Gov’t shareholding in bauxite company may be reason for unsettled labour dispute

-Dr Kenrick Hunte

Government’s holding of minority shares in the Bauxite Company of Guyana Inc. (BCGI), may be the reason for the unresolved dispute between the company and the Guyana Bauxite & Guyana Workers Union (GB&GWU), Dr Kenrick Hunte believes.

Delivering the feature address on Saturday at the GB&GWU’s fifth Triennial Delegates Conference, Hunte pointed to complications which arise when a government is part owner in a business venture that is majority-owned by a private company.  He linked the complications to the fact that the government has to make decisions about workers’ rights, enforcing the country’s law and maximizing shareholders profits all at the same time.  “This case therefore presents an important example of a ‘conflict of interest’ and it is one reason why Governments do not wish to be caught in this trap.”

Addressing the gathering at Critchlow Labour College, Hunte described the unresolved matter between and among the BCGI and the GB&GWU as “a classic example of these difficulties”.   Hunte said that “as a shareholding partner in the company, the Government of Guyana is caught in a trap because it has to perform in the role of an umpire as in a cricket match”. He noted that this was the role of the Ministry of Labour.  “However, since the government is a shareholder in the business; and if they place a higher value on the relationship with the private owner above the workers’ interests, then the process breaks down and the Laws of Guyana will not be enforced. This could very well be the case now as the current dispute is unresolved for at least nine months and nothing has been agreed upon,” Hunte said.

Hunte, who is a former General Manager at GAIBANK, said that bauxite workers are disadvantaged and unprotected as he drew a comparison with the sugar industry. “Compared with the workers at GuySuCo, who from time to time may have similar problems, the record will show that the Ministry of Labour moves quickly and finds a solution that is acceptable to all parties.” He said too that such disputes within the sugar industry never run on for as long as the current impasse between the BCGI and GB&GWU has.

He said that the government must be held accountable for the enforcement of the laws.   Hunte also identified seeking redress through the courts as a means of holding people, entities and the Government of the day accountable.

The impasse between the GB&GWU and the BCGI dates back to last November when workers engaged in industrial action. Subsequently, several of the workers aborted the strike and resumed working with the company. About 50 workers–including some senior members of the union—were later dismissed by the BCGI. Union leaders have since argued that the workers who went back to work were forced to sign letters to say that they wanted the GB&GWU to be derecognised.