Sugar workers’ salary dispute… Guysuco, GAWU go to conciliation

Aug 19, 2008 News

Chief Labour Officer Mohamed Akeel yesterday met with representatives of the Guyana Sugar Corporation and the Guyana Agricultural and General Workers’ Union, as conciliation commences in the wages dispute between the two entities.

In presenting its case yesterday, the union made its representation on behalf of the workers on the ground of high cost of living, and refused the company’s 4½ percent increase.

Kaieteur News was told that the issue of retaining workers in the employment was raised. The corporation sympathised with the union on the high cost of living issue, but stated that this should not be at the expense of the company.

Guysuco, too, emphasised the loss in revenue from the European Union price cut as a major basis on the unavailability of funds for a huge increase.

In its presentation yesterday, the company noted that the high prices for fuel, freight charges and fertilizer costs are factors affecting the company.

Inclement weather experienced during the first two crops of the year, along with strikes, also jeopardized the company’s production.

At present, the sugar company is examining the possibility of closing the La Bonne Intention (LBI) estate sooner than expected.

On Thursday last, Chief Executive Officer (ag) Paul Bhim told the media that, should these ‘wildcat’ strikes continue, then management will be forced to re-look at whether it can continue to sustain eight operating factories.

During a press conference, Bhim said that the strikes are hampering the corporation’s plans to improve its production.

Soured wage negotiations between the company and the GAWU resulted in workers taking a standoff since last Wednesday.

At the conclusion of yesterday’s meeting, the sugar company increased its offer by a quarter of a percent, but the union stood firm on its call for a 14¼ percent increase. The meeting being held at the staff club at La Bonne Intention (LBI) will continue tomorrow.

GuySuCo is contractually obligated to supply its main European customer with 55,000 tonnes of sugar by September 5.

Failing to meet this obligation would see the corporation losing US$70 for every tonne of sugar not supplied by the date to that particular market.

Presently, the corporation has shipped 16,400 of the 55,000 tonnes. This year, GuySuCo stands to lose close to $1.2B in revenue, due to the price cut. (Tusika Martin)