Government Recommends Meeting Between Management Of Gravel And Concrete And Trade Union To Resolve Dispute Over Profit Sharing

PR –  The Government of Grenada has advised the  management of the Grenada Gravel Concrete and Emulsion Production Corporation to  initiate a meeting with representatives of Grenada Technical and Allied Workers Union  (TAWU), which represents workers there. 

Workers at the corporation downed tools on Thursday to demand the payment of the  annual profit-sharing. 

According to the collective bargaining agreement between the corporation and TAWU,  permanent employees are expected to benefit from 15% of the company’s annual pre-tax  profits while contract staff receive one month’s salary.  

The corporation did in fact record a profit during 2019, the year on which this year’s profit  sharing will be based. However, with the impact of the COVID-19 pandemic and the  closure of business operations during the period of lockdown, the company faced a  significant reduction in income, while at the same time, continuing to pay workers  throughout the period of inactivity. 

Additionally, millions of dollars have been invested in capital expenditure, purchasing new  equipment and refurbishing or upgrading existing machinery with a view to improving the  corporation’s capacity and the efficiency of its operations.  

With the pandemic creating a very uncertain business environment, based on its  widespread impact, there are serious concerns that the payment of bonuses could impact  the corporation’s future cash flow, jeopardise jobs and offset further capital expenditure  plans to enhance operational efficiency. 

Government believes urgent dialogue between the corporation’s management and the  union representatives should examine the situation, with a view to determining the  medium to long-term impact of profit-sharing this year and a more responsible timeline  that will satisfy the needs of all concerned. 

Government notes that the dispute over profit-sharing comes at a time when hundreds of  other workers across the country, have been on the breadline since the onset of the  pandemic in Grenada.