The Federation of Independent Trade Unions of Guyana has called for a prompt revision of the national minimum wage, and has signalled its interest in consultations that will be taken by Government before arriving at a concrete decision.
A few days ago, President Irfaan Ali commented on an improvement to the national minimum wage (NMW), whereby Labour Minister Joseph Hamilton has been mandated to conduct wide consultations before presenting a paper to Cabinet.
Ali took into account the Private Sector Commission’s views that were made public last December, whereby they agreed on an increase to the national minimum wage from $44,200 to $60,000.
Arising from that decision, the private sector’s representatives on the National Tripartite Committee (NTC) would have expressed their support for the improvement of the NMW in January, this year. The NTC comprises representatives of the labour movement, the business sector, and the Government. This, FITUG noted, is an adequate forum for the exchange of views on this matter.
In a statement on Monday, the Union noted, “We are convinced that the present NMW can hardly be seen as adequate. Even the Government through its recently launched part-time jobs programme has taken cognisance of this reality…The FITUG nonetheless seeks to play an active role in the consultations to be convened by Minister Hamilton. Given our massive economic expansion, undoubtedly there is a need to ensure the current rising tide lifts all boats and that Guyanese workers can seek to have a decent living. Indeed, President Ali himself has committed to such and, we believe, at this time the NMW should be revised speedily.”
Shortly after taking office in August 2020, Minister Hamilton had announced the increase of the private sector minimum wage to $60,000 from $47,000. However, while an order to this effect was made, there was no timeline set for its enforcement. This was postponed due to the COVID-19 pandemic and the impact it has had on businesses.
When the country began opening up last year, these talks resumed. The Labour Minister had been re-engaging the private sector in enforcing these increases.
The public sector minimum wage currently stands at $70,000, and even with this increase for private sector workers, it would still be less. The private sector’s minimum wage was last increased in 2017, from an hourly rate of $202 to $255, taking the monthly wage from $35,000 to $44,200.
Minister Hamilton had previously explained that this increase to $60,000 would only impact about 10 per cent of private-sector workers, who are currently being paid below that wage level.
Last year, when the Government announced a seven per cent retroactive salary increase for all public sector workers, it sparked conversations about pay in the private sector. In fact, the Federation of Independent Trade Unions of Guyana (FITUG) had called on private businesses to follow suit in order to attract and retain their workforce.
