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Who is drinking something other than cane-juice?

Oct 26, 2009 Letters

Dear Editor,

Not withstanding the already oversized and cost over-run, new factory in Berbice, I find it preposterous that the Guyana Agricultural and General Workers Union (GAWU) will unscrupulously press hard for a significant wage increase from a dying sugar industry, where losses last year were over $4.0 billion and this year losses will be just as bad. (See, ‘Strike cripples Sugar’, SN 10-24-2009).

Put more bluntly are the comments of the CEO, Mr. Errol Hanoman. He states, “…as of June 2009, over 35 percent of the industry’s cultivation was uneconomical, leading to extremely poor yields. … the financial situation facing GuySuCo as ‘grim’… at the end of September 2009, the company owed the Banks just over $5 billion and the loss for this year is projected at $2.5 billion…as of December 31 last year, the company owed its creditors $2.6 billion and as of last month $1.8 billion dollars. GuySuCo is also now seeing the full impact of a 36% cut in the price that it receives in its preferential European market.”

In the midst of an impending disaster, to ask for a substantial increase in wages (and they will get it), while productivity is falling is symptomatic of a system that is out of control, due to a conflict of interest (see letter, ” Is there a Conflict of Interest in the State-owned sugar Industry?, SN 1-5-1999).

That Mr. Hanoman is concerned about minimizing cost, improving efficiency and profitability at world market prices, and maximizing foreign exchange earnings, he is certainly on a path different from the one chosen by GAWU. In fact, GAWU appears to be only concerned with maximizing the share of revenue paid to labour and themselves as union dues; and minimizing the share of revenue paid into the treasury, a reasonable expectation for taxpayers who have been overburdened by an exploding sugar debt, a sugar import surprise, and no return on their investment.

So where is the owner, the owner being the people of Guyana through the Guyana Government? They are being held hostage by GAWU due to political affiliations with the PPP Government – GAWU President Komal Chand ties President Jadgeo’s hand at every turn.

Where is the Ministry of Labour that is expected to arbitrate labour-management disputes under the neutrality principle?

The Ministry is in a coma, unable to arbitrate, unable to engage meaningfully. So what happens to Mr. Hanoman’s lofty ideas? They will be dropped and the union will be paid, as has happened in 1997 and 1998 when revenue and output were decreasing.

On the subject of production, what has been the response in the industry? Production in 2008 was 226,352 tonnes, certainly less than what it was in 2002 (273, 703 tonnes) and 255, 638 tonnes in 1998. This is a sure sign of things not getting any better.

And what is the expectation for 2009? The sugar company, “is forecasting a production of just about 242,000 tonnes” in 2009.

The reply to this statement by Union executive, Mr. Joseph of NAACIE, is categorical. He said, “…the Union’s doubt in the company’s ability to reach targeted tonnage of sugar for 2009.” Now, who is telling the truth and who is drinking something other than cane-juice?

We will know in less than ratoon time, for both cannot be right.

C. Kenrick Hunte

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