Unions disappointed at GuySuCo’s dire projections for sugar industry

Days after meeting GuySuCo on the future of the sugar industry, the three workers’ unions yesterday said they were disappointed at the engagement in light of the “excessively dark and pessimistic” picture that was painted by the corporation’s management.

While heartened at the revelation that sugar production was projected to reach 320,000 tonnes in the period leading up to 2025, the unions said that the meeting left them concerned over the industry’s future direction.

In a joint statement issued yesterday, the Guyana Agricultural and General Workers Union (GAWU), the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) and the Guyana Labour Union (GLU) said the September 29 meeting left them “very disappointed and concerned” over the sugar industry’s future direction.

GuySuCo had told the three sugar unions that losses of $14.1 billion and $13.7 billion were projected for this year and 2017, respectively, while signalling that reorganisation of the industry was inevitable and absolutely necessary.

In their statement, the unions yesterday said the GuySuCo team, headed by members of the Interim Management Commit-tee, painted a dire picture of the current status and future of the industry, even though it claims that it wants to safeguard the livelihoods of the thousands who depend on the industry’s operations.

The statement said that both the Chief Executive Officer (CEO) Errol Hanoman and the Finance Director Paul Bhim, advised that GuySuCo, based on projections until year 2025, will remain reliant on government support for its operations.

It said too that in recent times, the industry has benefited from financial assistance for revitalisation “but yet the amounts sought by GuySuCo continue to increase year after year. The disaggregation of this financial support in the past and future, we feel, may be informative.”

The unions did, however, note that they were informed that production would reach 320,000 tonnes during the 2017 to 2025 period and they pointed out that the projection represents possibly the highest productivity level ever recorded given the fact that industry’s cultivable area will be reduced.

“We recall the last time the industry recorded similar production levels were during the 2002-2004 period when the Diamond Estate cultivation was operable. To attain the projected target in times when even the Wales Estate cultivation is expected to be abandoned will indeed be praiseworthy. It indeed tells us that there is great scope for the industry to be turned around and for production to rebound,”  they added.

Nevertheless, the unions were disheartened to learn at the meeting that GuySuCo would remain a raw sugar producer during the period.

They noted that they have long held the view that the industry needs to broaden its product base and it must be gradually transformed from a sugar to sugar cane industry in which the entire plant is used to produce various products.

“… Our unions pointed out to the GuySuCo officials that the industry has much scope for diversification and drew to their attention the opportunities in the areas of bagasse co-generation, sugar refining and distilling. These initiatives also were recommended by the very costly Commission of Inquiry (CoI) into the sugar industry. It is widely recognized that these areas offer viable opportunities for the industry to overcome its present challenges and be placed on a sustainable path,” they added.

The unions said that GuySuCo did not address their suggestions but made mention of the project to plant rice at the Wales Estate as well as possible ventures into aquaculture, citrus fruits and dairy cattle. “These ventures we gather will be pursued in the near-term but, we understand, if implemented, may not or improve worthily the corporation’s financial standing and, therefore, can be seen as inconsequential,” the statement said.

It pointed to the corporation’s attention to the “Economic and Finance report of the Sugar CoI which explicitly recommended that the other crops be first pursued outside of GuySuCo lands,” and noted that that aspect of the commission’s report was prepared by current GuySuCo Chairman, Professor Clive Thomas.

The unions said they also took the opportunity at the meeting to inquire about a wage increase for workers this year and GuySuCo said the meeting was not to address that issue.

“It seems, at this time, that sugar workers may again be denied a pay rise. This most discriminatory treatment, we warn, is not in the interest of the industry especially at a time when the commitment and dedication of all workers are required,” the unions said.

The unions also said that “based on the corporation’s projections and demeanour at the meeting, the future for workers does not appear to be promising. This can very well further demoralize and demotivate the workforce, including the senior staffers, further complicating the industry’s challenges.”

They said too that the “industry requires a knowledgeable management, a motivated workforce and financial support for a limited period. These are important elements in the industry’s on-going drive to overcome its difficulties, achieve its projected production level and to play a more meaningful role in our nation.”