Economic situation forces businesses to retrench countrywide
Over the past few weeks, reports have emanated which suggests that companies in Guyana are taking measures to get rid of some of their workers due to the apparent “slow down” of the economy.
PSC Chairman, Eddie Boyer
These reports are coming from Berbice, Essequibo, Linden, Georgetown and other parts of the country which suggests that the situation is countrywide.
Some businesses have resorted to laying off staff whilst some have reduced the number of working hours allotted to each staff member.
Some business owners are positing that the economy is not doing so well and these difficulties being experienced are evidence of this.
Yesterday, the Chairman of the Private Sector Commission (PSC), Eddie Boyer, said that there is indeed a slowdown in the economy. He could not comment on the extent of the slowdown but expressed hope that the economy will “right itself”.
He added that the Commission will be meeting shortly with the Minister of Finance, Winston Jordan.
Efforts to contact the President of the Georgetown Chamber of Commerce and Industry (GCCI), Vishnu Doerga, were futile.
However, according to reports, the body would have already had engagements with the Finance Minister.
Also, over the past few weeks, Kaieteur News was visited by frustrated workers, many of whom claimed that they were laid off despite serving a particular company for years without receiving a “severance” package for their service.
GCCI President, Vishnu Doerga
Yesterday morning, one popular Water Street businessman, who requested anonymity, said that he currently has 200 workers and has tried ‘numerous times’ since Christmas to lay off some but could not.
“I called some of my workers in my office a few days ago and I began telling them about how business is getting worse and one of them started to cry. So it’s hard especially when you have people working eight, nine, 10 years with you.
“They become like family and to tell them that you can’t afford to keep them is you know…”
Cutting down on working hours is not an option for now but might be in the future, he said.
“It doesn’t make sense. Some of my workers come from far. Nobody wants to spend an hour to come to work and only work four hours and then spend another hour to go home. Cutting their salary is an option but not one that we are ready to take. I guess we will have to wait and see.”
A Regent Street food importer told Kaieteur News that he has opted to reduce the number of containers he brings into the country.
The Importer argued, “I don’t want my workers to read tomorrow that I (am) trying to get rid of them. I had to cut the salaries for some of my workers by 10, 15 percent. One (worker) told me the other day that I’m taking back the bonus I give for Christmas…It’s really hard.”
The Importer was asked whether the new tax measures that were imposed are having an effect on consumer spending.
“The almost 200 new tax measures is one thing but if you look at what is going on worldwide.
Finance Minister, Winston Jordan
There is a slowdown all over. Trinidad is actually worse than Guyana. Liberty Avenue in the States, there are businesses closing down every day and a lot of Guyanese people depend on support from their families abroad but now it is almost the other way around.”
Some Security firms are also complaining that they are severely affected by the state of economy and have been left with no choice but to take certain drastic measures.
While some security firms have already started laying off workers, others are trying as much as possible to hold on to their staff. Some companies however have cut back on salaries. In other cases, salaries which used to be $70,000 have now dropped to $38,000 to $45,000.
In this regard, companies have noted that the drop in salary has led to the attraction of a lower quality of people.
“The basic qualifications that we would require are five CXCs for persons applying for a job with our firm. But what can I do in this situation; I have to take what I am getting especially when I am paying $38,000 to $45,000. The economy is forcing businesses to take these drastic measures. We don’t want to do this but what choice do we have? We have to survive,” expressed the proprietor of a popular security firm in Georgetown.
Several companies which Kaieteur News interviewed in the City are also experiencing the same difficulties.
Further, several multi-billion-dollar companies have opted to reduce their workforce reports have stated. One Manager also told this publication that transportation that was once offered free to staff had to be pulled.
