Ministry to impose compulsory arbitration
Estates in the sugar belt from Skeldon to Uitvlugt went on strike yesterday, the second stoppage this month in a searing dispute over wages and the Ministry of Labour last evening announced that compulsory arbitration is to be imposed because of the grave situation.
Human Resources Direc-tor of the Guyana Sugar Cor-poration (GuySuCo) Jairam Petam said that the last meeting between the parties in the conciliation process occurred on Monday and a deadlock was declared by the Chief Labour Officer Mohamed Akeel because of an inability of the stakeholders to bridge a fundamental difference on wages. GuySuCo is currently offering 5.25% while GAWU is demanding 14.25%.
Petam stated that the next move that was supposed to be activated was for the parties to take the matter to arbitration. He said that GAWU had failed to follow procedural protocol wherein the union was supposed to officially notify the corporation in writing of its desire to effect strike action within 72 hours.
He said that on Monday evening, it was “intimated” to management by certain worker representatives that workers intended to strike for three days. Petam told Stabroek News that strike action for such a period would result in gargantuan losses amounting to 7,000 tonnes of sugar in the vital second crop.
Petam sought to reiterate that it was not a case where the corporation was insensitive to workers economic condition of hardship but that the financial status of Guysuco did not render the demanded pay increase feasible.
Injurious
The Labour Ministry in its statement said that Minister Manzoor Nadir had asked the Chief Labour Officer to advise both GAWU and GuySuCo that he had declared that any continuation of the dispute was likely to be “gravely injurious to the national interest and as such under the Labour Act compulsory arbitration will be imposed”.
The ministry pointed out that in March 2008, GAWU filed a claim with the sugar corporation for a 15% increase.
The two sides met on seven occasions but failed to reach agreement and the last offer at that time was 4.5% by the company while the unions sought 14.75%.
On August 13, workers on four estates downed tools over the deadlock in wage talks despite the fact that GAWU and the corporation had had a cordial meeting the day before and were moving towards conciliation. Observers had said the strike action had been pushed by militant workers and even GAWU had been taken by surprise. The strike lasted for varying days on the estates and work was substantially resumed on August 18.
Officials of the sugar corporation had related to the media at a press briefing on August 14 that 1% in the context of the industrial negotiations was equivalent to a $150 million and thus any acceptance of a 14 percent wage hike would result in bankruptcy for the corporation.
The Labour Ministry pointed out yesterday that during the subsequent conciliation the corporation moved from 4.5% to 5% and then to 5.25% while the union moved from 14.75% to 14.25%.
Noting that the imposition of compulsory arbitration was by virtue of the powers vested in him under Section 4(1) © of the Labour Act, Nadir also criticized GAWU.
Abused
“The minister has reminded the union that there were breaches of the Collective Labour Agreement during the course of bilateral meetings and also during conciliation workers of various estates went on strike in clear violation of the Collective Labour Agreement. This present strike, the Minister noted, is no different except (that) this strike has caused a shutdown of the industry’s production and can severely damage this industry forever”, the release said.
Nadir also said that the strike weapon is most often abused in the sugar sector and urged the leader of GAWU in the fields to be responsible and respect the grievance procedures. The minister urged that the strike be called off.
The Guyana Agricultural and General Workers Union (GAWU) in a press statement issued yesterday afternoon said it wished to confirm the ceasing of field and factory operations within Guysuco’s sugar estates in Berbice and Demerara.
The release noted that the union and the Corporation having failed at bilateral negotiations to resolve the difference between the Corporation’s offer and the Union’s claim for an increase in pay, jointly requested the conciliation service of the Ministry of Labour.
It said Akeel intervened on August 18, 2008 and after holding three meetings with the Union and the Corpora-tion, declared a deadlock on August 25, 2008 with the Union demanding a wage/ salary increase of 14.25 per cent and the Corporation offering 5.25 per cent.
It was underscored that workers have been experiencing a significant rise in the cost-of-living especially last year (2007) and this year. Last year’s 8.5 per cent increase in pay was far below the inflation of 14 per cent. This year’s offer by the Corporation, it was asserted, is also below the declared half year inflation rate for this year. The Bureau of Statistics recently said that the inflation rate up to June this year was 5.8%.
The Union continued that it follows that the purchasing power of the ordinary workers has been continuously eroded in the light of the ascending cost of living. “We wish to renew the call that increase in pay for all workers ought to be greater than the rate of inflation.”
The Union, the press release articulated, wished to note that if the Corporation fails to maintain competitive rates of pay there will be a dwindling of its labour pool similar to the days of the latter 80’s and early 90’s when the industry was plagued by the lack of an adequate workforce. In those years sugar production declined considerably as follows 1988: 167,550; 1989; 164,800; 1990: 129,920 and 1991: 156,690.
GAWU argued that the major problem of the sugar industry lies with the poor management of the Corporation. Over the years 2005-2007 sugar production averaged 260,000 tonnes declining from its average production level of 320,000 during the years 2002 to 2004.
The union said it wishes to recommence negotiations but with a more reasonable offer by the Corporation which could be the basis of a negotiated settlement and called upon the Corporation to set the stage for an immediate resumption of the discussions and an end to the strike.
A press release yesterday from the other major sugar union, the National Association of Agriculture, Commercial and Industrial Employees (NAACIE) noted that it is aware of the industrial action now taking place in the sugar industry. The Union posited that it is not surprised adding that it is “well known that there is no trust existing between Management and the workers in the industry so promises are written on ice.”
NAACIE stated that the “high cost of living has been outrunning the meagre wages paid to the hard working employees for the past years with annual wages way below the National inflation rate compounding the loss in the value of real wages.”
NAACIE moreover posited that the naming of workers’ industrial action “wild cat strikes” is an insult to the intelligence of the workers that produce the largest amount of hard currency. “The Unions in the industry have been advising GuySuCo of the impeding action but again, the Company has been taking their employees for granted.” NAACIE stated that it is in full support of the workers represented by GAWU on strike in the sugar industry.
The latest unrest comes amid the government’s commissioning of a review of the sugar industry. The review will recommend corrective actions to be taken by GuySuCo to meet production forecasts and scrutinize areas such as the suitability and standard of current operations.
The government last week announced that a review of the sugar industry would be commissioned for the period 1997-2008 in light of falling production and there have been increasing questions about the stewardship of GuySuCo which has been under management of Booker Tate since the early 1990s.
Separately, government had announced earlier that the management contract would be put out to tender next year. Last week, President Bharrat Jagdeo told a seminar that he had read the “riot act” to GuySuCo management over the drop in production. A large sum has been expended on the industry to improve production.
In a request for tender document released to the media on Saturday, the government cited a decline in sugar production since 2005 as one of the major reasons behind the ordering of the review. The document notes that in 2002 the industry produced 330,000 tonnes of sugar – the highest level since nationalization – but ever since it has fallen significantly. It noted that the Great Flood of 2005 and other weather factors had a serious impact on production that year which fell to 246,000 tonnes. “Production has struggled to regain the levels attained since the early 2000s and (GuySuCo) is forecasting 285,000 tonnes production for 2008”.
This figure may now be in jeopardy because of inclement weather and the strikes.
i think the sugar workers and the union is taking advantage on guysuco…..they can accept the 5.25%..and continue work while negotations still goes on…but the follow the union and strke…who is the loser them and the country……the union don’t pay them to sit at home…….but they pay the union ……….it is better to have $10.00per day than to sit home and don’t have a cent…………………come on guyanese people we no cost of living is hard and by striking you make it harder on your self family and the country………….
This is not about wages! This is about politics! How can a major segment of the PPP support base choose now, when the PPP government has spent millions to promote Carifesta and project a positive image of itself to the Caribbean and the world, to go on strike?
Like Forbes Burnham and the first Carifesta that was intended to coincide with his political ambitions as regional leader, Bharrat Jagdeo is using this year’s Carifesta to coincide with his political ambitions to shore up a sagging leadership performance and the terrible shape the country is in despite its raw potential to do better.
But the PPP support base has read into the PPP’s modus operandi and concluded that there is a disconnect between the PPP leadership and the support base. A message is being sent to teh PPP: “We will not just rain on your Carifesta parade, but we will boycott the 2011 elections if you don’t pay attention to our demands!”
Let us hope that patriotic workers and patriotic managers sort this out with imaginative compromise.
Without compromise, things become needlessly difficult.
l have cousin who are cane cutters (harvesters as they are called now) who has been complaining for the longest while that since the introduction of cane ripener which retards the growth of the cane while maintaining the sucrose content.
They are being short changed, since they are paid according to weight: less growth = less moisture / weight. l told one who is a GAWU Rep. that they should have the union renegotiate for them to be paid on the basis of sugar produced.
As they insist that they are cutting the same amount of beds & loading the same number of punts but the wages keep going down. This is what Guysuco and Gawu need to sit down and address and stop the charade, cane cutters are leaving to plant cash crops, rice and tends their cattle rather than put up with their current conditions of employment.
During the out of crop three or four days pay when you are lucky cannot sustain a family – it is the reality and with the escalating cost of living you can help but side with the workers. Cane cutting i know is arduous work – my mother did it.
While the union may be playing politics with Komal Chand sitting on Guysuco’s board the workers must be told the truth and be given their fair due.
Why are you living outside of Guyana? Why de hiibhy don’t you return to Guyana to live? I challenge you to return to Guyana, live and work and accept 5.25% increase of salary cutting cane in de backdam, I want you to bun in de sun. Don’t stay in America, come back to Guyana and face reality with the high cost of living. Why you run out from Guyana?
The action in this fight: “The left brain is working the left jab, the right brain moves to the left and counters weakly with a roundhouse right.” So far ther hasn’t been seen any clear strategy on the part of either fighter to win this fight.
Anybody catch my drift …………………………………………………………….!!!!
WHAT?
Yea, I catch your drift. This is a big show. They want to funnel money to their supporters, but cannot just give it to them when they denied the public service, so go througt this big show, then agree to GAWU demands. What GPSU should do now, is strike in solidarity and demand the same. Let’s see what they will do then.
Sugar workers and their union should consider the national interest here. Their strike is costing GUYSUCO and the government a lot of revenue. Who lose but themselves?
Sugar Workers have to live too, there is only so much that they can consider the national interest here, when ther are starving, or don’t know, if they have enough money to go to the shop and buy something or thir families to eat, or send there children to school.
Sugar workers are working like a slaves and all the Booker Tate managers are enjoying the perks. Cane workers cannot trust management of the corporation. What kind of Finance Director they have? He cannot properly do the budget. He is approving all kind of perks for Management while cane workers are struggling to get any incentives.
It is unfair to blame cane workers for any disaster. Govt. should fired the Mangement for the disaster. Management fail to advise Govt. that investing in new factory was a bad idea. All the profit and cash flow is wasted in new factory.
FIRED THE MANAGEMENT NOW. REPLACE IMMIDATELY CHAIRMAN, CEO, AND FINANCE DIRECTOR.
CANE WORKERS DO NOT TRUST GUYSUCO MANAGEMENT. MINISTER SHOULD NOT FORCE ANY CANEWORKER TO WORK FORCEFULLY. STAY OUT OF OUR LIVES. WE ARE FEDUP WITH THIS MANAGEMENT.
CORRECT IS RIGHT!!
…… so there ,, all u who are just delivering conjectures ! SWAMI PERSAUD is giving it to u from the horses mouth !
what say u all now ?,,,,, there is another colour on the canvas now ! that somehow has added light to the whole painting……
as for the waste that is ,, SKELDON…. how much more visionless can u b ,,, now they are planting the cane to feed the beast that will soon consume those whose lives are an integral part of the factory……
the minister with the MBA is administrating on policies of agriculture,, is he an agronomist ? on land preparation ,, which includes drainage and irrigation,, is he a D&I engineer ,, on how to rear and care for cattle and live stock ,, is he vet? how sugar is produced and the benefits of a super modern factory,,, a subject of experience for this beneficiary of nepotism,,, will the minister with the MBA plz stand up and tell the nation when is the season for the fishing of red snapper ?
Look thsi is not abotumanagment The management is under a lot os pressure more than u can imagine and certain people might be used as scapegoats.You should belive everything you read. Soem stories are de;ibertley printed to make you think another thing alright!
How much longer can Guysuco survive? With declining income and not much buffer, the company will be in the red. Will the government subsidise the industry or will it be privitised?
SUGAR WORKERS IN GUYANA DESERVE BETTER WAGES. DURING THE YEARS WHEN THE PPP WAS IN OPPOSITION, SABOTAGE WAS RAMPANT. SEVERAL OF YOU READING THIS MAY REMEMBER THOSE WHO TOOK PART, I CAN.
THE PPP WAS AGAINST THE SUGAR LEVY, THEY ASSUMED POWER AND THEY DECIDED THAT THE SUGAR LEVY IS GOOD. SUGAR WORKERS CONTINUE TO SUFFER. THE GOVT. SQUANDERS MONEY HERE AND THERE. THE POOR WHO SACRIFICED THEIR LIVES FOR THE PPP GOT NOTHING, I REMEMBER THOSE WHO BELIEVED IN CHEDDI AND WORSHIPPED HIM. THE PNC ALSO HAD THE SUGAR WORKERS UNDER SIMILAR POOR CONDITIONS. FROM 1966 TO NOW, CONDITIONS IN GUYANA SHOULD HAVE BEEN ON PAR WITH THE REST OF THE CARIBBEAN. TODAY SEVERAL WORKERS AND FELLOW GUYANESE FLOCK TO THE CARIBBEAN AND BEYOND FOR BETTERMENT. POLITICS IN GUYANA IS ROTTEN.
How long Govt. can subsidise sugar industry? Need new management now.
We must act now to save Guysuco otherwise Guysuco will be history just like CARONI SUGAR in Trinidad.
President must understand that most of the cane workers are PPP supporter. They will not forget this issue in next election.
That need not be the case, l recently read that B’dos with Brazilian support is turning to Ethanol – we can do the same with the Demerara estates – Where is the foresight? Ethanol from sugar cane is far cheaper to produce than with grains corn et al.
Just imagine B’dos and J’ca are into ethanol big time and we who are joined to Brazil at the hip with all the arable lands in the intermediate savannah and Canje (west) basin are being bypassed – SN should investigate what is the story there Mr Moderator.
Talking about lack of foresight, despite the years of delay of the Skeldon II project (factory), more than half of the required acreage has not been cultivated.
People, people, GAWU is in cahoots with the government so of course the poor workers won’t get the amount they deserve. The whole ‘negotiations process’ is a farce.
You should speak only of what u know, don’t speculate! we both know, that this is nonsense u are uttering, if government was in cohoots whith GAWU, the workers would have gotten 4 .25% not still be bargaining or striking, but i guess that blaming the government is the order of the day for everything , i guees if a dog get knock down on the road you would blame the government too, for building the road there!
The estates are at a standstill and the labourers are at home, seems to me that they are all losing money , the main factor for this strike. Since Guysuco management and the Guyana Agricultral Workers Union are locked in a stalemate over the issue of a reasonable wage increase that shows neither party compromising, then they should meet half way on what the sugar workers need for their labour. The union is currently demanding 14.25% but Guysuco is offering only 4.5% which in my opinion is rediculous and need to be review and reoffer as 7.5% or 8% flat, this way, it’s a win, win for both Gaoysuco and the sugar workers and their families. Remember, cost of living is high, so give them something.
well time to end the fight, all they have to do is turn to modern technology, mechanical harvesting, what will the cane cutters do then.