DDL signs new 5-year collective labour agreement with unions

Nov 24, 2024 News

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Kaieteur News- Demerara Distillers Limited (DDL), and the three unions operating in the group: the Guyana Agricultural and General Workers Union (GAWU), the Guyana Labour Union (GLU), and the Clerical and Commercial Workers Union (CCWU), signed another historic five-year Collective Labour Agreement (for the years 2025-2029) on November 20, 2024.

In a statement issued on Saturday, the company said that the signing was historic since the negotiations were initiated by the company after reviewing the national situation, even though the company and the unions already had a five-year agreement in place, which would have come to an end on December 31, 2025.

“The Agreement signed on Wednesday includes a clause that ends the current agreement with effect from 31st December 2024.  The new terms and conditions agreed will come into effect the 1st January 2025,” the statement said.

At the signing ceremony on Wednesday, General Secretary of the GLU, Carvil Duncan commended the process.  He reflected that whilst negotiating, he thought that some of the requests from the unions were tough, but he was very pleased that ‘all parties have done well’.  He said that the Agreement should be a landmark that all other industries will follow.

General Secretary of the CCWU, Sherwood Clarke noted that his union collaborates with the other unions (GAWU and GLU), and that the relationship works very well, with everyone receiving the necessary support. Mr. Clarke said that he is confident that the management and unions can meet and address any concerns that arise from time to time, as they have done in the past.

President of GAWU, Seepaul Narine, who was the lead in the negotiations, indicated that he was very happy that we have reached what he calls a ‘very historic agreement’.  Narine reminded that DDL has been signing with three unions together for years, which has never before been seen in the country.  He said, ‘when we look at this agreement, it was negotiated to cancel an existing agreement (which should have ended in 2025)’.  He pointed out that the new minimum will be $125,000 for 2025, which is an increase of 37% over the current minimum.

Mr. Narine pointed out that it is an excellent achievement, not only from the side of the unions, but also points to the generosity of the management.  He indicated that employees in the public sector are likely to get an increase in their minimum salary, but that DDL would be significantly higher, with a minimum wage of $125,000.  He noted that the company and the unions were always able to work together, and any issues can be sorted out.

The GAWU president reiterated that the agreement is a good agreement, which caters for increases every year over a 5-year period of 6, 7 and 8% for C, B and A performance, and noted also that other allowances have also increased. He reminded that the Agreement also has a clause that takes care of what happens if the national inflation rate exceeds 5% and recalled recently when the national inflation rate had risen above 5%, that the company had taken steps to ensure that employees’ salaries were adjusted accordingly.

Narine concluded that “DDL is indeed a leader which we hope that the private sector will follow”.  He said that he was very pleased to be associated with DDL and to be signing this Agreement.

Chairman of the DDL group, Mr. Komal Samaroo, in his remarks at the signing, spoke a little about the history of the union/company relations, noting that before 2002, the company was negotiating individually with three unions.  The company at that time thought to try to build trust with and amongst the unions working in the company, and then signed the first multi-year, multi union agreement in 2002: twenty-two years ago.

The Chairman also gave a background into the longer-term agreements, and how the company and the unions got to the point of extending our agreements so that a lot of time is not spent around the negotiating table.  Necessary safety clauses are included in the agreements.  The company signed the first five-year agreement in 2015 (having done three-year agreements before then).

Mr. Samaroo indicated that because of the changes taking place in the economy, the last agreement would no longer be relevant, hence steps were taken to negotiate a new 5-year Agreement which takes account of the market realities, hence the considerable adjustment in remuneration.

The Chairman, addressing the Union representatives, encouraged employees to develop themselves, so that someone who joins DDL at one level, can grow into higher jobs as they learn new skills.  He reminded that DDL remains committed to working with institutions of higher learning and encouraged the unions and the management to continue to work together and foster the growth of our employees.

In closing, Mr. Chairman congratulated all sides on reaching agreement, noting that DDL has done what no other employer has done, in signing innovative and out of the box agreements.

(DDL signs new 5-year collective labour agreement with unions)

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• Carvil Duncan, Demerara Distillers Limited, Guyana Agricultural and General Workers Union, Sherwood Clarke

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