Latest update April 19th, 2024 12:59 AM
Sep 13, 2022 News
…Ram says government must observe collective bargaining and pay Guyanese better
By Zena Henry
The Bank of Guyana (BoG) midyear report has recorded a significant dip in the number of persons in the employ of the State, particularly within central government.
The Central Bank highlighted that public sector employment fell by 10.9 percent at the end of June 2022; a sharp decline from the marginal drop of 0.4 percent which was recorded for the same period last year. This position reflected lower employment within Central Government by 17.7 percent, while employment within the rest of the public sector increased by 4.3 percent, the Bank highlighted.
It said that employment at the Guyana Sugar Corporation (GUYSUCO) increased by 7.7 percent while employment at the other state corporations fell by 1.4 percent. Labour unrest, which was confined to GUYSUCO, registered an increase in the number of work stoppages to 23 from 20 at the end of June 2021. Man-days lost however, were lower at 2,142 from 5,609 compared to the same period, ending-June 2021.
Wages loss declined by 57.7 percent, that is G$6.5 million from G$15.3 million for the same period last year. Private sector employment saw a bounce as the Bank reported a “rebound” in the accessing of jobs. It related that the employment rebound came primarily in the services sector, due to the full reopening of business establishments, along with the launching of new business entities. The Bank pointed out however, that public sector minimum wage remained at G$70,000 per month while the income tax threshold was unchanged at G$60,000 per month during the first half of 2022.
As it relates to inflation, the Bank said that measured by the change in the Urban Consumer Price Index (CPI), it was 4.9 percent at the end June 2022, given the sharp increases in food prices, particularly, meat, fish, eggs and fruits and fruit products. World food prices also remained at elevated levels according to the Food and Agriculture Organization (FAO) Food Price Index. Further, the Bank continued, local food prices have also seen an increase in the categories of meat, cereals and vegetables. Higher crude oil prices also negatively impacted the transport, communication and miscellaneous goods & services subcategories. On a year-to-date basis, the outturn reflected increases in the cost of food by 8.1 percent, transport and communication by 3.5 percent, furniture by 2.39 percent, housing by 1.9 percent and medical care by miscellaneous goods & services by 1.8 percent, the Bank reported. The food category increased on account of higher prices of sugar, honey and related products, meat, fish and eggs, fruits and fruit products, cereals and cereals products by 12.7 percent, 11.7 percent, 10.5 percent and 9.2 percent, respectively.
Transport and communication price indices increased on account of higher prices within the operational and personal transport category by 27.2 percent. This is as a result of higher crude oil prices which have been driven higher as a result of the Russia – Ukraine conflict, as demand has outpaced supply. In contrast, a price decline was registered in the category of clothing by 0.1 percent.
Poor pay
The dip in public sector employment has come as no surprise to stakeholders as they have argued against “poor pay” and working conditions that have forced the decline in state employment. In July the Guyana Public Service Union (GPSU) filed a court document against the government for not observing the legally required collective bargaining agreement that allows the union to bargain for wages and salaries and other workers rights. The Union’s president Patrick Yarde has argued that not only were State workers finding it hard to make ends meet with inadequate income, but that they were leaving the sector in droves. Specifically, the union president pointed out that while over the years, the loss of registered nurses had been an issue, he said now, even nursing assistants are being wooed away to foreign countries to provide their services there.
Chartered Accountant and Attorney Christopher Ram, continues to add his voice in support of workers getting better pay for the general improvements in the delivery of public sector services. “Truly, if the government doesn’t pay well, people will seek employment elsewhere,” Ram told the publication. He said that government, “…must return to collective bargaining and stop playing around with it as it is a constitutional requirement.” The public commentator had said too that, “People deserve to have better wages,” as what they are currently receiving is not enough. As the economy grows, he said workers salaries are supposed to reflect this positive change. Where there is global price increase in cost of living and Guyana is doing well given income from oil, he said that must also be reflected since failure to provide decent wages for citizens borders on a “human rights issue.” It was reported that central government employment increased by 0.3 percent from December 2018 to June 2019, while public sector employment fell by 3.3 percent at end of June 2020 and feel marginally by 0.4 at end of June 2021.
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Apr 19, 2024
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