Private Sector cannot match $50k bonus for workers

Many Private Sector employees will be disheartened to learn that they will definitely not benefit from a bonus this year equivalent to what public servants have been awarded by the Government, given the state of the economy.

BCIC President Rajnauth Ramroop19

This is according to Berbice Chamber of Industry and Commerce (BCIC) President Rajnauth Ramroop who told Guyana Times on Friday that 2015 has been a “very bad year for business.”

He emphasised that while it is a good move that public servants will receive $50,000 this month, a number of Private Sector employees in Region Six (East Berbice-Corentyne) will not be enjoying such from their employers.

Due to the fact that 2015 did not see the business sector in his region yielding large profits, and in some cases none at all, to give an employee $50,000 as a Christmas bonus this year would pose great difficulty.

“A lot of businesses actually were just breaking even or some were suffering losses so to match the $50,000 bonus that the Government gave, that would be something hard for them to do personally to every worker. I want to feel that if they are giving bonuses, workers may be graded, in some cases depending on the positions that they hold, may be getting or could be getting maybe $50,000. But the small workers cannot get $50,000,” Ramroop explained.

According to the BCIC President, the economy in Region Six depends heavily on the agriculture sector and this too has been facing tumultuous times throughout this year.

He further explained that the Guyana Sugar Corporation (GuySuCo) was unable to pay sugar workers increases in their salaries and even the Annual Production Incentives (API) for 2015, therefore cutting the spending power of many in Berbice.

“Businesses are still not seeing the returns that they would have expected and we totally depended on the sugar industry and also the rice sector. Due to the fall in prices for rice, that would reflect on business. GuySuCo did not pay out any money, sugar workers did not get anything extra to spend, so for our region here, I see it very difficult for the Private Sector to match the $50,000 that the Government has extended,” he said.

Ramroop further stated that when one takes into consideration the $50,000 bonus that the Government has awarded to workers earning less than $500,000 on a monthly basis, it is evident that many persons qualify for their bonus.

“I know a lot of people have qualified for the Government’s $50,000 bonus but it is going to pose a problem for the Private Sector to pay such an amount, given the current and past situation in the economy for this year. This is so especially in our region because we solely depend on the agriculture sector and that has been a problem…” he added.

Meanwhile, Chairman of the Private Sector Commission, Retired Major General Norman McLean told this publication on Friday evening that he was unaware that public servants would get a bonus at the end of a year.

“I didn’t know public servants used to get a bonus at the end of the year. I never heard that. I know the Guyana Defence Force (GDF) used to get a one-month salary at one time but I don’t know that public servants get a bonus. They get the increase of five per cent or whatever but I don’t think there is any correlation between the public service and the Private Sector because the Private Sector normally earns a bonus based on performance…” he stated.

With regards to the Private Sector awarding its employees throughout the country with a bonus that matches what the Government has given to its workers for 2015, the PSC Chairman stated that there are terms under which a bonus is given.

“The Private Sector is a different kettle of fish, always targeted based on performance, based on a merit system. So if you met your target then you can expect that there would be a bonus. I heard from Gafoors, the Chairman of Gafoors SattaurGafoor reported at his Christmas dinner that people were being given their bonuses for the year… we are very pleased to hear that too,” McLean added. (kristenm@guyanatimesgyu.com)