GuySuCo says can’t afford 14% wage hike

-urges workers to resume
The Guyana Sugar Corporation (GuySuCo) top brass yesterday summoned a press conference to highlight its concern at the strike action by sugar workers on Wednesday in the midst of wage negotiations.

GuySuCo Human Resource Director Jai Petam told the press conference at Herdmanston House that it is not a situation where the corporation is insensitive to workers’ concerns but that it is not in a position to meet the 14% demand by the main sugar union, GAWU.  It was posited that such an increase would result in “bankruptcy” for GuySuCo. The corporation said it expected a full resumption by workers today before a previously scheduled meeting for tomorrow goes ahead.

Company Chairman, Ronald Alli said that GuySuCo was implementing a mechanization strategy which is in the process of reducing the work load of field workers. Alli added that the strenuous cut and load system was being done away with.

Wednesday’s strike brought a standstill to grinding operations at the LBI, Enmore, Rose Hall and Wales estates. Approximately 90% of the field and factory workers at LBI, Enmore and Wales, and 85% of the field workers at Rose Hall went on strike over the current wage negotiations.
It was asserted during yesterday’s press briefing that GuySuCo is currently incurring severe losses due to the industrial action and it issued a plea for a speedy resumption of work.

The corporation is in a serious predicament over the impact of the EU imposed price cut and the high costs associated with fuel, freight and fertilizers. It is also contractually obligated to supply its main European customer 55,000 tonnes of sugar by the 5th September; failing to supply by this date the corporation would lose significantly.

In a statement on Wednesday, the corporation said it had met on Tuesday  with the Guyana Agricultural and General Workers Union (GAWU). The company said the meeting with GAWU was the 8th such session and it concluded with the position of 4 1/2% and 14¾% respectively in relation to wage increases. It said on the first four occasions the union and the company held discussions on financial, operational and marketing issues.

Guysuco said both parties had agreed to continue negotiations tomorrow prior to Wednesday’s strike, with the understanding that “if there is no sign of settlement at the next meeting then it would be procedurally prudent to refer the wage dispute to the next stage, which is conciliation.” GAWU, the release said, agreed to this proposal. The company said it was therefore “baffled and disappointed” to discover on Wednesday morning that four of their seven operating estates had completely shut down because of the ongoing negotiations. Further, it said those actions were “callous, reckless and unjustified” and that this type of industrial action violates the existing grievance procedure.

The company said the strike is taking place at a time when conditions are extremely conducive to harvesting and will result in 650 tonnes of sugar not being produced.  Guysuco’s main European customer is to be supplied with 55,000 tonnes of sugar by September 5 failing which it would lose US$70 per tonne of sugar. Of the stated amount, the release said, 16,400 tonnes have been shipped and a vessel is currently awaiting loading of another 7,200 tonnes at the Demerara Sugar Terminal and another vessel is expected tomorrow. It noted that if these vessels did not leave on time there would be demurrage expenses to pay.