Latest update December 19th, 2024 3:22 AM
RUSAL sues union leaders- cites $$M strike losses
Leslie Gonsalves, one of the union leaders being sued by United Company RUSAL.
The Bauxite Company of Guyana Incorporated (BCGI), the local subsidiary of Russian aluminum giant, United Company RUSAL, has instituted legal action against the leaders of the union representing workers and is seeking significant damages.
The centre of the legal action is a strike called by workers in late May this year. The workers went on strike on May 23 and an agreement between the union and the company led to a full resumption of work on May 28.
General Secretary (ag) of the Guyana Bauxite and General Workers Union (GBGWU), Leslie Gonsalves, told Kaieteur News that the agreement reached with the company dictated that the “status quo ante” will prevail and “there shall be no victimisation by either party.”
With the agreement, came the start of new wages negotiations and the company also agreed to fix the air-condition units of seven trucks (the issue that triggered the strike action) and also provide a vehicle for emergency transportation from Bissuruni, which lies approximately 16 miles from the hospital at Kwakwani.
However, United Company RUSAL has since filed a writ in the High Court naming Gonsalves (quoted above) and branch president of the union, Carlton Sinclair, as defendants, saying they “conspired” and “induced” the workers to strike. Rusal employs in excess of 500 workers at its mining site at Aroaima in the Berbice River.
The company is claiming that the union leaders encouraged employees to join with them in entering upon the industrial area and burning tyres, blocking roads and accessways, thereby obstructing and impeding mining operations. The company said this action caused work stoppages and shortfalls in the production of bauxite.
The company has put the value of bauxite production lost as a result of the strike action at US$290,000 (G$58 million). In noting loss and damages, the company also listed the salaries they had to pay the striking workers – $1.4 million.
The company is seeking a declaration that the defendants conspired to wrongfully and unlawfully prevent the workers from carrying out their job. The company also wants a declaration that the defendants are guilty of interference with the company’s business and are guilty of trespassing upon the company’s property from May 23-25.
The court is being asked to award damages in excess of $50, 000 each on five charges. These are conspiracy, inducement, trespass, interference with trade, and exemplary or aggravated damages for conspiracy, inducement and trespass and or/interference with trade.
This is in addition to the US$290,000 the company claims it lost as a result of the strike action and the $1.4 million it had to pay in salaries to the striking workers.
BCGI in late May this year announced key cost-cutting measures to keep operations afloat in the face of the global economic downturn and the need to increase competitiveness in the industry.
The company said it planned to optimise fuel consumption and electricity generation, reduce bauxite transportation costs and fully shift to direct supplies of diesel fuel and fuel oil.
This announcement came after the end of strike action at the company’s operations at Aroaima.
United Company RUSAL, the world’s largest aluminium and alumina producer, started operations in Guyana in 2004. The company said its cost-cutting programme was necessary, given the challenges facing the sector and hopes to save US$1.1 billion this year through cost-cutting measures at all of its operations worldwide.
The company accounts for approximately 12 to 15 percent of the global production of aluminium and alumina.
United Company RUSAL, said that the support of trade unions and their co-operation will allow the company “to live through these hard times with minimum losses, and become one the first businesses to recover from the world financial crisis keeping its production capacities and competitive advantages in place.”
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