President Bharrat Jagdeo said yesterday that a new strategy for the slumping sugar industry here hinges on the support of the workers in the fields, citing poor attendance as one of the more visible problems affecting critical recovery.
The issue of mismanagement in the sector over the years and questions about the Skeldon factory are to be addressed Jagdeo said, but he equated more solid commitment from workers in the industry with progress.
The head of state’s comments came as he addressed the opening session of the 19th Delegate’s Congress of the Guyana Agricultural & General Workers Union (GAWU) where he argued firmly for workers to recognize how critical their continued involvement is.
“We need people to cut the cane when it is in the ground… everyone needs to pull their weight, [the industry] had a rough patch but things will get better,” Jagdeo said.
GAWU President Komal Chand spoke before the President and he singled out mismanagement by the previous Booker Tate management at GuySuCo as a major factor in the industry’s current decline. He said too that the delay in the start-up of the Skeldon factory contributed to the poor production output last year.
Chand said that worker’s continued to struggle for better wages and improved working conditions, adding that the pension is “a pittance.” He said too that the issue of regular employment needs to be addressed as workers in the industry grapple with a myriad challenges.
Further he noted that significant government support is needed to lift the industry from its current slump. Chand argued that sugar remains the mainstay of the economy and forcefully questioned what is there to replace it should the industry crumble.
The President took to the podium immediately after Chand and he declared that the administration has made the largest investment “ever in the sugar industry” by pumping US$200M into the Skeldon modernization project to build a modern factory. This, he said, represents a commitment, which “stands out in the face of investment in sugar” drying up in some Caribbean countries.
“Some people have decided not to continue with the sector but we have, government has committed to the Skeldon factory and also the packaging plant at Enmore,” Jagdeo stated.
Jagdeo said that the reality of local sugar must be understood in the context of a sharp price cut from the EU and less focus on mismanagement. He noted that management has changed at GuySuCo, adding that “it’s not about management,” but rather the workers.
The President declared also that he is prepared to say give GAWU the industry and offer the workers a chance to “reap the benefits and invest in the industry” minus government support. But he countered that the union would never agree because the industry is making a huge loss.
He urged workers to be reasonable and to work towards upping production to over 300,000 tonnes. He said too that the Skeldon factory must be allowed to operate at 95 per cent and not 78 per cent, adding that cane cultivation needs to increase.
Additionally, he said that while the administration will always defend the workers’ right to strike there is a procedure to follow. Jagdeo said that he is asking that the people who “lead these wild strikes” go through the grievance procedure which the union signed with the company.
GAWU’s congress is being held under the theme, ‘Advancing social development through greater workers’ democracy.’ The union said that it is meeting at a time when sugar here and globally is in trouble and as the global economic downturn is impacting heavily on developing countries. The congress wraps up on Tuesday.
What about mismanagement by some of the Guyanese that occupies top positions?
The workers today are a different breed from the older generation, they have no pride in themselves. However, they cannot be totally blamed as the people supervising them in the field have not come through the system and does not understand the basic.
The other operations such as planting, fertilising etc need to be considered. Lots of fertiliser is wasted when it is not thrown directly at the roots, it is distributed as done with the rice crop and this leads to more weeds and money to get raid of the weeds.
There are many ways of cutting costs and I suggest very simple one – I challenge the management, union, government and workers to cease the weekly cash payment to workers, change the system to monthly automatic bank transfers. This will save the cooperation millions on a weekly basis.
I guess Jagdeo and his government failing to complete a business plan and send to the EU so they could get the 1.6 Million EU dollars is not an issue.
Jagdeo the sugar workers are checking to make sure that cutting cane for you is in line with their macro economic goals.
People Please! There is no way Sugar is going to survive, the PPP has a mandate to find alternative employment for its supporters and stop fooling them, inevitably this industry will collapse; it is time they stop playing politics. they should have used that 200M to open a Fruit Juice manufacturing plant which will export its produce to all the Caribbean, and Latin America.
a fruit juice company to work 3-4 months a year.
then what, import fruits to keep it running.
freespeech not even you dont have any confidence in the pee pee pee. everything is falling down with them. when they cant run even a fruit juice company what can they run ?
Najbar, You are correct, Sugar will fail despite all the crap coming out of Freedom House. Sound economics tells that, only dunces are in denial.Their ex boss Cheddi knew nothing about economics save the parroting all communists learn to regurgitate. Europe will buy all the fresh fruits and juices Guyana can supply if the administration use commonsense.Read Sweetening bitter sugar and know what Cheddi thought of sugar workers.
Ever heard of the expression “out of crop”? Sugar is seasonal work too.
Difference is that during the out-of-crop guysuco is obligated to provide work to workers regardless of whether there is work to do or not.
Wise…
Chand is wondering what would replace the the industry should IT crumble…….Dem BIIIG! BIG BUSINESS MAN.The SMALL MEN do not count,the govt. always seem to forget who is the drive behind the wheel.Now Jagdeo is callin for support of the cane-cutters..GET SOME COMBINE TO CUT THE CANE and we will see how far and how often he will be able to FLY all over the world LIKE IF Ë HAF WINGS or on LONG TERM VACASION
The majority of the members of G.A.W.U. are supporters of this dictatorship and must now live with the fruits of their votes. What you sow that shall you reap. Sugar is an industry facing competition from cheaper substitutes but there is no evidence of diversification from this intellectually bankrupt government because of the fear of antagonizing a significant portion of its base. Too bad, but bauxite workers had to bite the bullet when the price of that mineral tumbled on world markets. The same sacrifice is expected of the sugar industry when market conditions negatively affect the price of sugar.
I’m on your side with this BORAPORK. The sugar industry is
falling apart and the Government is trying it’s best to
keep it going for their supporters, when the bauxite industry
was falling apart the PPP Government had little or no time
for the workers in the mining town, because the workers there are not supporters of the PPP. Rain don’t fall at one man door
Mr President.
the bauxite co. was falling apart way back in the 80’s.
any thing burnham touch turn into s$*^&*%^#.
I suppose that left the sugar industry alone right?
The very simple solution to the problem is happy workers produce great results if they are satisfied with what they earn and living to a better standard morale and production will get higher when that is fixed the problem will dissapear.
The government of Guyana made a wise decision when they decided to continue to invest in sugar. Just this week the pice of sugar hit an all time high in decades. The projections are that sugar will continue to be profitable for some time. This is in keeping with projections going back to the year 2000. The Guyana sugar industry must now look at reducing the cost in the fields to stay profitable. This means reducing manual labor in the fields and increasing mechanization.
Kudos GoG. You made he right decision. Now make the industry more efficient. For the first time the industry is led by a minister who is trained in business. Minister Persaud has an Executive MBA.
Truth, higher prices on the world market does not translate to better wages for the sugar worker. By the time everyone takes their cut the sugar worker is again left in the cold. I cannot imagine the president blaming the cane cutter. These folks are a different breed of humans,if there is anybody who earns every penny they make it is the cane cutter.
Try doubling their salary and see what it does for attendance and performance.
Joe.
Truth, you mentioned that the new Minister has an MBA. THe majority of people in Guyana, since its independence who were in positions of authority were “HIGHLY” educated, yet they were unable to transfer that education into the development of the country. To improve the situation in Guyana there needs to be a commitment to adapt new solutions to existing problems, and come up with innovative ideas forfuture projects. Thats what missing not education. We Guyanese are a highly educated group.
Truth you telling LIES. We are presently importing sugar for local consumption.
many could not function independently, they were instructed how to function, that is why they all run in the 80’s. when they see it was all collapsing
Truth,
The sugar industry is in dire straits. The situation is recoverable and there is a future for sugar in Guyana. But that future lies not in brown-nosing the “powers that be”, but taking a sober look at the threats to the industry and in order to get to workable solutions.
You say “Just this week, sugar hit an all time high in DECADES.”
To be precise sugar has hit the highest price in 28 years at approximately 21.98c/lb (bloomberg). You no doubt are aware that this high is less than the price obtained from the EU in the recent past prior to the price cuts (23c/lb). With Guysuco deriving close to 80% of its sales into the EU at the preferential price (which was more than the current high) it still failed to be consistently profitable!
My first question would be how long is this high going to last? Answer no one knows.
Next question would be how long will the subsequent trough last (another 28 years)? Answer – no one knows
There exists then a situation of considerable uncertainty under which I can’t see Guysuco being able to take advantage of the current high prices because at its current level of production, the only option is to abandon its committments under the EU, SPS, US and CARICOM arrangements. Are they going to risk that in light of the risk that this 21.98 world market price corrects back to its 5c low!
You say: “projections are that sugar will continue to be PROFITABLE for some time”. Profitable for whom is what I ask.
I can see it being profitable for producers such as Brazil, Australia, Mauritious, Swaziland etc. The first two of these have the capacity to produce sugar at a cost approaching 5c/lb. Producers whose costs are in the area of the 21.98 price will be marginal and their future uncertain.
On Whose “projections” do you base your optimism? (by the way this is a type of fallacious argument known as appeal to anonymous authority). As I said before, no one knows how long the current high will last (in fact it can even go higher, but no one knows).
Let me share with you the view expressed by the Executive Director of the International Sugar Organisation the 84 member states of which account for 82% of world sugar production and 66% of world consumption.
”
The world sugar market will probably return to balance in the year ending September 2011 because of a rebound in production in India and other importing countries,
”
I’ve only scratched the surface. Sugar is a complexx subject. As I said it has a future. I don’t think that this future is assured by asserting that “The government is wise” or that the Minister has an MBA.
You correctly say that the company has to reduce the price. Let me leave you with a reminder of the kinds of thing that contribute to the price woes of Guysuco and thus the threats to the industry.
In December 2005/January 2006, faced with cash difficulties, the management of Guysuco made a deliberate decision to delay payment of Annual Production Incentive and to pay it out of subsequent cash from sales during the first crop. Mr. Jagdeo summoned the then Chief Executive of Guysuco Mr. Jackson to a meeting at the Office of the President. On his arrival at OP Mr. Jackson was ambushed and subjected to a tongue-lashing by Mr. Jagdeo in full view of the GINA cameras which were conveniently there to record this event some seven months prior to the 2006 election. Mr. Jagdeo instructed Mr. Jackson to find the money and pay the incentive forthwith. A shell-shocked Mr. Jackson left the office of the president, returned to Guysuco and the incentive was paid.
The alert reader will ask what was the cost implication? Did the incentive not have to be paid anyway? I will pose the answer in the form of a question for the benefit of the moderator. Did Guysuco have to borrow the funds, thus pay interest on a substantial amount (around 1Bn)?
Are these the actions of “wise” people?
Hello Truth, You guys are afraid to use ur real names. India consumes a lot of sugar and in periods of low returns they import a lot. This does not mean Guyana will profit from this. Guyana is in a real bog trying to lower the cost of production and if this is not achieved, we know what will happen. MBA is a piece of paper that has little value. None of the ministers know about business.
… Joe ,, how u doin ??? i stopped by here to say exactly what u have said ,, so ,, further i say not !
thanks Joe ! stay safe an healthy breds ,, all ahwe is 1 GUYANESE……
Joe
Try doubling their salary (~60% of operational costs) and see what it does for the profitabilty of the Industry.
A slight correction
That should be guysuco must reduce the COST not PRICE…
…. am Truth ,,, yuh tink yuh cud aks de ministah wid de execetive MBA fuh kantrol de wedah ! an mek de rain fall only fuh mek de ratoon tun cane ,,, an stap wen de cane muss cut ???????????????????????????????????????????????????????
SN I want to know if REDDY is your sponsorer, that you can publish the RUBBISH that he posts while my comments are being CHOPPED or not being posted or is the moderator an accomplis of the wrong doings in Guyana?
Mr. Chand if you’re wondering what would replace the industry should it crumble….well you don’t have to go looking too far for your answer…your next door neighbor Brazil has invested heavily in Ethanol plants….time you do the same and reduce your country’s dependence on foreign oil.
SWAT,them PPP fellas know every thing.That idea would be very hard to sell to the sugar workers / supporters, its all about the votes my friend . Over 40 billion lost , you know how many votes dah money bought for the 2011 ELECTIONS.Look at it this way them workers still get pay profit or no profit.
How come no one on here remembers the 1.6 Million Euros that was lost because Robert persaudies and Jagdeo could not write the business plan? The deadline was extended 3 times and still it apparently was not inline with the macro economic goals and Jagdeo’s right lobe.
they don’t have to they already have it,
Jagdeo at it again,does this man ever take the blame for any thing.He just sit back and watch things happen you told the Guyanese people things would change after the investment in the Skeldon factory.Now you have a different story,them PPP supporters that cut de cane nah stupid you know.
Seems many of you don’t know the truth. The truth is not that the workers are not showing up, but the fact that the government of Guyana is selling out the cane fields to large business that are in the ethanol business. They are using the sugar cane for ethanol and not food consumption. You may want to keep your eyes on the Brazil. Wow there is a bridge from Guyana to Brazil. Ring a bell.