FOR the fourth week in succession, workers of Lake Asphalt (LATT) will be going home without pay.
LATT’s CEO Roger Wiggins said the company is experiencing a cash flow problem.
“We weren’t timely with the payments because of some of the challenges we were having with our cash flow.”
He said the company is working with the Government and other stakeholders “to make payment available to the employees as soon as we can.”
Responding to queries via text message, Energy Minister Stuart Young said, "This matter has been brought to my attention and at the Ministry of Energy level.
"I have been in contact with my colleague the Minister of Finance and with his assistance, the two ministries are making an intervention to alleviate this.
"I have also been working with the chairman of Lake Asphalt to have this dealt with. I trust that it will be resolved in the coming days."
Wiggins said the cash flow problem was evident before the pandemic but has worsened since, because some of the company's markets are no longer lucrative and others have dried up.
He explained that its traditional international markets, specifically the Chinese market, “would not have been taking products as they usually have.”
He said the German market, while consistent, has not been taking the volume that would make revenue surpass expenses.
“Then in the local market, local road-paving project would have slowed and then the opening of the market to bitumen would have caused some challenges.”
President of the representing Contractors and General Workers Union (CGWTU) Joseph Phillip said they are worried about the future of the company and its implication for La Brea.
“La Brea is a depressed community and Lake Asphalt is one of the oldest companies in this community. It is a bread-and-butter company because it is labour-intensive and employs a lot of people from the community, either on a casusal or permanent basis.
“This is four weeks now workers who usually get paid every Thursday, will be going home without a salary. They were supposed to get their money on May 25. Now I am being told they may get one week’s salary on Friday.
“So what happens to the other three weeks, and what will happen down the road?"Workers should not have to pay for the mistakes the board and management have made in spending the money bad.
“Workers come out to work every day because they have loan payments, other financial commitments, What are they to do when they work and cannot get paid?”
Phillip insisted, “Someone has to come out and tell us what is happening. Be honest with us.
“There must be a conversation, a discussion. Workers want to kill me because I cannot give them any assurance.”
Expressing condolences on the passing of energy minister Franklin Khan, Phillip said three weeks ago he wrote to Khan’s successor Young asking for a meeting.
“He has not responded. He is aware of what is happening at Lake Asphalt, the MP and Labour Minister Stephen Mc Clatchie is aware, and so are the board and management, but nobody is talking to us.
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