Dear Editor,
Who is drinking something other than cane-juice?
Not withstanding the already oversized and cost over-run, new factory in Berbice, I find it preposterous that the Guyana Agricultural and General Workers Union (GAWU) will unscrupulously press hard for a significant wage increase from a dying sugar industry, where losses last year were over $4.0 billion and this year losses will be just as bad. (See, ‘Strike cripples Sugar’, SN 10-24-2009).
Put more bluntly are the comments of the CEO, Mr. Errol Hanoman. He states, “…as of June 2009, over 35 percent of the industry’s cultivation was uneconomical, leading to extremely poor yields. … the financial situation facing GuySuCo was “grim”… at the end of September 2009, the company owed the Banks just over $5 billion and the loss for this year is projected at $2.5 billion…as of December 31 last year, the company owed its creditors $2.6 billion and as of last month $1.8 billion dollars. GuySuCo is also now seeing the full impact of a 36% cut in the price that it receives in its preferential European market.”
In the midst of an impending disaster, to ask for a substantial increase in wages (and they will get it), while productivity is falling is symptomatic of a system that is out of control, due to a conflict of interest (see letter, “Is there a Conflict of Interest in the State-owned sugar Indus-try?, SN 1-5-1999). That Mr. Hanoman is concerned about minimizing cost, improving efficiency and profitability at world market prices, and maximizing foreign exchange earnings, he is certainly on a path different from the one chosen by GAWU. In fact, GAWU appears to be only concerned with maximizing the share of revenue paid to labour and themselves as union dues; and minimizing the share of revenue paid into the treasury, a reasonable expectation for taxpayers who have been overburdened by an exploding sugar debt, a sugar import surprise, and no return on their investment.
So where is the owner, the owner being the people of Guyana through the Guyana Government? They are being held hostage by GAWU due to political affiliations with the PPP Government—-GAWU President Komal Chand ties President Jadgeo’s hand at every turn. Where is the Ministry of Labor that is expected to arbitrate labour-management disputes under the neutrality principle? The Ministry is in a coma, unable to arbitrate, unable to engage meaningfully. So what happens to Mr. Hanoman’s lofty ideas? They will be dropped and the union will be paid, as has happened in 1997 and 1998 when revenue and output were decreasing.
On the subject of production, what has been the response in the industry? Production in 2008 was 226,352 tonnes, certainly less than what it was in 2002 (273,703 tonnes) and 255, 638 tonnes in 1998. This is a sure sign of things not getting any better.
And what is the expectation for 2009? The sugar company, “is forecasting a production of just about 242,000 tonnes” in 2009. The reply to this statement by Union executive, Mr. Joseph of NAACIE, is categorical. He said, “…the
Unions doubt … the company’s ability to reach targeted tonnage of sugar for 2009.” Now, who is telling the truth and who is drinking something other than cane-juice? We will know in less than ratoon time, for both cannot be right.
Yours faithfully,
C. Kenrick Hunte
Kenrick Hunte well said I agree with you 300 percent! What we are dealing with is a set of workers who for decades used strike as a weapon against the former gov’t for political reason to undermine the economy. Remmenber the burning of young sugar cane and the military sent in to cut canes! Being conditioned to see the world this way it is hard for them to stop now. It is even harder for Komal Chand and Donald Ramotar to tell them anything for fear of personal attacks so they will go on striking to the death of the industry and debts of the economy. The union think because its PPP it is secured but there is a time to life, a time to think and a time to die.
How on earth can Komal Chand be a PPP Member of Parliament MP
and head of GAWU and pretending to be fighting down the
PPP Government for workers right ?, can someone explain this
PLEASE ?.
The poor sugar workers have been used as political pawns by the PPP for decades. The PPP has instilled in them this mindset that sugar will lead them to prosperity, rather than telling them the truth. This is why I don’t blame the sugar workers for fighting for a decent living wage despite the plight of the sugar industry.
Votes! Votes!! Votes!!! It all comes down to Votes Kenrick.
Say it again colin. All about votes…
When President Hoyte demitted office in 1992 sugar production was 246,900 tonnes. After 17 years in government and billions of dollars in investment in the sugar industry by the PPP, sugar production for 2009 is projected to be only 242,000 tonnes. What great progress? Under President Hoyte both sugar and rice productions almost doubled.
Under President Hoyte also, sugar workers received their largest wage increase.
soon all the Sugar estates will have to shut down and guyana will have more poverty.
Hunte you have spoken truth to power. The PPP does not like this. Watch and see how they will come after you for telling ‘lies’
GAWU and Jagdeo have brought this on themselves. King Sugar died long along but the naked Emperor and his subject don’t want to admit it. The country will be plunge in more debts and taxpayers will feel the brunt of Jagdeo ineptitude. For political gratification Jagdeo and Komal won’t tell sugar workers the truth and have them band their bellies until this cisis pass. The monster they created is now consuming them.
No wage hikes.Unions, or any one organization, must not be allowed to be in a position to exert leverage, that can affect or collapse the economy of a nation.The world is in a crisis and you are asking for hikes.No hikes.