Jul 17, 2013 News
– Pulls only one, undisclosed number of staffers sent home
With Government unwilling to increase rates on existing security contracts, R.K. Guyana Security Services was forced to terminate one of its contracts. However, the company did not proceed with its threat of terminating 15 contracts by July 15.
According to Roshan Khan, the company’s Chief Executive Officer, due to professional ethics and discussions with the respective entities, a decision was made to not pull security services from the Ministries, Ministers’ residences, and Government agencies.
Khan said the company was forced to withdraw services from one entity. However, he was tightlipped about the details.
He is hoping that Government would revisit its decision and increase the hourly rates to match the new minimum wage that was implemented on July 1.
According to Khan, the new minimum wage should be higher and Government’s commitment to this initiative should be reflected in the value of its contracts. As such, adjustments should have been made to existing contracts.
Last week, Cabinet Secretary Dr. Roger Luncheon at a post-Cabinet press briefing made it clear that Government would not be making monetary adjustments to contracts awarded to R.K. Guyana Security Services to match the new minimum wage. And, Government would willingly accept the termination notices and retender the contracts.
“Where employers holding or currently executing contracts feel so moved on whatever grounds… but those specifically relating to consequences of the implementation of the minimum wage order they can withdraw and squash the contract and then allow us to go back to tender and allow them to retender if they so intend,” Dr. Luncheon asserted.
Khan is aware that the contracts would be retendered, but would have preferred if Government would have “come out of this difficult posture”. He is disappointed with Government’s decision and claims to be operating at a loss to continue servicing the entities.
According to Khan, the company was forced to make the hard and unfortunate decision of temporarily letting go of some staffers.
However, efforts are being made to solicit private contracts to absorb them back in the company. If Khan had made good on his threat, over 80 staff would have been dismissed.
This situation being played out by R.K. Guyana Security Services and Government is contradicting earlier statements made by Samuel Goolsarran, Consultant Adviser, Consultative Association of Guyanese Industry Ltd (CAGI).
According to Goolsarran, discussions on the new minimum wage started over 18 months ago and the tripartite discussions involved Government, trade unions, and the Private Sector Commission, with CAGI as the representative.
R.K. Guyana Security Services is not a member of the Private Sector Commission, but was called in for discussions with CAGI in June weeks after Dr. Luncheon announced the new minimum wage. Khan believes the discourse time with CAGI on the matter was insufficient and its implementation by Cabinet was too quick.
However, according to Goolsarran, if any enterprise feels that their operation is at a disadvantage, a case should be made up.
He explained that the company could present profit and loss figures to Government for incentives.
He said that no one will lose their jobs, since the private sector would pass the cost on to customers which would be the easy thing to do. However, he said that companies could recover their additional costs from Government.
“If your cost goes up by ‘X’ amount, your operating cost will go up. It will be offset by the taxation you pay to government by whatever percent,” he said.
Jun 24, 2021Kaieteur News – The domestic-based contingent of Guyana’s Senior Men’s National Team along with some of their overseas based counterparts arrived in the USA last evening ahead of final...
Jun 24, 2021
Jun 24, 2021
Jun 23, 2021
Jun 23, 2021
Jun 23, 2021
Kaieteur News – Anyone who has read my analyses the past 32 years would know that I have literally begged people to... more
Kaieteur News – Cubans should not be penalised because of the alleged discovery of a human trafficking ring involving... more
By Sir Ronald Sanders More commonality was shown by CARICOM countries in a vote on Tuesday June 15 at the Organisation of... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]