Increased salaries, improved working conditions and progress, top the list of workers’ expectations as the Chinese company Bosai Minerals Group Co Ltd (BOSAI), gets ready to take the helm of Omai Bauxite Mining Incorporated (OBMI) next week.
On February 12, the government and BOSAI signed an agreement to allow BOSAI to buy 70% of OBMI; government waived its Right of First Refusal as a 30% shareholder.
Cambior, which formerly owned OBMI was bought by IAMGOLD in November last year. On December 19, IAMGOLD reached an agreement with BOSAI to sell OBMI for US$46 million.
Yesterday, Director of International Development at BOSAI Bill Holroyd told Stabroek News that by Friday the transaction sealing the 70% sale is expected to be completed. He did not say if there would be a name change, but affirmed that the local management team will not be changed and BOSAI will continue with the same local workforce.
Stabroek News visited the mining town of Linden on Thursday and interviewed several OBMI workers on their expectations. An electrician, who asked not to be named, told this newspaper that apart from a meeting in February by OBMI on the company’s takeover by the Chinese firm and to outline the smooth transition to BOSAI, hence no severance pay, no other meetings were held.
Nevertheless, this worker still wanted official confirmation that workers “would not be getting paid off.”
This electrician would like to see salaries improved, since “right now our salary scale is not [satisfactory].” He said working conditions and benefits need to be improved.
Stabroek News was told that the company has had, “a few industrial accidents.”
The OBMI employee said his continued employment at the company under BOSAI depends on the working conditions and salaries at the company.
Keith Davidson, from plant operations, who has been a permanent employee at OBMI for two years said that under BOSAI, the bauxite company must not be “worst off” but better. Davidson said that he would like to continue working at the company and if the salaries improve, he would. He too understands that the years of service will be transferred to BOSAI and there would be no severance. Before joining OBMI, Davidson worked as a farmer and in the lumber sector.
A kiln operator, who preferred not to be named, said he would like to see progress being made at OBMI. “All that we need in the bauxite plant is progress,” he said, affirming that he will be staying on with the new company.
Welder/fabricator Gerald Gonzales also advocated for a salary increase and for working conditions to be improved. He would like to see better quality boots and improved drainage in his work area. This worker complained that there is a lot of water in the area where he works and it is a safety risk.
Another worker who preferred not to be named as well was very disgruntled about the decision to have a smooth transition of service and noted, “we ain’t like that at all.” He said he did not attend the meeting, which discussed the takeover by the Chinese company, but was told of the decision to transfer years of service. His concern is that there is much uncertainty surrounding this move, since OBMI in a general meeting, some years ago under the ownership of Cambior, had projected managing the bauxite operation for the next 60 years.
“All of a sudden them ent making profit or target,” said the worker.
Before its sale, OBMI had suspended work in July and August 2006 owing to stiff competition from cheaper Chinese bauxite, but there was a resumption of operations in September. This worker said he plans to work for a couple of months under BOSAI’s management and depending on the package offered by BOSAI will decide if he will stay.
Region Ten Vice Chairman Samuel Hooper was of the view that work is something people take seriously and he would be disappointed if one worker from the bauxite company has to complain to his office about poor working conditions. He said he is sure that workers, given the opportunity to work, would want to do so to the best of their ability, and working conditions should be “up to standard.”
Company should
support the community
Another concern is if the company would continue to contribute toward community development and social programmes.
Some members of the business community told Stabroek News that they would like to see BOSAI continue supporting community stores.
One business woman told this newspaper that she is a supplier of OBMI and should she lose this source of income the loss would be significant. She declined to state the percentage of sales that will be lost. Decreased sales she said would mean less revenue for the government in the light of the Value-Added Tax. She also believes that the company should continue to support community development.
A snackette operator at the Mackenzie Municipal Market said she would reserve comment until the new company is officially installed. She then pointed toward the road to show this newspaper that there is very little traffic and not much signs of a vibrant business environment.
A former bauxite worker for ten years under the government-operated Guymine, the stallholder was very cautions as to the benefits that will come under BOSAI. “I don’t know how it will affect us.”
A dry goods store owner noted that the Chinese company may be able to better market the ‘RASC’ (refractory A special calcine) – which the Guyana bauxite industry is known for. BOSAI with the 70% stake in OBMI will become the largest supplier of refractory bauxite in the world both as a producer (Guyana) and trader (China).
Mackenzie he affirmed was formerly a company town where the company basically took care of the social and recreational facilities and managers of the bauxite company over the years have continued this to a lesser extent.
He would like to see the company procuring more of its supplies in Linden instead of in Georgetown, to ensure that the community receives more ‘spin-off benefits’ from the bauxite industry.
He complained about the scrap metal trade and argued that more of the metal should be sold to residents in Linden instead of elsewhere. The businessman said that residents benefit from a small portion of the scrap metal trade.
Re-employment
and Severance
Peter Benny, personal and industrial relations superintendent, during an interview on Friday explained that, “employment benefits and conditions [terms of employment] will be no different’, under BOSAI but noted that improvements are expected. To this end, he said, there is no need for severance in the light of the smooth transition.
In the February meeting, Benny said, the workers were told about the steps involved in the takeover process. He said lawyers and auditors from BOSAI arrived in Guyana over the past weeks and while the auditors remain, the lawyers have left.
The union representing the workers, the National Association of Agriculture Commercial & Industrial Employees (NAACIE) has also been briefed, this newspaper was told.
Benny said the union and OBMI have a very good working relationship and the NAACIE was consulted throughout the bidding process and at the time of the shut down last year.
Nothing will change with regard to the union Benny said. Last year NAACIE submitted a proposal to OBMI and Benny noted that in a couple of months the proposal is likely to be up for discussion again with the intention of restarting negotiations toward a new Collective Labour Agreement.
Apart from the union staying on, the local employees and procurement from the community will also continue. “As it is we will have to continue using local supplies
