The minister added that all categories of workers will also benefit from the national minimum wage that will take effect on July 1 – the first in post-independent Guyana.
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Employers who flout new minimum
wage to be prosecuted – 31,000
workers to benefit
Employers who flout new minimum wage to be prosecuted
- 31,000 workers to benefit
Georgetown, GINA, June 8, 2013
The Labour Ministry has been successful in the prosecution of employers who have flouted labour laws, and has recouped large sums for workers who have been exploited, and in this regard, Minister of Labour Dr Nanda Gopaul is cautioning employers to ensure their employees benefit from the recently set minimum wage of $35,000 which comes into effect from July 1.
He said those who are delinquent and pay their staff less than the national minimum wage will, if found guilty, pay a fine of $35,000 for the first offence. The second offence will result in a fine of $75,000 and one month in jail.
The recent decision by government to implement a national minimum wage will result in a higher standard of living, in addition to increased wages for approximately 31,000 workers.
Minister Gopaul, during an interview on the National Communications Network on Thursday, said that the move was given the go-ahead by Cabinet following meetings among government, business leaders and labour union officials via a tripartite committee.
The minister said that, a new minimum wage was implemented in 2012 for shopkeepers, fuel station attendants, restaurant workers and bar employees, but this move failed to cater adequately for other vulnerable groups. “It was felt then that a national minimum wage would be the ideal thing, rather than just looking at certain categories. If you set a national minimum wage you would cover all these categories, as well as wipe out the anomalies which exist in the society”.
Shift workers who are employed to work on weekends will benefit from a premium pay rate as the rate will be based on the fact that they work on weekends and holidays, regardless of whether they are over or under the regulated 40- hour work week. “Those who are working under conditions less advantageous should be brought up to the minimum conditions at least. Those who are earning higher should continue to receive it”. He added that it is an opportune moment for this action to be taken as, “The PPP/C has demonstrated its working class interest, and we have demonstrated that we are protecting and looking for our less fortunate privileged and workers”.
Under the new wage measure, no worker should be paid less than $202 per hour, $1,616 daily, $8,080 per week, or $35,000 per month, the Minister said. With 40 hours per week catering for a five – day work week he said, “Should they be required to work beyond the stipulated work week, they have to be paid overtime in accordance with the various labour laws of the country”.
Minister Gopaul said that the new measure addresses the fact that previously, many workers were not privileged to earn overtime, “holidays with pay, leave with pay and they were not privileged to earn minimum wage based on stipulated working hours. They were exploited for 12 and 13 hours per day, they were exploited for a longer working week, and they weren’t given anything. We thought that by doing this, we would regulate a relationship between employer and workers…those who we found to be the most exploited in this country, they will benefit from this introduction (new minimum wage)”.
It was acknowledged that government workers enjoy a relatively higher salary scale which amounts to approximately $50,000 per month. This rate is driven by collective bargaining agreements between the government and trade unions, the minister said. “We didn’t want to put the national minimum wage to the public sector because for us to do that would put the private sector under pressure especially those who are struggling… that is why we work with the private sector and trade union officials to find a good balance”. The implementation of the new minimum wage will be monitored, and may be further adjusted upwards if necessary, according to the minister.
Public support for the new wage scale has been good, and some have called for even more to paid as they find it hard to attract workers at current pay rates, said the Labour Minister. All the trade unions and business leaders are also in agreement, he added and this has set the stage for trade unions to further bargain for betterment of their employees.
The implementation of the new wage standard will also be monitored by officials of the Guyana Revenue Authority (GRA) and the National Insurance Scheme (NIS) as they interact with workers and employers regularly, to ensure compliance.
“If workers are happy and prosperous, you will be prosperous, if workers are happy and continue to be motivated, the country will benefit, so we are working for a common goal and a common objective” he stated.
In January, Government established a ministerial team to work to fine-tune the necessary procedures that would facilitate the establishment of a national minimum wage. This effort was led by Minister Gopaul. This initiative is strongly supported at the level of the tripartite committee which consists of Government officials, representatives from the various labour organisations and the private sector
Chief Labour Officer says it’s now forty hours or five days … anything after that is overtime |
Written by Nadine Sanchara
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Wednesday, 03 July 2013 21:26
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THE recent implementation of the five-day/40-hour per week regulation applies to all workers in every industry or sector of Guyana. This is according to Chief Labour Officer, Mr. Charles Ogle, who, in an interview yesterday, told the media that the regulation is a universal law of Guyana and applies to every worker in each of the 10 administrative regions of the country. He stated that every worker should be required to work 40 hours over a five-day period each week, and should be paid overtime rates for any additional hours. Ogle explained that this is not a new initiative, noting that since 1986 Guyana had moved to have a five-day work week. However, at that time, the regulation applied only to public/government entities. He further stated that the labour movement believes that rest is important to everyone, hence the universal implementation of the regulation, which became effective on July 1. “We see the importance of rest, rest is important for the worker...they need to have time to socialise with their families,” he remarked. Ogle reiterated that the law now applies to everyone, including media workers and the private sector, and failure to comply with it can result in penalties being applied. Meanwhile, Vice-Chairman of the Private Sector Commission (PSC), Mr. Clinton Urling, had said that the commission welcomes the minimum wage increase to $35,000 monthly, but is calling for a review and re-examination of the five-day work week in order to ascertain the potential economic impact. Urling indicated that workers of some companies work for five or six hours a day and this is stretched over the six days. He further called on the government to stretch the 40-hour work week over six days. According to Urling, the formula was not feasible, particularly for entities in the hospitality and mining sectors, in which he said two days would basically be non- productive days. Ogle noted that the PSC had no objections to the increased minimum wage, and pointed out that while it was increased only slightly, it is a vast improvement from what it was previously. He pointed out that prior to this increase; the minimum wage had not increased for four years. He stated that even for workers in the private sector, it is government’s responsibility to ensure that all workers are earning a respectable wage. As it relates to the five-day work week stipulation, Ogle explained that it does not necessarily mean Monday to Friday. For instance, he stated, workers could be asked to work from Tuesday to Saturday or Wednesday to Friday. “It could be any five days that you choose. We’re saying 40 hours or five days, anything after that is overtime,” he stated.
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Would love to see some of those unscroupolus businessmen and store owners on Water Street, Regent Street and Robb Street goes to jail for cheating their employees. But then again with Political affiliations.......no one goes to jail.
good luck with that one.
Would love to see some of those unscroupolus businessmen and store owners on Water Street, Regent Street and Robb Street goes to jail for cheating their employees. But then again with Political affiliations.......no one goes to jail.
This has been an old issue. I remember store owners being accused of forcing their employees (usually young country girls) to sign for a pay larger than what the actually received. There was little insight over how many hours they worked.
There are many labor laws already on the books, it's a question of enforcement and you usually need a "whistle blower" to spill the beans.