GuySuCo warns of grim financial position
A crippling strike hit the sugar industry yesterday after the main union GAWU called out its members over stalled wage talks and GuySuCo is warning that its financial position is grim and in other jurisdictions estates would have already been closed and workers laid off.
Errol Hanoman
The Guyana Agricultural and General Workers Union (GAWU) called its members out on a strike following Tuesday’s decision by GuySuCo’s to pull out of negotiations over wages and salaries because some workers at LBI had gone on strike and it would not negotiate under duress.
Approximately 88 percent of the sugar workers yesterday took strike action.
GAWU President Komal Chand, during a press conference held yesterday at the union’s headquarters in Kingston, said that the strike action was prompted by GuySuCo’s sudden withdrawal from the second conciliatory meeting on Tuesday.
In a press release issued by the Sugar Corporation on Tuesday, it noted that “the decision to withdraw from the talks is in keeping with standard Industrial relations practice which dictates that discussions should not take place in an atmosphere of duress.”
The release said that “this position stems from the fact that a section of workers attached to the LBI Estate resorted to strike action to vent their disapproval of the Corporation’s wage offer for the year 2009 among other issues.”
The top management of GuySuCo yesterday held a press conference at the National Communications Network (NCN) where it explained its position. Usually press conferences would be held at Herdmanston House but this was recently put on the market by the corporation.
Chief Executive of GuySuCo Errol Hanoman , while reading from a prepared statement, said that the
strike “could not have come at a more inopportune time, as the current weather pattern is ideal for land rehabilitation and harvesting” and for the Industry’s turnaround plan which is in progress.”
The CE noted that “as of June 2009, over 35 percent of the industry’s cultivation was uneconomical” leading to extremely poor yields. He said that the rainfall distribution for the past 4.5 years has been erratic and well above average in both quantity and distribution.
Hanoman described the financial situation facing GuySuCo as “grim” and noted that during last year the Corporation suffered a loss of $4 billion and owed banks $3 billion. He said that 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.
He further stated that 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.
Chairman of the Board of Directors Dr Nanda Gopaul said that “GuySuCo has done everything possible within the shortest space of time to meet with the workers, to meet with the unions and to speed up the wage negotiations.”
He pointed out that GuySuCo had taken several steps to make the lives of workers easier and that this should be taken into consideration by workers. He appealed to workers and the unions “to let normalcy prevail. Let us go back to the bargaining table while we talk wages. “ He pointed out that if wages were to be increased by one percent that would cost the union $150 million.
Meanwhile, Dr Gopaul, who formerly headed the other sugar union NAACIE and had participated in many strikes in his time, stressed that the company could not afford to pay staff that were not doing anything, and said that even if work does not continue, the staff that want to work may have to be sent home. He said that the salaried workers would be treated differently but stated that their positions would also have to be examined if the strike continued.
GuySuCo noted at the press conference that in many parts of the world “given the grave financial situation currently being experienced by GuySuCo, estates would have been closed and workers made redundant”. Instead, GuySuCo said that it had come up with a bold plan for the industry and was confident that its fortunes could be turned around. It said the projected investment over the next four years to return the industry to viability was estimated at over $45 billion dollars and included expanding the Blairmont estate and constructing an ethanol plant and refinery.
Yesterday workers represented by the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) were initially not allowed into the compounds of the estates but were later permitted.
Gopaul opined that the actions of the workers were counterproductive to the sugar industry and suggested that they were being badly advised. He said some were calling to be “paid off” but he said that this could not be done. He explained that only if the worker’s job becomes redundant and if they are proven to be medically unfit before retirement time could they be paid off. He said that if they choose to leave they do so at their own risk.
Meanwhile, General Secretary of GAWU Seepaul Narine said that contrary to what was being peddled “the strike by the majority of cane cutters at the LBI Estate on Tuesday “had no relation to negotiations” between GAWU and GuySuCo. He contended that since the Corporation realizes that its initial production target of 290,000 “is far from realization” it is attempting through its abrupt withdrawal from the negotiations to blame the workers’ strike action/s for the poor performance of the industry again.
Narine said that according to the latest estimate, the sugar company “is forecasting a production of just about 242,000 tonnes”. The General Secretary noted that as of Monday, the industry’s production stood at 189, 411 tonnes , 52, 589 tonnes short of the new target. “The remaining quantity of canes could be harvested in just seven weeks, at a production of 8,000 tonners of sugar per week”, Narine noted. He suggested that “given the long predictable dry weather during this year, the Corporation recognizes that there is a lot of time to have all the canes harvested and, therefore, to exhaust the workers in strikes is seemingly its choice”.
Narine described this as a “nefarious ploy “by GuySuCo and called upon the company to “avail itself to allow the negotiations to resume without further delay under the Chairmanship of the Chief Labour Officer.”
Chand, said that contrary to reports, the protest at LBI was not over the three percent increase offer put to the union. He said that while the union had asked for a 15 percent increase it would have been immature to protest when negotiations were still going on. He said that employees at the LBI estate had their own grievances. He noted that they have no target for this week to achieve the weekly production incentive (WPI). They were also on strike in solidarity with those cane cutters from Diamond over a price dispute they were having. He explained that there have been issues which require work stoppages. He stated that an agreement signed in 1976 with GuySuCo allows for the withdrawal of labour when there is a price dispute. He said that he was prepared to struggle for the rights of the workers, even if they ended up losing the struggle.
Meanwhile in criticizing the actions of GuySuCo, he said that the sugar company had also opted out of a meeting with the union that was supposed to be held yesterday under the supervision of the Labour Ministry.
General Secretary of NAACIE Kenneth Joseph has condemned the action taken by GuySuCo in locking out some of its union members from the estates when it was the GAWU workers that were striking.
Joseph, in a release, said that while the Company has asked NAACIE represented workers of the Estates to stay at home without any discussion or information to the NAACIE Secretariat, “all of the non-unionised workers which include security, watchmen and senior staff attached to the affected Estates are at work.”
“The affected NAACIE category of workers were not informed of what date they are expected to return to work”, Joseph said. According to him, the union is very concerned with the direction taken by GuySuCo, “especially in the light of the Union’s doubt in the company’s ability to reach targeted tonnage of sugar for 2009.”
The union is worried that their membership will be blamed along with other unionized workers for this unfortunate out come, he said.
The General Secretary stated that should management of the corporation blatantly incite members of NAACIE to withdraw their labour at specific estates, the union would not disappoint them, but will assure that all of its members support each other in any industrial action.
Joseph said that the union will be discussing this matter with the Federation of Independent Trade Union of Guyana (FITUG) before the end of this week.
GAWU and sugar workers doing what they know best when they don’t get their way. From burning young sugar canes to strikes the economy will continue to go under. Someone needs to analyse the under-development of the economy from the sugar strikes and burning of young sugar canes.
How about getting the “Guyana Defense Force” (GDF) to break de strike like was done in dem Burnham PNC days when all ah dis did happening – eh!
Also, it is high time for the sugar industry in Guyana to be diversified. And, does the area of “Information Technologies” (IT) rings a bell? Just take a look and India!
This should have read: “Just take a look (at what the rest of the world is doing in this area) and “India” readily comes to mind!
Excellent suggestion Raj. Jagdeo should get someone with the academic and professional credibility of Professor Clive Thomas to take this up. It will cost a lot of money and he can get IDB (his wallet) to pay for such a study. But no, he wouldn’t because it will provide the evidence of how much billions the PPP has saboutaged the country under the PNC and further, the amount of losses caused by strikes, damage to key sugar infrastructure, thiefing and burning of cane fields will certainly come up to more than the national debt the PPP so much like to accuse the PNC of running up. In addition, if Jagdeo goes down this route, there will also be a call for a study to find out how much the the PPP government ministers and senior officials and their cronies have stolen since October 1992.
Also, as the “Global Village” in which we all now live… is getting smaller and smaller one particular group appears to be running out of “tactics”; and, time alone will reveal this particular group to the world.
As the saying goes “History Has Strange Ways Of Repeating Itself”; so, has the present young generation in Guyana ever heard of an 80-Day National Strike!!!
This Stabroek News (SN) article also said in part:
Re: “Hanoman described the financial situation facing GuySuCo as “grim” and noted that during last year the Corporation suffered a loss of $4 billion and owed banks $3 billion. He said that 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.
He further stated that 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….”
Here is a simple solution (and, with Guyana’s low wage structure and English speaking capabilities…) do like what other under-developed countries around the world are doing.
Here, take a look:
Re: “Bringing tech jobs to Third World refugees”
http://news.cnet.com/8301-13772_3-10374607-52.html?tag=newsEditorsPicksArea.0
Another thing that GuySuCo can do is to become more involved in the production of electricity for the national grid in Guyana by collecting all the garbage they can in Guyana then convert this into electricity. And, Walla!
Also, who are the “banks” to which these sums of money are currently owed by GuySuCo???
Think GuySuCo – Think!
A house divided against itself cannot stand! With GAWU being a PPP union, and the government supposedly being a PPP government, it gives cause for pause when the union is taking indusrial action of this magnitude and media attention by striking against the government run by its own party!
I asked before: is the PPP, as a party, sending a message to the leader of its government? Is this the first major sign of a cracking in the relationship between the PPP and Jagdeo? And isn’t Jagdeo including leaders of the PPP in his LCDS push? I have noticed a marked absence of PPP leaders or the PPP itself in the LCDS nationwide efforts. There is no fan-out exercise by the party to promote LCDS; only Jagdeo and some of his close confidants. Is he going this alone to separate himself from the PPP?
It will appear that the Government imposed “VAT” has been effectively taking its toll where it was least expected; also, as a result of international exposure of the vulnerable Guyana sugar industry the PPP base has gotten very nervous; but, this call for attention may be coming too late as General Elections in Guyana in 2011 approach.
This is tactical my friend. The strategy is to send a signal to the PPP supporters that Jagdeo is a run away train and his policies does not reflect that of the party. His time is coming to an end and the old timers are closing ranks against a Jagdeo hand pick as a successor. The PPP will continue to milk sugar on the backs of the gullible supporters to its demise…poetic justice, I would to say. Brother Lewis hold tight, the faith of the selfish and ungrateful sugar workers will be worse than the bauxite workers.
New Garden St. and Freedom House (street) has taken a divergent path right after 2006!! The PPP has absolutely no say in Governance. Let GAWU continue belching,it will only hurt the contributors to it’s coffers. BTW, let’s wait until 2011, then we will see who will be running Freedom House!! Boy, when yuh big yuh really large!!!
DURESS!!!!Even carefully chosen words can BACK-FIRE.Mr.Hanoman,have you forgotten that :-TO EVERY ACTION THERE IS A REACTION? GuySuCo has created the atmosphere of “DURESS”by forgetting that:- SLAVERY DAYS ARE LONG GONE.Since when fighting for a decent salary is ILLEGAL?
Errol Hanoman must realize that if he and his EXECUTIVES continue on this TRACK, not only the situation of GuySuCo would be “GRIM”(CANE CUTTERS KNOW TO EAT “SHINE-RICE”)
COME ONE COME ALL support your UNION; STRIKE for your RIGHTS.STRIKE! hit these DICTATORS WHERE IT hurts MOST!You should not be the only ones to be pressured and DICTATED to without you (CANE-CUTTERS/LABOURERS) there is NO GuySuCo!!!! LET THAT BE KNOWN!!!
STRIKE FU YU RIGHT AN STRIKE BACK HARD!!!!! THIS ADVANTAGE MUST STOP!!FIGHT FOR “VALUE” “NORMS” “PRINCIPLES”and “RESPECT” You deserve it. Let dem EXECUTIVES gu cut cane!!!
Shows ongoing vibrancy of Guyana’s trade union and overall democracy and workers’ participation.
But watch for the no hopers today with their ultimately futile hollering : “Look ! Even the PPP’s own spporters turning agianst them ! They like they ain’t as stupid as we figured …”
Democracy? you need to educate yourself a little more about what exactly is democracy .
Is this possible? Are we dreaming? GAWU striking against a PPP Government? I do not believe this. The PPP are imploding. former Minister of Agriculture Sawh your spirit still hovers
It seem this is only true for the cane cutters. What about the PUBLIC SERVANTS? NO WHEN THEY STRIKE THEY ARE TRYING TO OVER THROW THE GOVERNMENT!
this is the same thing they did during the pnc time. the chickens have now come home to roost. the only question now is: will they resort to burning the cane fields like old times?
mr reddy cut the bs about democracy and participation. this strike will render a severe blow to the economy of Guyana whose pinacle is sugar. With the rice and timber industries reeling under sub-optimal production, and bauxite and gold like handicapped siblings, the country can only slide deeper into povery as a result of a massive strike in the sugar industry.
Colin, Faria got two standards, for the GAWU its excercising democracy but for the canecutters or even Benchop or Lewis, they should be arrested for trying to overthrow the government.
Agree reddy,,,democracy at work here let it work itself out,,,Samaroo will still say this is dictatorship…
Just goes to show even the Gawu can see through the window of incompetence. Had this been the PNC in office, the outcry would have been heard far and wide. The PEE-PEE_PEE bed is all rumpled up.
Reddy come with something new.
You said it yourself without prompting. Their own supporters are fed up with them, much more anybody else.
I was up all night arguing with God about democracy.Reddy.
This is the PPP support base and they will get what they want ..unlike the bauxite industry which was allowed to crumble to nothing and Sam Hinds a supposed Lindener just stood there very quitely …..he did and said NOTHING. Of course he can say he is not the legal representative of Linden because the PPP did not win this seat.
Re: “This is the PPP support base and they will get what they want ..unlike the bauxite industry which was allowed to crumble to nothing and Sam Hinds a supposed Lindener just stood there very quitely ……”
So, what did “Robert Corbin” (a a born and bred Lindener) and de selected/appointed Opposition Leader do about it???
Yes LIND.CREEK they always do – ” get what they want”.
The failure of the current regime to continue the diversification of the economy that was started by Mr. Hoyte (with private investments in Barama, Omai, GT&T, etc.) is now taking a toll on our nation. You have to lack vision to not see this coming. We can no longer depend on sugar the way we used to. The PPP needs to come clean and level with the sugar workers. There is no room for political games – the future of the country is at stake here.
On the world market sugar is fetching a heavy price….lisen to Bloomberge Radio/TV and you will hear or see them talk about sugar verses sweeteners. Nobody wants to use sweeteners any more people prefer sugar or honey.
Dimond you hit them hard….kaieteur, and thomas I was attending school when the diversification was taking place you could of got honey and fish from Blairmont.
Can you all remember GuyExpo back in the day. GuySuco had a long list of products you use to early just to get a jar of something.
The PPP government is now reaping the seeds it sowed years ago, when the PNC was in office. When your own louse bite you, it’s very painful. Waht goes around, comes around.
It’s true that Guysuco needs cane workers to survive. But same time you must understand that Guysuco cannot survive in international market with high price. At this moment Guysuco is enjoying EU’s support. How long you think EU will support Guyana?
It’s in interest of cane workers and sugar industry to resolve labor dispute urgently. Otherwise Guysuco management should think to purchase more cane harvester and cane loader to reduce the labour.
Swami
The PPP has clearly failed in its management of everything in Guyana this is not an anomaly or something new or different.
The PPP and the communists have failed in their attempts to run this country it is time for them to go.
Well, well what have we here, the workers needs more money, so what they do what they knows best in a democracy and that is to strike, while the management live large they expect the workers to be satified with the crumbs they are getting.