Showing posts with label Papua New Guinea minimum wage 2014. Show all posts
Showing posts with label Papua New Guinea minimum wage 2014. Show all posts

Minimum Wage: Have Companies And Businesses Ignored 2014 Increase of K1.00 For Low Income Earners?

 Minimum Wage was raised from K2.20 to K3.20 in 2014. The increase was recommended by Employers Federation and Salary Commission and endorsed by a Parliamentary Working Committee on wages and salaries. Every employer must comply with the parliamentary directive as of 2014.  

There is also little known about employees’ benefits and how those benefits tie in with minimum wages. Unless employees are made aware of this by their employers, there is no reason why employees would get less than recommended minimum wage or salary.

If you are an adult, working fulltime (or Part-time) and know that you are among the minimum wage earners you should make sure that your hourly pay is NOT less than K3.20. Here is a table to help you.

In 2014 the Employers Federation and Salary Commission (EF&SC) conducted a 7-month investigation into wages and salaries of middle (to low) income earners in Papua New Guinea. They made several recommendations. One of the recommendations was to increase the minimum wage from K2.20 to K3.20

The EF&SC (who made the recommendation) or Employers Federation of Papua New Guinea (EFoPNG – who are supposed to inspect and ensure minimum wage is paid to workers) came out trumpeting that the increase must be complied with ‘immediately’ at the time of the announcement. 

Question of ‘compliance’ must be answered clearly. This can be done by government organisations responsible for ensuring workers are paid what they deserved. Right now there is a need to determine if companies have complied with government’s directive. But, who is going to do it?

If the Workers’ Union president is looking for something better to do, here is one thing he can do: call on EFoPNG to do its job. The employers’ federation has 22 inspectors stationed in every province. Have they done what they are supposed to do yet? 

What is the Department of Internal Revenue and Taxation done to make sure the K1.00 increase is paid to the low income earners? Their audit has to show how many minimum wage earners are employed by each company and how much they are paying them. 

Statutory organisations, who are supposed to put the interest of low income earners first, have got to do their jobs and continue to do it right. Companies and businesses who have not complied with the Minimum Wage increase must be reminded to remain true to their workers – pay them accordingly.  

Organisations like the Workers Union, Employers Federation of Papua New Guinea, Employers Federation and Salary Commission, Internal Revenue Commission and Department of Internal Revenue and Taxation MUST do what is right. 

It would be criminal – it is criminal, on both the government organisations and companies, if they failed to enforce the new minimum wage or failed to comply with it. Responsible authorities must follow up and ensure the minimum wage (K3.20) set in 2014 is paid to every eligible earner in the country. 



1. SECURITY FIRMS
2. LOGGING AND FISHING COMPANIES
3. CHINESE KAI BARS AND RESTAURANTS 
4. RETAIL OUTLETS AND WHOLESALE 
5. CONSTRUCTION AND SUB-CONTRACTORS 
6. PLANTATIONS 
7. NIGHT CLUBS 
8. FARMS
9. FACTORIES 
10. HOTELS

Papua New Guinea Politicians | We Don't Receive Enough To Support Our Lavish Lifestyles in Port Moresby or Australia - More

The politicians are getting massive pay increases since Sir Michael Somare was prime minister. Within seven years, parliamentarians would be receiving a whooping 82% increase in salaries alone.

  

Take a look at this. Sir Michael Somare’s government unanimously approved a 52% pay
rise in November 2010. A massive increase just before Christmas.

Puka Temu, the then Public Service Minister in Peter O’Neill's government, announced another increase of 7% in November 2013. Actually, that was backdated to 1st January 2013 and paid to each Member of Parliament before they went for their Christmas holiday.

During that announcement, the minister also declared a separate increase of 7.5% and 2.5% to be paid from 2014 to 2016 to every public sector worker, including the MPs.

For clarification, the 2013 increases were in three parts: a 7% one-off payment and a 3 year increase of 7.5% of the actual gross salary plus 2.5% of average salary. The average salary is all salary combined divide by number of earners.

Every servant-of-the-public will earn a 7.5%/2.5% increase, in installments, over a of course 3-year period, 2014 - 2016. By 2016, the public servants will have realised a 30% spike in their annual pay if the government remains true to its promise. That is 10% increment every year. 

Clearly, by the end of 2016 Papua New Guinea's politicians annual pays would have nearly doubled what they earned in 2010:

  • Prime Minister earns over K364 000;
  • Speaker of Parliament earns over K296 000;
  • DPM earns over K271 000;
  • Opposition Leader earns over K271,000 (same as DPM);
  • Government Ministers earn over K211 000;
  • Other MPs earn over K106 000; and
  • Provincial Governors earn over K74 000.
The amounts earned by politicians are exorbitant. Where is the moral of such increments? Such amount is more than enough to go with IF they had lived with their people. Sadly, they want more to sustain a lifestyle elsewhere other than their localities.

ExxonMobil-PNG To Take Defensive Measures By Cutting PNG Jobs Amidst Energy Price Collapse?

Pic Courtesy: ExxonMobilPNG Twitter
The tumbling oil price has forced major oil and gas companies to slash cost. FTSE 100 Oil and gas major, Tullow Oil, has cut back US$2.3 billion on expenses. Other companies in the energy sector are also cutting back as they are hit by over 60% drop in the Energy price in just seven months – Brent Crude Oil for example, has fallen by nearly 50% from US$110 a barrel to US$48 a barrel.

So, where does the huge fall (and continual dip in price) leave Papua New Guinea’s much-talked-about gas development led by ExxonMobil-PNG?

The PNGLNG development has moved onto production since April 2014. That meant that it has completed exploration and development phases of the initial project. To date, over 50 shipments have left the country.

At the peak of energy price, the Prime Minister of PNG (in a response to the Opposition questions) said one shipment was valued at, an average of, US$50 million – yes that is 50 million US Dollars. If price fluctuated at US$50 million ExxonMobil-PNG would have recovered the development cost in less than five years. This also means that if the company continues production at current rate, the time it takes to recover development cost would double. Would ExxonMobil-PNG want to recover US$19 billion development cost in 10 years, instead of 5 years?

The prime minister gave his response to the Opposition MPs when Energy price was at record US$110 a barrel. The price has, since, dropped to US$48 a barrel. Here is what ExxonMobil-PNG’s accountants would have worked out by now – value of a shipment would have averaged at US$25 million.

There is prediction that the price is likely to fall even further based on the fact that Opec countries have not slowed down on production to spike energy price. Major Oil and Gas producing countries like Russia, USA, Venezuela, Nigeria, Saudi Arabia, Libya, etc. have not reacted at all.

What can ExxonMobil-PNG do? Apart from shelving any plans for exploration and further development, one thing is for sure – ExxonMobil-PNG does not have to cut down on production. The company must produce at full capacity. This has to be done as the Opec group of countries are not cutting down on production, either. Their economies are dependent on oil and reducing production would have drastic consequences on government’s revenue. Russia, for example, whose economy is very much dependent on Oil has considered its options.  

A BBC report indicated that many oil and gas dependant countries have not cut down on production to spike Energy price. If they had cut-back on production their economy would have been shaken to the ground.

There are two defensive measures ExxonMobil-PNG can (has to) contemplate on doing. Look within its structure and readjust main expenditures. That would imply that ExxonMobil-PNG would have to either make adjustment to its expanses or increase production (and increase revenue).

Here is one option. First, ExxonMobil-PNG would have to reconsider its employees’ remuneration and benefit. Many top level employees may have to take a pay cut or agree to some in-house cost cutting measures, like halting fly-in-fly out arrangements.

Second, casual employees the company has used during (and in) exploration and development phases will have to be laid off. This also applies to apprentices, interns and others on the job training exercises. This could, probably, affect their awareness and charity programs too. 

Third, the project developer would have to evaluate performance of contractors. Those who have been given chance to partake in contracts awarded by the company will have to prove their worth to remain with it. 

Another option would be to increase production like what many Opec counties are doing by producing at full capacity - even increase production capacity. By doing this the company does not have to take the three measures highlighted above, but expand on each area.

This will create more opportunities and increase production – a win-win situation for the company, PNG government and every stakeholder who participates in this project.

All in all, it is eminent ExxonMobil-PNG takes defensive measures now by finding areas where cost can be minimised. But, any cost cutting measure taken in the name of maximising revenue for the company must not compromise Papua New Guinean jobs.

2014 MPs 10% Pay Rise | Prime Minister, the Highest Earner at K306, 000 - Ho! Ho!! Ho!!!



An increase in lower level public servants pay would be welcome. Many reforms are taking place in health, education and other departments. These reforms placed a huge burden on the implementers. The education reform, for instance, puts a lot of pressure on limited resources, including teachers. Any increase in their pay would compliment their work load.

In an earlier post, I commended the pay increase for teachers from 2014 to 2016 announced by Dr Puka Temu in November of 2013. But, why do the MPs get an increase almost every year? Do they deserve it? Haven’t they received enough? There is no point in awarding parliamentarians massive increases year on year to sustain their lavish lifestyles. No point at all.

Take a look at this. Sir Michael Somare’s government unanimously approved a 52% pay rise in November 2010. A massive increase just before Christmas. Ho! Ho!! Ho!!!

Puka Temu, the then Public Service Minister in Peter O’Neill's government, announced another increase of 7% in November 2013. Actually, that was backdated to 1st January 2013 and paid to each Member of Parliament before they for their Christmas holiday. Ho! Ho!! Ho!!! again.

During that announcement, the minister also declared a separate increase of 7.5% and 2.5% thereafter to 2016 for every public sector worker, including the MPs. What is unclear is whether this increase is evident from the MPs to community school teachers and community health workers.

For clarification, the 2013 increases were in three parts: a 7% one-off payment and a 3 year increase of 7.5% of the actual gross salary plus 2.5% of average salary. The average salary is all salary combined divide by number of earners.

Take a look at the calculation:




Every servant of the public will earn a 7.5%/2,5% increase, in installments, over a course 3 year period, 2014 - 2016. By 2016, the public servants will have realised a 30% spike in their annual pay if the government remains true to its promise. That is 10% increment every year. 

So, here is what our hard working servants of the public would have seen on their pay slips this year, 2014 with the first increase of 10%.

  • Prime Minister earns over K300,000
  • Speaker of Parliament earns over K250,000
  • DPM at the most earns K235,000
  • Opposition Leader earns over K235,000 (same as DPM)
  • Goverment Ministers earn over K183,000
  • Other MPs earn over K91,000
  • Provincial Governors earn over K64,000

And a Papua New Guinea classroom teacher will have received a compounded average of K21,525 for the year 2014

Happy Christmas and God Bless

PNG: Are You Earning the Minimum Wage - 2014?

New Minimum Wage (K3.20 per hour): Employers Must Comply Starting Now.

 Employers Federation of PNG (EFoPNG) has issued a NEW minimum wage to be complied with immediately. Every employer from Chinese kai bars to security companies and service stations must now increase their employers pay.
 
Reported on EMTV, 22 inspectors (in each province) from the department of labour and industrial relations will be out to ensure this takes effect.
 
This is a good call from the EFoPNG (Florence Willie). Many companies have FAILED before. For this to be effective, there are many unanswered questions:

¬What can an employee do if they a not paid the minimum wage?
¬How can they report non-compliant employers?
¬Who are they going to report to?
¬What is the proper channel to make a complaint?
¬What are the steps needed to reach an amicable solution?
¬How are complainant/employee protected from dismissal if they make a complaint?
¬ Who is the provincial inspector, where is the local provincial office for Department of Labour and Industrial Relations?
 
The EFoPNG and department of labour and industrial relations, CANNOT just slap employers with minimum wage and sit in comfortable offices in POM and expect miracles to happen. They cannot just expect employers to comply in a flick of a finger.
 
 Again, this is a good call. Please, come up with proper procedures and processes. Make sure employers start paying their workers the Minimum Wage.

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 If you are earning minimum wage, take a look at this table. It might be helpful. For example, if you work 6 hour, 5 days week, you fortnight pay MUST not be LESS than K192.00.
 

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