Labour ministry engaging itel on workers’ severance – Hamilton

Following media reports of itel Guyana’s plan to cease operations locally, affecting more than 400 hundred workers, the Ministry of Labour has engaged the Business Process Outsourcing company on workers’ severance pay.

During an interview on Wednesday, Minister of Labour, Joseph Hamilton told the Department of Public Information (DPI) that his ministry is working with the call centre at Camp and Robb streets, Georgetown, to ensure that the affected workers are properly compensated.

The ministry will also assist in finding alternative employment or training opportunities for the staff.

“The local management has indicated that, one, there is discussion and conversation about severing, the number at this moment is not a definitive number. Secondly, the principals of the company will reach out to the ministry soonest.

“They would be in a better position to advise us about what their plans are. They have been advised and instructed by the Ministry of Labour about the necessary procedures they would have to follow,”  Hamilton stated.

He said that the company has to formally notify the Chief Labour Officer one month in advance before the severance, and make available a list of all the persons who are to be severed including their remuneration package.

This will allow the ministry to do the necessary calculations to ensure the offer is adequate.

“All is not lost…We have the Central Recruitment and Manpower Agency that could be of assistance to persons who might have an interest. We have our job bank, where persons can put up their credentials and seek employment. We have about 300 companies that are registered at the job bank. There is a lot of options that people can explore,” the labour minister told DPI.

He noted too that the government has built call centres in different parts of the country and this can also be an opportunity for employment.

Just some three-plus years after establishing its large customer call centre in Guyana, Jamaica-based itel  told staff on Tuesday that it plans to close its operations in the country.

In 2021, itel, a customer experience provider led by Founding Chairman and CEO, Yoni Epstein, and headquartered in Montego Bay, Jamaica, revealed its acquisition of Emerge BPO, a business process outsourcing company here. While Epstein’s itel is winding up here it is expanding in Jamaica.

In an internal message to its staff  on Tuesday, the company said that the decision followed extensive analysis and discussions among its leadership.

Despite significant investments over the years, the company’s management disclosed that its Guyana operations are no longer sustainable. While itel described Guyana as a “gem”, it pointed to ongoing challenges despite the nation’s continued economic growth. As Guyana’s economy expands, the rising cost of doing business has made it increasingly difficult to find and retain qualified candidates, according to the company.

Itel explained that these challenges have impacted its ability to attract and retain Fortune 500 clients, which are crucial to maintaining a steady flow of business for the centre. It also revealed that despite efforts to reduce costs and engage the workforce, it has struggled to overcome these hurdles.