The sugar union GAWU today said it opposes divestment of the Skeldon sugar estate.
In a statement, the union pointed to media reports that the board of the Guyana Sugar Corporation is considering the sale of the estate. GAWU, which has a representative on the board, says it has not been consulted on the matter neither is its representative on the board aware of such a move.
A release from GAWU follows:
Sugar workers and, no doubt, an alert public must have been taken aback and surprised to learn, from media reports, that the Guyana Sugar Corporation Inc (GuySuCo) and the Government are preparing the ground for the imminent sale of Skeldon Estate. The pattern we have been witnessing over the last year or so regarding the sugar industry is clearly continuing. The authorities seem bent on doing things and considering measures that are certainly not suitable for the well-being of the industry, the workers and the country. Alternative and worthy proposals and ideas expressed by the Sugar Commission of Inquiry (CoI), Trade Unions, and other credible voices are simply shunned.
From news reports, we understand that the Corporation’s Board is advancing the sale, among other, “options” in addressing the sugar industry’s future. The Guyana Agricultural and General Workers Union (GAWU) wishes to point out that its representative on the Board is not aware of such a proposal being raised in at recent meetings. Neither has he been requested to express his view on these “options”. Apparently, the Board’s name is being used to illustrate that consultation is taking place and a democratic procedure is followed. It also raises the question whether other Board members are aware of what is being proposed in their name. Most certainly, the workers of Skeldon and their Unions are left in the dark.
The statements that Skeldon estate is in a “deplorable” state are baseless and came out of nowhere. Moreover, we find them to be at odds with earlier statements. We recall the Chairman of the Board saying in the November 01, 2015 Kaieteur News that:- “I am pleased with the way the Skeldon factory seems to be improving. And I know that it can do more. But this is a good sign for the industry”.
The Government’s and GuySuCo’s consideration is most perplexing and disconcerting. The Corporation’s 2015 Annual Report, at page 12, said “Skeldon’s sugar production of 39,158 tonnes surpassed 2014’s actual and is now the highest production since the new factory was commissioned in 2009. The factory performance has improved considerably (15% improvement in the sugar recoveries).” Moreover, from a letter which appeared in the November 15, 2016, Guyana Times by Fredrick Yuvraj, it was interesting to note that the mentioned ‘issues’ at Skeldon are usual for all factories and they simply require adequate and timely maintenance. With this in mind and with the prospect of ‘sale’ being floated, it is tempting to ask whether proper maintenance is not done or is there a considered attempt to present the factory’s declining performance to justify its sale or, possibly, its sale at a highly reduced price for the intended buyer.
According to the November 13, 2016 Stabroek News, Wartsila conducted an evaluation of the factory which would have led to the comments now being made. It is bewildering as to why GuySuCo would engage Wartsila especially since its known area is power generation and we are unware of any track record of its credible knowledge with respect to sugar factories and thus its conclusion are open to be questioned . The public is now being told that as much as $12B is required to bring the estate “up to speed”. Clearly this is an astronomically overstated sum. It would be interesting to learn of the breakdown of this big sum.
The media reported, interestingly, that GuySuCo has already begun talks with prospective buyer/s. Is it a case that there are buyers or just a buyer? It is also puzzling that the Skeldon factory now described as a “ticking time bomb” and requiring an astounding sum to be put right, yet is attracting interested purchaser/s so eager to talk. Maybe there is more in the mortar than the pestle. Transparency is certainly lacking even in this case involving the newest and costliest sugar factory.
From our perspective, the ground is being fertilized to make a case for the sale of Skeldon at, quite possibly, a giveaway price and the workers and the public are not being adequately informed by the Chief Executive Officer, Errol Hanoman and/or the relevant government official(s). GAWU does not support the divestment of the Skeldon factory and its rich and arable land – a part of our patrimony. Indeed, such an approach, we believe, most entail knowledgeable and responsible evaluators, consultations with the workers and their Unions and, indeed, discussions involving the relevant agencies of the country.
It is apposite to remind ourselves that the Skeldon factory and agricultural expansion were conceptualized and designed to safeguard the entire sugar industry’s viability and sustainability. This concept holds good today. An important element to Skeldon’s success relates to the return of the Co-Generation plant and the adoption of an appropriate Power Purchase Agreement (PPA) as was recommended by the CoI and sent to be approved by the Government. But no action has been taken to return this important asset to GuySuCo for the past eighteen (18) months, yet another puzzling factor. Will the prized Cogeneration units be part of the “gift” to the intended owner?
We see the move place the Skeldon factory on the chopping block will have negative repercussions for the industry and the country as a whole. For the workers, the communities, the cane farmers and others who are directly and indirectly linked to Skeldon Estate, such decision will certainly place their employment and welfare grave risk. At this time, we emphasize our strong disagreement with the position mooted and strongly urge the Government and GuySuCo to desist from such a course and instead to heed the credible and sincere views of the many Guyanese who have grave difficulties to support the selling out of the Estate.
