150 workers laid off, another 50 jobs threatened

Mar 15, 2009 News

…as manufacturers start cutting jobs as financial crisis bites

Manufactures in Guyana have begun cutting jobs, given the drop in overseas demand for their products.

President of the Guyana Manufacturers and Services Association (GMSA), Ramesh Dookhoo, told Kaieteur News that the sectors particularly hit by the global economic slowdown are the garment manufacturing and value-added wood sectors. He said some 150 workers have already been laid off, and another 50 jobs are immediately threatened.

Dookhoo explained that the drying up of export orders from Europe and North America is the main reason for the layoffs in these sectors, since a drop in demands means less production.

He declined to name specific businesses which are feeling the squeeze, but he said these are affected because 90 percent of their products are produced for the export market.

There is little that exporters can do when traditional markets are lost, but the Association this week suggested that businesses should seek alternative markets, while acknowledging that this is in itself difficult and time consuming.

According to the GMSA, there can be little doubt that exporters would see considerable shortfalls in earnings and the domino effect of downsizing, layoffs and production contractions.

Dookhoo reiterated that the areas where jobs may have to be cut need the fullest attention of the government, the banking community and workers’ representatives.

This week the GMSA said that the global financial meltdown and its adverse effects on the local economy would require some tolerance on the part of financiers.

The Association is insisting that despite the overall strength of the financial sector there are some companies that are seriously affected by the crisis and would experience considerable difficulty in such areas as medical coverage for their employees and workers’ pension rights, unless strong government guarantees are forthcoming.

The GMSA has said that while Guyana has not been affected to the level of severity, as is the case in some other countries, “we nevertheless have to be sensitive to the realities on the ground and to take all necessary precautionary measures in the interest of national economic viability.”

The Association has called on its members to cut down on overhead expenses since the ultimate goal should be to get products and services on a continuous basis to the consumer, at the cheapest possible price and highest quality, while maintaining reasonable margins of profitability.

The GMSA also wants the local banking system to be more appreciative of the plight of these companies and to demonstrate greater tolerance and understanding in facilitating credit, since many companies may seek better refinancing arrangements to keep their businesses afloat.

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150 workers laid off, another 50 jobs threatened

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