NIS not honouring claims made by sugar workers

Dear Editor,

The GAWU has learnt that the National Insurance Scheme (NIS) has recently taken a decision not to honour claims for sickness or accident benefits made by sugar workers from the beginning of the year. The Union understands that the NIS stance takes account of GuySuCo’s indebtedness to the Scheme. The Union, as part of its services, makes representation to the NIS, through its local and central offices, regarding outstanding claims of workers, among other things.

More recently, the GAWU and our sister union – the NAACIE – jointly wrote the NIS’ General Manager about the matter. In our letter dated May 22, we pointed out that the NIS is lawfully obligated to honour claims made by claimants even if employers would not have remitted payments to the Scheme. The NIS Act at Section 17 (1) (c) states:- “For treating, for the purposes of any right to benefit, Contributions payable by an Employer on behalf of an Insured person, but not paid as paid, where the failure to pay is shown not to have been with consent or connivance of or attributable to any negligence on the part of such person”. What the relevant section mandates is that a contributor must not be denied benefits on the non-payment of their contribution once they are not involved in any schemes aimed at defrauding the Scheme. Workers are undoubtedly not involved in any fraudulent intrigues and their contributions to the NIS are evidenced by their pay slips which indicate deductions were made from their wages and salaries. At this time, our letter to the NIS GM has not been even greeted with an acknowledgement much less a response.

Our Union, in the meantime, continued to follow up matters with the NIS when it was informed by an official of the Scheme, a few days ago, that a decision was taken to only honour claims made up to December 31, 2019. It, therefore, means that for the year, so far, the NIS, contrary to its own Statutes, has failed in its obligation to provide social protection to the thousands of sugar workers. The decision by the NIS will also affect the contributions of sugar workers as these, in all likelihood, are not being credited to their records. For workers nearing pensionable age, this could be detrimental, as it can well deny them their rightful pension or even a pension at all.

At this time, the GAWU calls on the NIS to honour claims made by workers. Undoubtedly, they would have anticipated receiving benefits from the Scheme having been unable to work, sometimes for long periods, arising from sickness or accident. The Scheme and GuySuCo should work out the Corporation’s indebtedness but workers should not be unfairly penalized.

Yours faithfully,

Seepaul Narine

General Secretary

GAWU