In oil-rich Guyana Government can afford to pay teachers interim 20% increase

In 2024 the Government of Guyana in an oil-rich economy is refusing to pay public school teachers an interim 20 per cent until a new collective labour agreement is signed with the Guyana Teachers Union. In 1999 during the Public Service Strike the Government paid 25 per cent interim as part of the Terms of Resumption (see below). In 1999 the National Budget was $2.97 Million and Guyana was under the World Bank/IMF Structural Adjustment Programme. In 2024 the National Budget is $1.146 Trillion and Guyana is expected to earn US$2.8 Billion in oil revenue. Do the maths and ask the government to tell us why it is refusing to pay Guyana’s hardest working teachers.

See below the 1999 Terms of Resumption between the Government and Public Sector Unions

MEMORANDUM OF AGREEMENT

BETWEEN

THE GUYANA PUBLIC SERVICE UNION (GPSU)

and THE FEDERATED UNION OF GOVERNMENT EMPLOYEES (FUGE)

AND

THE GOVERNMENT OF GUYANA

Consequent upon the strike called by the Guyana Public Service Union (GPSU) and the Federated Union of Government Employees (FUGE), hereinafter called the Unions, on April 29, 1999 the said unions and The Government of Guyana hereby agree to the following terms of resumption.

Terms of Resumption of Work

1. The Unions will immediately call off the strike of their members and there will be full resumption by Tuesday 29th, June, 1999

2. There shall be no break in service.

3.  There shall be no victimisation on either side, e.g. transfers, terminations/dismissals, intimidation, retrenchment, demotions, etc.

4. The circular sent from the Ministry of Finance to the various Corporations and Companies limiting pay increases to a maximum of 5%, shall be withdrawn.

5.  Deduction of wages for the days employees were on strike shall commence from   week commencing November l, 1999 and shall be deducted over a seven month period in equal amounts excluding the month of December 1999. It is agreed that each striking public servant must be notified in advance of the total pay loss incurred by him/her prior to any deductions being made.

6.    (i) The sum of 201 million dollars advance payment shall be made. This amount represents an advance of the 4.6% increase for 1999 of $ 101 million, together with a Government extra-budgetary payment of $100 million, the status of which ‘will be determined by the Government in consultation with the Unions and mediation team within two weeks of the arbitration award provided for hereinafter, in addition to the foregoing a further $101 million will be advanced against year 2000 earnings, yielding total advanced payment of $302 million. This sum is to be paid in three tranches, $216 million at the end of June and $43 million at the end of July and August 1999 respectively. The amount advanced against year 2000 earnings will be provided from sources other than the Government of Guyana. The parties shall agree to the disposition of the advance payments as stated in appendix (i).

(ii) The Government of Guyana agrees to support GPSU/FUGE members employed by Corporations/Agencies who have requested an interim payment of not less than eight percent across the board for the year 1999 from their employers. The Government of Guyana agrees and undertakes to support the expeditious settlement of the current wage claims by GPSU/FUGE.

(iii) The sum of 4.6% ($101mn) for 1999 and $101mn (about 4.6%) for 2000 are non-refundable sums which will be deducted from the arbitration awards for those years or remain with the workers if the awards are lesser than those sums. The $100 million from non-budgetary sources will also be non-refundable if the award is lesser than the total sum for 1999.

(iv) After the GOG  gives its award the necessary retroactive adjustments will be made to overtime pay.

7. The GOG commits itself to appoint within (15) days of resumption of work a Commission of Inquiry under the Commission of Inquiries Act to investigate the occurrences which took place during the period of industrial strike — April 29. to June 23, 1999 with specific reference to the following:
8.       i) The police shooting of strikers and others in Water Street, on Tuesday, May 18, 1999.
9.       ii) Incidents at the Ministry of Finance on Thursday, June 10, and the Public Hospital Georgetown on Friday, May 21, 1999.

iii) Forced entry by the Police at GPSU Headquarters on the night of Wednesday, June 16, 1999.

1.        iv) It is the understanding of the parties that the President of Guyana may at her discretion specify such other matters that she may consider proper, without prejudice to the above.
2. The GOG and the Unions commit themselves as follows:

i.) Within fourteen working days of signing this agreement for resumption of work. the GOG and other relevant agencies will meet with representatives of the Unions for discussions with the view to resolving, other than wages and salaries: all outstanding issues, grievances, and claims in keeping with the existing agreement for the avoidance and settlement of disputes.

ii.) In future, where salary and wages negotiations fail to result in agreements and third party conciliation of 30 days fails, it is agreed that until entrenched into the collective agreement, the parties will in respect of future disputes adopt the same methods of arbitration as set out in this agreement.

iii.) All relevant and reasonable information required by the Unions before the commencement of the tribunal shall be supplied within ten working days of the receipt of each request. This process shall be monitored by the Mediation Team.

9. Arbitration
10. a)An arbitration tribunal will be appointed within one week of the signing of the terms of resumption. The tribunal shall consist of one member selected by the GOG, and one selected by the Unions and a Chairperson agreed upon jointly by the GOG and the Unions. (See Appendix Il for Schedule of Deadlines).
11. b)The purpose of the tribunal is to enquire into the existing differences between the Unions and the GOG in connection with:
12. c)i) Wages and salary increases for Public Service employees, including those för professional, managerial and technical grades for the years 1999 and 2000.
13. ii) The legitimate access of public service employees as part of the Guyanese community to access funding for poverty alleviation.

iii) The tribunal shall within 60 days of appointment make an award which shall be binding on both parties. Both parties shall agree with the tribunal the terms of reference of the arbitration.

1. d)The arbitration tribunal may accept and shall take into account any evidence in making its award save and except any agreement entered into by The Government of Guyana and third parties which, in the judgement of the tribunal frustrates the objective of free collective bargaining between the parties to this agreement.
2. The arbitration tribunal will be required to keep a record of the delays and at the end of the month state culpability. If, in the judgment of the tribunal, the government is responsible for the delays, the government will continue to pay monthly sums as set out in Appendix I. If the union is responsible it will be fined.
3. Unless there is a mutually agreed extension, or it is otherwise directed by the tribunal. The government undertakes to pay the Award within forty-five (45) days of its being made by the tribunal.