Tax-free overtime for bauxite workers
BAUXITE workers can soon expect the implementation of tax-free overtime in keeping with a promise made by the A Partnership for National Unity + Alliance for Change (APNU+AFC) Government upon assumption to office. In a meeting with the management of the Bauxite Company Guyana Inc. (RUSAL), Minister of Social Protection, Volda Lawrence said it was a done deal, explaining that the Finance Minister Winston Jordan will soon make a pronouncement on the matter. “This is a done deal, the workers will be given their tax exemptions on overtime,” Minister Lawrence said on Thursday.
Social Protection Minister Volda Lawrence engages the Chief Labour Officer Charles Ogle during the meeting in the presence of Minister Keith Scott
At the time, Minister Lawrence was speaking at the Department of Labour in the presence of the Minister within the Ministry of Social Protection with responsibility for Labour, Keith Scott; the Chief Labour Officer, Charles Ogle; Labour Consultant, Francis Carryl; and senior functionaries of RUSAL including the Programme Manager, Gennadly Derevyanko.
Tax-free concession on overtime work was implemented in 1988. This concession was enjoyed by workers up until 2007 when it was arbitrarily taken away by the People’s Progressive Party (PPP) Administration. The move by the PPP Administration had adversely affected the earnings of bauxite workers from Linden and Kwakwani, and was seen as a punitive exercise for not supporting the PPP.
In addition to making the announcement, Thursday’s meeting between the Social Protection Ministry and the Management of RUSAL was primarily held to discuss and possibly iron out a number of issues plaguing workers operating in the Upper Demerara-Upper Berbice District. However, the contentious issue surrounding the 57 workers who were dismissed from BCGI/RUSAL back in November 2009 did not surface, although there were high expectations on part of the unions given a commitment given by the current administration to resolve the matter.
Nevertheless, painstakingly, the officials discussed in detail the 31 complaints made to the Ministerial Team by the bauxite workers during a recent visit to the company.
In response, the management of the bauxite company agreed to effect several corrective measures, however, key issues regarding the contracting of workers, hours of work, overtime, the payment of National Insurance Scheme (N.I.S) and Pay As You Earn (PAYE) contribution, and the lunch period are up for further discussion given major disagreements.
Requesting to see the company’s master payroll, the Ministry’s Labour Consultant expressed major concern over the hiring of contractual workers, contending that the move is an attempt to circumvent the payment of N.I.S and P.A.Y.E contributions.
In response, the company’s representatives said once employed under contract for service, it is the responsibility of the employee to pay his own N.I.S and P.A.Y.E contributions.
But this response was met with major objection by the Chief Labour Officer. “If you are a responsible company or a foreign company, you should guide and advise them that all workers must pay their N.I.S. and P.A.Y.E contributions, nothing else is acceptable,” Ogle said.
He too maintained that the move by the company to hire workers on a contractual basis is to circumvent the law with respect to the payment of N.I.S and P.A.Y.E, and secondly to dismiss workers. He said in the end workers are losing.
“This contract thing can’t work, we only call them contract workers to prevent them from getting their benefits. They are not entitled to bonus, they are not entitled to pay increase, they are not entitled to anything,” Ogle lamented.
Additionally, the workers had complained about the 30 minutes launch break and the two 15 minutes break they are given during a 12 hours’ work day, saying that it was insufficient. But when the issued surfaced during the meeting, RUSAL’s consultant Mohammed Akeel asked “wuh wrang with duh?” After several minutes of deliberation, the Ministry agreed that it would write the company on this particular matter because they were unable to arrive at a consensus.
Workers had also complained about being forced to drive defective vehicles, and they are made to pay for damages to vehicles and equipment. When the matter arose, the company’s consultant cited case in which workers were asked to operate a machine two hours at a time, when the AC became dysfunctional, but they refused. As such, he said in such a case, the workers would be paid for half a day for a given period, and if the matter is not solved, they would be temporarily laid off. “The law allows us to do that, the law allows us to do that,” he lamented.
But Minister Scott, who was clearly in a ‘no-sense’ mood, said no worker should be laid off because of a defective vehicle. According to him, alternative work should be provided until the machines are repaired.
While there were some disagreements, RUSAL agree to establish an Occupational Health and Safety Committee, and host a meeting with workers and other representatives to determine which hospital workers should be taken to in the event of an accident. With the current system in place, workers are taken to Balwant Singh Hospital but they are usually left with huge medical bills.