Latest update March 25th, 2025 7:08 AM
Oct 09, 2009 Letters
Dear Editor,
The Guyana Agricultural and General Workers Union (GAWU) wishes to take the opportunity to address the clearly misleading contentions made by Lincoln Lewis, General Secretary of the Caribbean Congress of Labour (CCL) in his letter entitled, “The same principle that is embraced for Sugar must also be embraced for Bauxite” published in the September 12th, 2009 edition of Kaieteur News.
In the letter Lewis claimed that as a result of the struggle of bauxite workers, the PNC administration granted tax-free pay for work performed on Saturdays and Sundays to workers employed by the Bauxite and Sugar industries. On the contrary, tax free pay for work on Saturdays and Sundays had existed in the sugar industry for many years before GAWU was even recognised in 1976. Initially, it applied to cane cutters and later extended to all categories of workers in the sugar industry.
Lewis, in his first letter charged that the Government had injected resources into the Sugar Industry’s Pension Fund.
He has since backtracked stating now that GuySuCo had injected monies into the industry Pension Fund.
What is so wrong with that? Many employers, the world over, have often provided resources to their respective pension funds with a view to ensure the viability and soundness of their schemes.
Employers investing in workers are not only embraced by unions, but it is also agitated for.
While I do not wish to engage Lewis on the Government’s policies towards the bauxite industry, Lewis needs to take note of the following:-
1. In the book “Guyana: Experience with Macroeconomic Stabilization, Structural Adjustment and Poverty Reduction” by Philippe Egoume-Bossogo, Ebrima Faal, Raj Nallari, and Ethan Weisman on page 29 stated, “only the sugar company (GuySuCo), the bauxite company (Linmine and Bermine), and a commercial bank (GNCB) remain in government hands. In total, the bauxite companies and the state owned bank received average annual transfers of about 2 percent of GDP from the treasury for 2000 and 2001.”
2. A report done by the Millennium Institute in November, 2002, found that the bauxite sector “started to decline after 1978, when the government nationalized the industry.
In 1992, the operations were declared technically bankrupt but continued operating with a government subsidy” with subsidies to Linmine alone amounting “to about 0.7 per cent of GDP in 1995” and growing to “1.7 per cent of GDP in 2001.”
Whereas, unlike bauxite, the government’s contribution to the modernization of the sugar industry was made as loans to be repaid within the agreed timetable. Lewis’ agenda of disdain for the sugar industry can no longer be hidden.
Aslim Singh
Research Department
Mar 25, 2025
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