The President should now extend his generosity to all marginalized workers

Dec 29, 2010 Letters

Dear Sir,
A basic principle in unionized entities where negotiations for wages/salaries are pursued is the ability to pay. Where such ability does not exist, the employer invariably implements wage freeze, reduce the work week, ban overtime or alternatively downsize thus making employees redundant. In some cases, in order to sustain the viability of the entity, employees voluntarily accept pay cuts. This is the sad reality of private enterprise where survival depends on profitability.
In the negotiations between GAWU and Guysuco, the company continuously argued that unless production targets are met there will be no increase in wages, a position which precipitated strike action making a bad situation worse. So, the question of ability to pay was further eroded and the acrimony between the parties continued to fester to the point where the Company threatened to de-recognize the union.
From all indications the Skeldon factory is stymied by mechanical problems that affect its efficiency, but that notwithstanding inclement weather, high levels of absenteeism, labour turnover and wildcat strikes also impact on productivity and revenue, thus affecting the ability to pay.
Wages and salary increases also have a complementary effect on other employment costs such as overtime, employers’ contribution to NIS and pension schemes, leave allowances, incentives etc., which are substantial cost factors.
As a labour intensive industry, the percentage ratio of total employment cost against total expenditure can also indicate which areas of expenditure are given priority.
Sugar workers continue to work under extremely difficult conditions and deserve increase in wages, but like all industries, such increase must be granted within the context of affordability.
No doubt, this principle was recognized by the President who gratuitously offered GAWU a 5% bonus, not attached to wages, compliments of the treasury.
Unlike GAWU, however, the Public Service Union was not given an opportunity to argue their case of affordability through the imposition of a 5% salary increase that violates laid down procedures of negotiation within Collective Labour Agreements that in law are legally enforceable. As a gesture of goodwill, the President should now extend his generosity to all marginalized workers mostly single parents who work as security guards, domestics, waitresses, store clerks, pump attendants, and others who barely survive on starvation minimum wages.
D. Sookdeo

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The President should now extend his generosity to all marginalized workers

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