RUSAL says the challenge is more than this pay increase

Aug 23, 2019 News

Attracting new foreign investors will always be considered a challenging task but it is not as challenging as attracting them after others have been ousted from the country.
Guyana is a country blessed with abundant natural resources that attract overseas investors, i.e. large international corporations with social programmes that include the development of infrastructure and local community engagement.
The arrival of such companies tends to bring numerous benefits to the region, from housing to access to water. For a lot of people, finding a job with an international company is a privilege with additional perks and paid allowances.
Despite this, when certain individuals and groups start an antagonistic media campaign aimed directly at foreign investment corporations, they not only put the future of current employees at risk, but also jeopardize the future operations of such companies, which we are witnessing in Guyana.
Take one of such foreign investor, Russian aluminium giant, RUSAL, a company that has been systematically investing in Guyana for almost 15 years in its bauxite mines which are located in the remote and poorly accessible areas of Aroaima and Kwakwani.
Its mining company, the Bauxite Company of Guyana (BCGI), employs over 500 people, provides housing and covers transportation costs for those who travel to and from the mining site. Recently the company received attention from several media publications regarding its social policy and wage increases.
One of the key characteristics of a good foreign investor is that in uncertain times, it does not let the employees feel the strain. During those years of BCGI’s operations in Guyana, the market has seen its highs and lows – political challenges, economic ups and downs and market turbulence to name but a few.
Alongside this, the aluminium price has fallen by 25%. The alumina and bauxite prices have followed that slump. The global market is overwhelmed with bauxite offers from other countries.
Moreover, the quality of Guyana’s bauxite varies, creating extra hurdles for any investor engaged in the business. Despite this, RUSAL stayed in the country and has never ceased to fulfil its obligations as a reliable employer amidst all kind of challenges.
Recent publications in some local media outlets have however questioned or completely disregarded the benefits that BCGI’s operations bring to the community and the wider region. Instead, they prefer to dwell upon the issue of the pay rise whilst misinterpreting the real facts.
The company raised the wages of its employees in excess of the inflation rate: during the period of 2009-2018 alone, BCGI increased wages by 47%, when the official inflation rate, according to the Guyana Government’s Bureau of Statistics, was 17%. By comparison, most other companies have implemented salary increases only relative to the inflation rate.
Moreover, BCGI proposed a 4.5% increase starting from January 1, 2019 (1% of the increase had already been added at the beginning of the year). The wage package in 2019 is likely to be even higher as the 4.5% figure excludes a broad list of additional benefits including the cost of meals, premiums for working at heights ($120 for working at heights in excess of 12 feet), night shift premiums ($140 per hour), and a discomfiture and hazard allowance ($200 per hour).
In 2020, the Company will provide another 3.5% increase thus leading to a total salary increase of 8% over two years, and all of this excluding the additional benefits previously cited.
Finally, BCGI has always been open to negotiation, and has been actively involved in the drafting of a Collective Labor Agreement that will help improve workplace conditions and address the requests of employees.
The Company has continuously proved that it is its people who comprise its greatest assets, so cooperation and the amelioration of working conditions naturally come as priorities for the business.
Distortion of the real facts and unwillingness of certain media to go in depth on the story is threatening the well-being of hundreds of BCGI’s employees and the stability of the region.
One should also keep in mind, that with high production cost, bauxite from Guyana can hardly be sold to a third-party company; BCGI operates thanks to RUSAL’s in-house supply scheme.

Latest News

RUSAL says the challenge is more than this pay increase

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

UDFA Year-End Futsal Tournament kicks off December 15

Jaker, Taijul and Rana script Bangladesh’s...

Trophy Stall and Superbet on board with Kashif...

Jai Hind Jaguars trounce North Soesdyke Masters...

BMC invites clubs/teams to register for the 2025...

ASK-G holds successful Karate Grading

Features/Columnists

Deeply concerned about political dysfunction in society

Haiti: Tragically Descending into Deeper Crisis

Wanted Pathfinders

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

RUSAL says the challenge is more than this pay increase

Share this:

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]