Sugar workers shut down industry

Oct 19, 2010 News

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Guyana’s sugar industry, already in turmoil from low production, poor attendance and a less than desired performance from the new Skeldon factory, was shut down across the country yesterday as workers struck for a 15 per cent pay hike.
The situation is now heading for a clear stalemate as the Guyana Sugar Corporation (GuySuCo) is saying that it just cannot meet any demands unless production increases.
On the other hand, the Guyana Agriculture and General Workers Union (GAWU) is arguing that the explanations offered by the Corporation do not make sense.
Some workers are expected to return to duties as early as today, the Union said in a statement yesterday. All eight factories remained closed yesterday, the Union said.
It was only a few days ago that the Corporation met with GAWU and NAACIE’s representatives where a dismal state of affairs of the sugar industry was painted. Workers’ attendance stood at a estimated 57 per cent as at recent weeks and unless the situation drastically improves, even a revised target of 264,000 tonnes would be under threat.

Countrywide
There was picketing at all the estates, including Wales, West Demerara, and at LBI, East Coast Demerara.
GuySuCo, expressing its disappointment, yesterday, said that the one-day strike would seriously affect overall productions. It also slammed the decision by GAWU workers to engage in an industry-wide strike yesterday.
“The Union has indicated that the strike action is aimed at applying pressure on the Corporation into making an across the board wages and salaries increase for 2010. GuySuCo is however contending that any offer for wages and salaries increase for this year must be contingent on the industry at least achieving the revised target of 264,000 tonnes of sugar.”
The Corporation noted that the week ending Saturday was the only one that it achieved 9,800 tonnes of sugar and with 10 weeks remaining for the second crop, the industry will have to produce in excess of 10,000 tonnes weekly to achieve the revised 2010 target. Even this hinges on good weather.

Attendance
“With this in mind, the Corporation has informed GAWU that unless it is encouraged by increased workers’ turnout and productivity, it would not be in a position to make any reasonable offer for wages and salaries increases. Currently the workers turnout figures and production are far below their targets.”
According to GuySuCo, the highest attendance for the current crop was 68 per cent at Blairmont while the lowest was 43 per cent at Skeldon- with an industry average of 57 per cent.
“Low workers turnout has a direct consequence on grinding. The highest average figure recorded for grinding at the factories per week is 130 hours at Rose Hall and Blairmont, with the lowest of 66 hours recorded at LBI. The average recorded across the industry is 103 hours.”
GuySuCo warned that if the industry has to achieve a minimum of 10,000 tonnes of sugar per week for the remainder of the crop, the factories will have to grind at least 135 hours per week.
“On average, factories across the industry have recorded weekly out of cane periods amounting to one and a quarter day.
“During this period, 33,000 tonnes of cane could have been processed producing approximately 2,800 tonnes of sugar. This would have a significant negative impact on the Corporation’s cash flows and would severely affect its ability to meet any wage increase.”
The Corporation stressed that if the situation continues, then an estimated 330,000 tonnes of canes would not be crushed, resulting in 29,000 tonnes of sugar not being made.
“The Corporation is willing to have the unions audit our financial statements to verify that the financial position as put forward by the Corporation support its stance that it cannot meet the unions’ demands.”
GuySuCo pointed out yesterday that last Tuesday, its Chairman, Dr. Nanda Gopaul, along with other senior officials, met with representatives of both GAWU and NAACIE to discuss the same issues mentioned and harvesters were encouraged to improve their attendance.

Opportunities lost
“Given the existing dry weather, the industry is losing very valuable opportunity time for harvesting. The strike will also have a very deleterious effect on tillage and replanting which will affect production next year.”
The Corporation also said that yesterday’s strike action will have a “knock on effect on production” today and will result in the industry losing the opportunity to produce approximately 1,600 tonnes of sugar which may or may not be made up for later in the crop.
“The Corporation has been through a very difficult period in the past four years with production way below its potential.”

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