Gov’t not budging on new minimum wage start date

Last Updated on Saturday, 26 December 2015, 21:01 by GxMedia

The government says it will not budge on the new minimum wage policy and that employers who feel set upon can always opt out of the contracts they have with the administration.

The remarks by Cabinet Secretary Dr. Roger Luncheon on Thursday came a day after RK’s Security announced that it would be terminating its government contracts over the new wage structure and 40-hour week effective from July 1.

CEO Roshan Khan welcomed the new initiatives but called for more time before their implementation since they meant additional costs for employers with no increase in revenue.

Speaking at his post-Cabinet news briefing Dr. Luncheon said the Cabinet had addressed the concerns raised by the security and manufacturing sectors and remained convinced about the “morality” of its position.

“The administration intends to continue to seek that outcome, the minimum wage initiative being statutorily implemented across the board.” He added that there were opt out provisions in the contracts entered with government which aggrieved parties could feel free to invoke.

“The provision exist for them to give notice and say Luncheon I don’t want this job anymore, I’m gonna squash this contract … and it would then allow us to go back to tender and allow them to retender if they so intend or others,” he said.

Khan said they would begin the termination of government contracts from Saturday with 15 in the initial phase and the rest to follow on Monday.

Some 120 RK’s Security employees are reportedly going to be affected.