As a result of the increase in the National Minimum Wage, RK’s Security Services has decided to terminate all government contracts, since the government has not agreed to pass on the increase to the security company.
This is according to Chief Executive Officer (CEO) of the company, Mr. Roshan Khan, who told reporters at a press conference today, Wednesday July 10 that as of July 15, all the security company will no longer provide services to several government agencies and ministries.
Mr. Khan contended that he is in full support of the new minimum wage, but is annoyed at the fast manner in which it was implemented, not giving the security company enough time to prepare and inform their clients.
“The major bug bare is that some of us who are serving certain governmental ministries, advisors and not getting an increase at this juncture,” Mr. Khan said.
As a result of terminating the government contracts, approximately 120 employees will be affected, the CEO said. According to him, he has written and expressed his concerns to several government ministers and officials, including Head of the Presidential Secretariat, Dr. Roger Luncheon and President Donald Ramotar.
However, the only response he received from some agencies is a letter acknowledging receipt of his correspondence.
“It is a vexing and disturbing issue. If the government is increasing wages for the workers, which we agree with, we have not had enough time to approach our clients for an increase, and with the short time that we have we are losing the contracts from those people because the economy is not as robust,” Mr. Khan said.
A national minimum wage of $35,000 per month was implemented by the government and took effect from July 1.
According to Mr. Khan, his company has requested that government pay them the difference of $62, but to date, they have not agreed to do so. However, Mr. Khan said that this is not adequate, as there is also overtime and the NIS ceiling increases.
“Everybody seems to be in mars…no one knows what’s going on,” Mr. Khan said.
