Recruiter for ExxonMobil contractor to rectify overtime rates

Attendees at the meeting on Monday (Ministry of Labour photo)
Attendees at the meeting on Monday (Ministry of Labour photo)

A company that recruits workers for one of ExxonMobil’s prime contractors, SBM Offshore has agreed to rectify the overtime rates paid to Guyanese working on the Floating, Production, Storage and Offloading (FPSO) platform.

A statement from the Ministry of Labour yesterday said that following a report in Sunday’s edition of Kaieteur News about the mistreatment of workers on the FPSO,  the Ministry of Labour on Monday called a meeting with the recruiting agency responsible for the welfare of the workers in question.

The statement said that Chief Labour Officer (CLO),  Dhaneshwar Deonarine met with senior management of Newrest Guyana, the recruiting company  which provides employees to undertake housekeeping, catering, food supply, and laundry functions for SBM. The meeting which was held in the Ministry’s boardroom was attended by Newrest’s General Manager, Antoine Morillon and its Quality, Health, Safety and Environment Director,  Nicholas Ali.

In response to the allegations of their workers being fed leftovers and not being able to eat among expatriates on the FPSO, the manager told the CLO that due to company protocol, the clients would usually eat first, then the service staff. In addition, Morillon said that service staff who are not on duty are allowed to eat among the clients.

The CLO also questioned the company about its overtime payment to workers, where it was found that in some cases the rates applied were not in keeping with the Factories (Hours and Holidays) Act. The senior management has since promised to have it rectified. This will include fixing the overtime rates and providing retroactive payments to properly compensate employees for previously paid overtime, all of which will be clearly outlined in employees’ contracts with the prescribed rates following the law, the release said.

On the issue of bonuses, the company said that bonuses are paid to certain categories of workers, whether they are expatriates or Guyanese. The company added that the staff in the laundry category, however, are not paid bonuses. The statement said that the CLO has also asked the company to submit a copy of its wages and leave records for the Ministry to verify that the labour laws are being adhered to in that regard.

Deonarine said that he was pleased with the company’s acceptance of its infractions as it relates to the payment of overtime and also commended its willingness to remedy them.

Newrest yesterday afternoon issued its own press release.

It said in part: “Newrest’s number one asset as a service company is its employees. Their well-being will always be a priority and discrimination claims are taken very seriously.

“The concerned employees will be received at the office by Newrest management and invited to share their uneasiness with their current condition.

“The company assures a continuous open communication between the team members offshore and the general management through a hotline and an integrity line is available for personnel to speak up.

“Newrest Guyana is committed to respecting Guyana’s labour practices and ethic code. Adjustments to labor contracts as per the conclusions of the Ministry of Labor will be effective from February payroll.

“Newrest Guyana takes pride in its involvement in the local economy; 92% of its team members are Guyanese; 98% of its service providers and 100% of its food suppliers are Guyanese. The company adopts a long-term strategy for the development of local skills with the support of hospitality school and agricultural entrepreneurs.

“Newrest is committed to uphold equal treatment for its employees and promote local content.”

SBM is a Holland-based global group whose main activity is to design, supply, install, operate and maintain FPSO vessels