Head of the Presidential Secretariat, Dr. Roger Luncheon today said that government will not budge on the new minimum wage policy and that employers, who are affected, can always opt out of the contracts they have with the administration.
Only yesterday, Chief Executive Officer (CEO) of RK’s Security, Roshan Khan announced that it would be terminating its government contracts because of the new wage structure.
Mr. Khan contended that he is in full support of the new minimum wage, but is annoyed at the fast manner in which it was implemented, not giving the security company enough time to prepare and inform their clients.
At his post-Cabinet press briefing Dr. Luncheon said the Cabinet addressed the concerns raised by the security and manufacturing sectors and remained convinced about the “morality” of its position.
“The administration intends to continue to seek that outcome, the minimum wage initiative being statutorily implemented across the board,” Dr. Luncheon said.
He added, “The provision exist for them to give notice and say Luncheon I don’t want this job anymore, I’m gonna squash this contract … and it would then allow us to go back to tender and allow them to retender if they so intend or others,” he said.
As a result of terminating the government contracts, approximately 120 employees of RK’s will be affected.