GuySuCo, GAWU reach $375M production incentive deal

GuySuCo and the main sugar union GAWU yesterday reached a compromise on the Annual Production Incentive (API) which will likely see a total payout of $375M , equivalent to five days’ pay.

The Guyana Agricul-tural and General Workers Union had originally been seeking 6.80 days’ pay and after mixed signals at a meeting on Tuesday with GuySuCo, workers downed tools across the industry on Wednesday.

Scheduled talks, however, continued yesterday after the workers returned to work.

Komal Chand, Head of GAWU, told Stabroek News that the corporation would be releasing $75 Million for every day’s pay, at a rate of one day pay for every 37,000 tonnes of sugar produced. This was also confirmed by GuySuCo’s Chief Exe-cutive Officer Paul Bhim.

           Paul Bhim
Paul Bhim
Komal Chand
Komal Chand

GuySuCo’s sugar production is likely to end at around 185,000, a dismal result. In years of high production, workers had been able to clinch API as high as 17 and 18 days’ pay.

Sugar workers had held a one-day strike after they were allegedly told that they would not receive their incentive. “Sugar workers have a right to express their views. It doesn’t matter if production for the year is low or the industry is losing income they have a right,” Chand had said.

GuySuCo, in a statement on Wednesday had said that the strike had only aggravated the corporation’s ability to meet its monetary obligations. “Despite low production, strikes and low turnouts, the Corporation in good faith continues to enhance wages. Just 4 weeks ago the Corporation and GAWU and NAACIE reached an agreement for an across the board increase of 4%, effective from January 1, 2013. The retroactive payments calculated to be $735M will be paid on December 20, 2013”, GuySuCo said.

The statement added that on Wednesday morning there were approximately 960 loaded punts with 5,300 tonnes canes waiting to be processed, which could yield 375 tonnes sugar. In addition, it said that there were 12, 500 tonnes of canes which were burnt in the fields waiting to be harvested and which could yield another 884 tonnes sugar.

GuySuCo had stated that at the meeting held on Tuesday, the board had asked GAWU to review its original request to help further conversations on the issue to which the General Secretary of the Union responded that the GAWU was “flexible” on its demand, and at the next meeting would communicate its “flexible position”. The strike fell in between these two meetings.

GAWU had originally submitted a claim for an annual production bonus of 6.80 days’ pay for a production of 201,000 tonnes sugar, or alternatively 29,500 tonnes per day pay.