Latest update December 3rd, 2024 1:00 AM
Jun 20, 2022 Letters
Dear Editor,
This minimum wage increase as certified and announced by His Excellency Dr. Irfaan Ali of 36% in my opinion has many questions to be answered and the realities to be faced.
I the undersigned, am an ‘old timer’ in the private sector and the security sector, operating for over 42 years. I have seen governments come and go and acquired enormous knowledge of people who have power; betrayal of trust, self-centeredness, mass corruption in various sectors and the final reality is that the small man is never the real man. The small is the real man, were the words of Former President Forbes Burnham but from his era to date the small man is never the real man. Except for this government which has been trying so much to bring lands, housing and various grants to ease the economic pressure on the small man. I pray one day that the small man truly becomes a real man!
While the 36% increase feels much, the reality is that it really is not and it is less than a drop in a bucket of no water. I came from poverty, understood poverty from my childhood and was virtually on the streets until by accident by the grace of God that I ended up in business with $7.50 in my pocket and an education along with my old motorcycle. So I empathise with the small man! I feel their tears and pains as they suffer! I pray one day that we will be able to provide all employees that earn the minimum wage, free water and electricity or a subsidy of at least 50%.
Please note the following:
1. This increase is not in any way adequate to ease the pain and pressure of the minimum wage earner. I recommend immediately $75,000 and in January 2023, $100,000 then in January 2024, $125,000 until such time that the cost of living is brought down and the economy flourishes.
2. Some years back when the PPP/C was in government, at about this same time of the year there was an increase in the minimum wage. This sudden increase created a ‘shock and awe’ in the industry. Being a company of law that does not steal VAT, NIS, PAYE TAXES or corporate taxes. We were forced to give up a number of contracts after holding onto them for three months at great losses to us, with the hope that the then government during the era of Dr. Bharrat Jagdeo would have reviewed the matter and corrected the big error. Others eventually gave up the contracts but one held on illegally and made it clear that he would hold and pay the same old wages which he did for years, boasting that due to his relationship with certain political powers nothing could come out of it.
3. I did write a letter to the editor back in December of 2021 which was published in the Guyana Times December 19th, 2021 edition, appealing to the President about the Minimum Wage increase in the Private Sector. I also had a personal conversation with the President when we met at an event. I advised that they should not increase in the middle of the year when the budget would have already been passed and contracts already signed. The President as usual listened very intently and said that he heard me and that it was logical, that they should not institute an increase in the middle of a year when contracts are pending or already tendered for or already signed.
4. However, I did mention to the President and in that December 19th, 2021 article that if the government does increase wages in the middle of the year, they should immediately adjust the rates for the companies who are contracted to provide labour for example; Security Companies, Cleaning Agencies for Airports, Governmental Institutions etc.
So my appeal is to the President, Cabinet and the government to understand that they cannot implement this immediately without addressing the problem with the contracted company who usually earn 3%-7% as the traffic margin except for the holy and the blessed who are awarded contracts at the highest sums possible in tenders.
This increase could wipe out long term honorable Security Companies who charge the lowest possible rates but enough to manage the operations without stealing the VAT and fully contributing to the NIS and GRA.
Therefore, I say Mr. President and Cabinet thank you on behalf of the working class for small mercies, in some ways it will assist the people.
Sincerely,
Hajji Dr. Roshan Khan Snr.
Dec 03, 2024
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