Dear Editor,
Guyanese poor are asking questions as to why they are not progressing more rapidly especially with the current oil boom. Uncapped minimum wage increase tend to lead to higher prices for people as businesses factor in the higher labour costs into providing goods/services. The poor do not really see any benefit with the minimum wage increase as their newfound wage rise is inflated away. Time and again, this has happened in Guyana.
A Government, any government, needs to address inflation and not shirk its responsibilities by giving big, headline-grabbing pay award. Yes, people deserve better pay. But there is a need to increase productivity then increase wages once the vast majority of the population is working.
Until then, pay awards of 2.5% is sustainable; not the ridiculous amount that pushes up inflation leading to the need to increase wages again and again eventually leading to devaluation which brings with it higher prices. The problem is the politicians awarded themselves 50%. Now I read about some people wanting 20%.
It is ridiculous for some people saying that they cannot survive on over $1m per year, especially with all the fringe benefits they’re getting, when some Guyanese are surviving on under $1m per year. Pushing up wages by 20% may lead to a wage-inflation spiral meaning hardship for Guyanese.
Sincerely,
Sean Ori