Increase for Private Sector community was necessary

Dear Editor,
This increase for the Private Sector community of employees, spanning tens of thousands, is a thing which was expected and is necessary. Therefore, I take the opportunity to compliment the Government of Guyana for ensuring that, in the very near future, the Private Sector workers would be granted a reasonable increase. This would assist them in their ability to survive and exist in a dynamic, diverse, and troublesome economy.
I know that the future looks well for Guyana, with our prosperity and excellent management of our prosperity by the current Government of the country. Notwithstanding, I am of the opinion that the Private Sector employees and the Government employees in reality require an increase to bring their earnings to about a hundred thousand dollars ($100,000) per month.
However, as a realist, I also know that the country and our economy cannot deal with this at the moment. As for the Government of the day – which is, the people’s government: of the people, for the people, by the people – they are moving in stealth, goodwill, great intentions, and love for the citizens of this country. I wish to applaud our Government for being so caring and concerned.
When the 7% across-the-board salary increase was approved with the retro from January for the Public Service workers, there was a hue-and-cry, condemnation and mockery in many quarters. Positive people came out to teach and explain certain things, as did this writer. They seem to forget that there have been grants for COVID-19; school grants of $19,000 for each student, which the Opposition of Guyana went to great pains to object to its payment. They said it was a waste of money, but our Government of Guyana stood firmly and ensured that every child across Guyana receive the grant; from the Coastal Belt, the interior, the riverine areas, the city and towns. All our students were able to enjoy this, and support their families; they cushioned the cost of living and difficulties that were brought on by COVID-19. Not forgetting the $25,000 cash grant given to every household in this country.
What an amazing Government we have! What a truly caring Government! I think we can give the Government of Guyana another round of applause.
Then when it came to the Government pensioners receiving $25,000 as a life support, the Opposition went to great pains again to object to its payment. They were annoyed; they were boisterous in their objections! But the goodly Government of Guyana went ahead and paid it out to the pensioners.
I think, ladies and gentlemen, the Government of Guyana needs yet another round of applause. All of this was intended to help provide the cash that could be used to ease the cost-of-living burdens and also to create commerce in the economy in order to keep money in circulation. I am no financial or economic specialist, but what I am is a realist!
Now, with the minimum wage the Government is granting, which I applaud on behalf of my company, RK’s Guyana Security Services, a mass labour employer in this country. I am very concerned about a possible catastrophe that awaits the employer!
Several years back, when Dr. Nanda Gopaul was Minister of Labour, a catastrophe was created in this country because an increase was made in the middle of the year. The increase was by $40, which seriously affected labour contractors to the Government and other contractors simply because it was done in the middle of the year, when contracts were already awarded for the entire year. It is sad that the Minister at that time and the Government did not see the wisdom of it. Now I can speak quite excellently for the security sector, or the security services, as I am also referred to as the “Grandfather” of security in Guyana. If the contracts are awarded, and in the middle of a year you increase the rates on the contractors, what will happen? This is what happened at that time: the only honorable security company that worked for the Government contracts was RK’s Guyana Security Services. We worked with the new increase for 3 months, and upon realising that we could not go any further, having tried to negotiate with the Government, we went public, with no response. RK’s Guyana Security Services had to withdraw several major contracts of the Government by providing the proper notice as per contract.
This company, known as RK’s, cannot commit a crime, or underpay their workers, or steal NIS, or steal VAT, or steal workers’ PAYE TAXES, or steal anything at all! This company has been in existence for over 42 years, and has never committed an infraction with the National Insurance, with Labour or Income Tax, and it’s a proud thing for us to say; but, of course, we lose money so to say. More companies at that time were stealing the VAT, stealing the NIS, or most of it, and they were bribing to get compliance certificates from GRA and from NIS. They were bribing, that is a known fact!
One contractor who claimed he was close to a former President and leader in a Political Party governing at that time was actually underpaying thousands of workers with the old minimum wage rate. He was also stealing all the workers’ NIS to make up for his shortfall, all the VAT and NIS, and pulling the wool over the eyes of the authorities of these entities.
RK’s cannot do that, so we terminated the contracts, as I would have mentioned above. It was not done out of passion or lack of goodwill; it was just going to lead us to bankruptcy, since we had already lost millions of dollars for the three months we had tried to carry it over. We were operating at a loss; any company that tendered at that time would be operating at a loss. Any company that operated at this time with the low rates that they have been charging and tendering below rates, who are already involved in stealing VAT and PAYE and not paying their own Corporation TAXES, will not be able to carry this increase on their own.
Except for the few which it is claimed by certain prominent individuals and people within the company who know them, some of them are involved with money laundering, actual narcotics dealing, smuggling of gold and diamonds and use of weapons provided for their security services for most of their illegalities, and that helps to supplement and whitewash their income, so to say.
So, what to do? I had expressed to His Excellency the President and to the Minister of Labour, about a year ago, that I knew an increase was looming for the Private Sector, an increase which was needed, an increase that might not be enough, and an increase which would drive up inflation and eat away the few dollars that the workers would get.
The Government of Guyana needs to ensure those who have already signed contracts and will sign into the future, for tenders that already went out and are pending, and might be awarded anytime in the month of December and in January, and before the budget and even those after the budget; the Government needs to add a percentage of the increase automatically per hour on security services that have tendered and have been awarded the contract. I am repeating for the sake of emphasis, Mr. President and Government of Guyana, that whatever rate the Government increases to for those contracts which have already been awarded and which are currently being processed to be awarded, that these contracts should automatically be given the difference that they tendered for. For example, if it was tendered for $400 an hour and the increase is $30 an hour then $30 should be added automatically per hour for the tender.
Some companies will continue to not object or protest, but will continue and be even more tempted to steal more NIS, more VAT, and the theft of VAT is a big thing among some Security Service providers. Pay less Corporation Taxes, steal more PAYE, and still work more PAYE.
I am urging the Government for those companies who are not objecting and are tendering very low, like $300/$290/$280/$270 an hour. They are not as experienced as some of us may be. You have to wonder where they are getting the money from to operate, or the Government will be losing vastly in the NIS and the VAT and the others that I would have indicated above.
This is an opinion to the wise President and the Government of Guyana to take this all into consideration. With this in mind, I thank you for considering the working class, who comprise the backbone of the economy of our country, and most of who are professional and patriots of our nation.

Sincerely,
Hajji Dr Roshan
Khan Snr