Companies flouting new minimum wage rule

Labour Minister Dr Nanda Gopaul said his ministry was preparing charges against a large security firm, having found that it was in breach of the new minimum wage order.

Dr Gopaul told this newspaper during an exclusive interview on Tuesday that his ministry believed that wages owed to workers at that particular firm could run into millions of dollars. He said the firm had not been paying staff according to the previous minimum wage order, much less the new one.

While the minister did not disclose the name of the security firm, he noted that strict measures will be taken against the owners.  He also disclosed that the firm has, for a number of years, been awarded several government contracts.

“We believe that the company has violated not only the minimum wage now, but the previous order and we cannot tolerate that, if it means taking the toughest action against the company we will do so,” the minister asserted.

Dr Gopaul also stated that it was found that some private sector companies had not implemented the new minimum wage order.

However, after inspectors working with the ministry would have discovered that, the businesses were instructed to comply with the order or face prosecution.

Many of these said companies are now complying and have started paying salaries retroactive to July 1, the date the national minimum wage order came into effect.

Inspection

He said, “I want to say clearly that we have given enough time, and we will charge and prosecute persons once they fail to implement. We will continue doing inspection works in and around Georgetown in particular and move into the other communities.”

Regions Six and Nine will also be targeted, particularly as the ministry has been getting reports that employers there are not paying overtime, which is mandatory in the new order.

The ministry will ensure strict compliance in this regard and plans to carry out several other exercises, to ensure that employees are given what they deserve by their employers, Dr Gopaul said.

In January, government established a ministerial team to fine-tune the necessary procedures that would facilitate the establishment of a national minimum wage. This effort was led by the labour minister.

This initiative was strongly supported at the level of the tripartite committee, which consisted of government officials, representatives from the various labour organisations and the private sector. The new minimum wages agreed to are: Gy$35,000 monthly, Gy$8000 weekly and Gy$200 hourly.

This new national minimum wage affects all business sectors in Guyana, replacing the existing one that covered only specific sectors.

Government had said that the new national minimum wage is an improvement that will bind employers across the board to subscribe to a standard amount to be earned by any employee.

It could also put an end to underpayment and reduce workers’ exploitation by employers.