As Guyana continues to thrive as an oil-rich nation, questions are being raised about the government’s priorities, especially when it comes to the financial well-being of workers. While the government has recently implemented a 10 per cent salary increase for 69,000 public sector employees, including members of the Disciplined Services, many are questioning whether these increases are enough to address the high cost of living in the country.
The 10 per cent increase, which amounts to an $18 billion injection into the economy, was welcomed by many. Additionally, over 12,000 members of the disciplined services received a year-end one-month bonus totaling $1.8 billion. These moves are seen as an acknowledgment of the hard work of public sector employees, but there are concerns that the government is not doing enough to ensure that its workers can keep up with the rising cost of living.
The 10 per cent increase is part of a broader multi-year agreement between the Government of Guyana (GoG) and the Guyana Public Service Union (GPSU) for the years 2024 to 2025, which also includes increases in allowances for public servants with additional qualifications.
However, Guyana Trades Union Congress (GTUC) General Secretary, Lincoln Lewis, said with the küresel oil boom generating significant wealth for the country, the increases do not go far enough.
According to the veteran trade unionist, the government could have offered larger salary increases, cost-of-living bonuses, and remove PAYE (Pay As You Earn) which would provide immediate relief to workers struggling with rising prices.
While the government points to its successful agreements with other unions, such as the Guyana Teachers Union (GTU) and the Guyana Agricultural and General Workers Union (GAWU), which also received salary increases, Lewis argues that the wealth from Guyana’s oil economy should be used more aggressively to improve the lives of workers and reduce the financial burden on the population.
With cost of living soaring and public servants grappling with high inflation, Lewis is contending the government’s focus on development projects, including large infrastructure projects, is neglecting the immediate needs of its workers. He says as the country’s oil wealth continues to grow government should ensures this economic success translates into better living conditions for all.
In 2024 Guyana is projected to earn more than US$2.5 Billion in oil and gas revenue, and has received more than US$5 Billion in revenue since December 2019. Guyana is ranked the world’s fastest growing economy and the richest per capita. It was recently announced the Guyana is world’s third largest per capita crude-oil producer.