it expects careful analysis be conducted on the effects of the new national minimum wage in the period after its implementation. “Certainly, there is always a need to ensure that our nation’s workers are not paid poverty wages, but they are able to meet the basis expectations of life in our rapidly developing country,” it added.
The statement stressed the union has long shared the view that the present minimum was woefully inadequate and there was a need for an upward adjustment.
“This became even more necessary given the spiraling cost-of-living, which has largely been influenced by exogenous factors. Though we recognised and appreciated the efforts of the Government to bring relief to our citizens, we contended that the improvement in the [national minimum wage] would be more meaningful,” FITUG asserted.
Earlier this year, the Labour Ministry announced that based on a discussion of the minimum wage by the National Tripartite Committee, it was “unanimously agreed that it be moved to $60,000 GYD.” With the trade unions and private sector both giving their blessings, the matter was taken to Cabinet for deliberations.
During an engagement two weeks ago, Ali had said Hamilton had not brought the full paper on the proposal to be discussed before Cabinet. “You know the private sector had views on this issue. We asked the minister to have wide consultation to bring together the views of everyone then present a holistic paper. The minister still has that responsibility to bring a holistic paper,” Ali said when asked on the delay on the implementation of the minimum wage.
More recently, sections of civil society and the trade union movement hosted peaceful protests outside of the Ministry of Labour on Brickdam to press government to approve the increase.
In a recent statement, civil society group, Article 13, called for an interim hike to $75,000 per month.
In the statement, the group noted that the current national minimum wage, of $255 per hour, $2,040 per day, $10,200 per week or $44,200 per month, was set in 2016 and became effective from January 1, 2017.
Even as a stand-alone number, Article 13 said that the national private sector minimum confines those affected groups to a life of poverty for them and their children which cannot be remedied by any number of hampers or cash grants. By its failure to address the problem of the minimum wage, the government is effectively subsidising the employers who are relieved of their responsibility to pay their employees a just wage, the statement said.
Trade unions at last month’s Labour Day observances renewed calls on the government to move ahead with the implementation of the increase.
The Federation of Independent Trade Unions of Guyana (FITUG) at its rally on May Day voiced its disappointment at the delay in the implementation of the new minimum wage order.
It has been more than two years since government, labour and the private sector have been discussing the minimum wage.
