Strike looms at RUSAL’s Aroaima operations

-if wage increase not granted
Workers at the Bauxite Com-pany of Guyana Incorporated (BCGI) operations at Aroaima have threatened to go on strike if the company fails to agree to a 10% wage increase, which the company says it cannot afford.

The decision was taken at a recent meeting with unionized workers of BCGI and members of the Guyana Bauxite and General Workers Union (GBGWU). In the ultimatum dated 6th November 2009 it was stated that if the bauxite company does not agree to a 10% increase across the board retroactive to the 1st January 2009, all unionized workers would proceed on strike from 6:00am this Wednesday. Efforts to contact company officials proved futile yesterday.

In a conference call with Stabroek News, several workers in the interior community expressed their frustration at the no-wage-increase situation. They said that they were told by senior management of BCGI that the global crisis has adversely affected the company and this is the main reason for their inability to increase wages and salaries.

However, the workers pointed that between last December and this Novem-ber, despite claims of being strapped for funds, the company has been hiring and promoting workers, purchasing new equipment and expanding.  They charged that during this period the company hired five new expatriates for whom new positions were created and promoted six locals also to newly created positions while five other locals were promoted to fill the vacated positions.

“For the first time in the history of this company we have had a foreign personnel manager. They created a position for a security director which is also taken up by an expatriate. In addition they created positions of planning and electrical superintendents. This company never had those two positions before and they created them for foreigners”, said one employee.

The employees said in addition, the company purchased two new vehicles last December and another last February. A brand new drill arrived at the mine site on Saturday, they said. According to them, the existing drill is in excellent working order and meets the existing needs of the company. They added that as part of the current expansion drive being undertaken by the company there is talk of purchasing three new 2008 model Ford Escalade vehicles and one new Boom Truck all of which are expected in the country by the end of this month.

Additionally the company purchased one grader and dragline in the 1st half of December 2008 while in October they hired former Chief Labour Officer Mohammad Akeel as consultant in the Human Resources Department, the workers said.

“They are telling us that they don’t have monies to pay increases but yet they are buying new machinery and hiring and promoting people. Are these the display of a ailing company”, queried one employee.

It was pointed out that according to the collective labour agreement signed with BCGI, overtime, meals, shift premium and wages must be reviewed every year using the inflation rate from the previous year. It also says that on 31st of December of every year the old wage expires.  “The wages that we are collecting now are the same wages from June of 2008.” contended another employee.

But in a letter dated 3rd November 2009, BCGI – a subsidiary of Russian bauxite giant United Company (UC) RUSAL, stated that in 2009, its management had applied massive efforts to avoid a shutdown of operations and keep adequate positions. It said that the global financial crisis and aluminum markets’ rapid price structure changes caused the company to devise steps in order to save the enterprise. The letters were posted on notice boards around the compound.

“During the period of perturbation in the economy there were applied a certain economical measures along with measures of unpopular nature. The global (crisis) arising in front of BCGI is to maintain staff, maintain production for account of cost saving and production efficiency enhancement with simultaneous preservation of social obligation of company” state the letter to employees.

The letter further stated that the financial state of the company and losses suffered did not allow for an increase in wages in 2009 but nevertheless BCGI employees’ wages were not decreased and due to fulfilment of plans, wages and bonus payments were held at a high level in comparison to other enterprises in Guyana.

It further stated that “waves of interception and confrontation” from particular employees and their representatives led to occurrences that took place in spring of this year (referring to a strike in May). It said that as a result customers for Guyana’s bauxite purchased lots from other producers. “We have almost lost our customers, and production for the fourth quarter of 2009 was significantly decreased which could in turn result in reduction of working shifts or staff reduction”, said the letter. It added that the production cost reduction made the company’s management able to convince the management of RUSAL not to apply reduction production plans for the fourth quarter of 2009 and 2010.

Meantime, workers said they are particularly offended by the last paragraph of the letter which states “Do not follow provocative influence of particular groups who are aimed to destabilize situation, induce distemper in all hands and gain personal benefits. Any unsanctioned shutdown may lead to non recoverable consequences.”

The bauxite company, in its letter to employees, appealed for their support and understanding stating that they will apply their best efforts to keep the enterprise stable “to keep social warranties to employees.”