Dear Editor,
Sugar workers returned to work on (Friday) November 6, 2009 after they were engaged in a week’s strike over the non-settlement of their wage dispute with the Guyana Sugar Corporation Inc (Guysuco). The company’s Chief Executive Officer (CEO), Errol Hanoman in the November 5, 2009 edition of Kaieteur News stated that Guysuco would have to extend the crop by two weeks and possible rains might force lower production estimates for next year. A reliable source advised that the corporation as at June, this year, forecast that Guysuco would produce 320,000 tonnes sugar next year, but as at last month a new estimate indicated a production of 280,000 tonnes. Will Guysuco answer what factors have caused the estimate to be slashed from 320,000 tonnes to 280,000 tonnes? After 280,000 tonnes, what would be the new estimate?
Regarding the extension of the current crop by two weeks, this is not an unusual exercise. In fact, the crop weeks had been extended before the commencement of the just concluded seven-day strike.
The corporation’s crop schedule entitled ‘Guyana Sugar Corporation Inc Factory Production Schedule – 2nd Crop 2009’ outlines the closure of the current crop as follows:-
Estate Conclusion
Skeldon October 23
Albion November 13
Rose Hall November 27
Blairmont November 13
Enmore October 16
LBI September 25
Wales October 23
Uitvlugt October 16
Indeed the industry is in a dire financial situation, basically because yearly sugar production is dwindling. Two decades ago the industry had been producing less than 200,000 tonnes of sugar and was facing a major challenge to its survival. Now the industry’s production is just above 200,000 and hence the current catastrophe of the industry. Production, production, production is Guysuco’s conundrum.
The corporation lauds its turnaround plan also known as the Blueprint for Success, which indicates a sugar production of 400,000 tonnes in 2012 and 440,000 to 450,000 tonnes by 2015. Yes, the bankers and the creditors have confidence in Guysuco which holds significant assets and thus their confidence in the industry will remain high. Do not argue that the corporation must not invest in its workers – the prime stakeholders without whom the industry’s attainment of 400,000 tonnes in 2012 would not be possible.
Had Guysuco stuck to its own decision by letter dated October 29, 2009, which reads, inter alia, as follows: “As you are aware, the Chief Labour, Occupational Safety and Health Officer, Mr Yoganand Persaud at 11:50 am this morning declared a deadlock in the conciliation over the wages and salaries negotiations between the Corporation and your union for the year 2009.
Therefore, in keeping with the provisions of Clause 5(2)(i) of the Memorandum of Agreement relative to Recognition and Avoidance and Settlement of Disputes, the Corporation hereby solicits your consent to refer the matter to an arbitration tribunal for determination,” and engaged the union in referring the dispute to arbitration in accordance with the extant Procedural Agreement between the union and the company, the seven-day strike might have lasted a mere one/two days. Why is the corporation now crying crocodile tears?
The strike having ended on November 5, 2009, the canes that were unprocessed as at November 2, 2009, to wit 3,600 tonnes, have been harvested as at November 6, 2009 and processed into sugar except for a small quantity that would have yielded about 100 tonnes of sugar.
Yes, the excellent weather would persist. The Metrological Office advised that the weather would remain dry for the year with sporadic showers. At the end of the crop Guysuco ought to give an account of canes, if any, that remain unharvested. Then we shall know exactly what quantity of harvestable canes were in the field this year.
Yours faithfully,
Seepaul Narine
General Secretary
too much wild cat strikes in the sugar industry,separate politics from sugar and the industry will prosper
Separate the sugar industry from government ownership and yes you will have a better, stronger more properous industry.
Jagdoe and his crew have failed at government what makes us think they can run a sugar corporation?
The only way the PPP will succeed in the sugar business is if they put Captain Rohee to run Guysucko.
“Yes, the bankers and the creditors have confidence in Guysuco which holds significant assets and thus their confidence in the industry will remain high. Do not argue that the corporation must not invest in its workers – the prime stakeholders without whom the industry’s attainment of 400,000 tonnes in 2012 would not be possible”-Seepaul Narine.
I can’t help but notice this piece of negotiation leverage the union is running with. Yes, barriers to exit are high in the sugar industry in Guyana but such an industry condition never served as a reason to get infinite support from a banker. On a bank’s balance sheet there is something called “provision for bad debt.”If Mr. Narine thinks that the creditors wouldn’t activate that provision to deal with Guysuco’s debt he is in for a rude awakening. There comes a time when all lenders will stop pouring money down a bottomless pit and cut their losses. In Guysuco’s case, that might be sooner than Mr. Narine thinks. Perhaps the corporation agreeing to a wage increase could be the trigger hence dumping the burden of financing on the government and the taxpayers. Such a situation would make it worst for the sugar workers themselves and others because higher taxes and higher inflation now become the financing mechanism for the sugar industry.
As far as Guysuco’s turnaround plan is concerned I am not so sure that it will work. I see the emphasis is on the revenue side (increase in tonnage output etc) and which is good, but I am not seeing an equally aggressive effort to address the cost structure of the corporation. I believe that the cost structure should be built around a break-even point at around 200,000tonnes and the reason for this is the corporation doesn’t seem to be able to produce substantially more sugar than that over extended periods. Can Guysuco come up with a break-even value of around 200,000tonnes? If they can’t then perhaps they are not worth saving as a corporation.
Just to put this in perspective, with Guysuco currently operating on government subsidies Guyanese taxpayers who are struggling to make ends meet are helping to buy the sugar for an European resident driving around in a BMW or similar car. Guyanese need to ask themselves if this is not a recipe for them and the country to remain poor as they help the rich to buy the things he needs. I never understand third world decision makers.
Bottom line, Guysuco MUST be a profitable corporation for it to have any value to Guyana and Guyanese and that includes the sugar workers themselves.Union needs to get in bed with management.That board seat being offered should be accepted.All parties have skin in the game.
Seopaul Narine, you people are shameless and self-destructive. Sickening!