Govt. imposes compulsory arbitration as GuySuCo wage talks deadlocked

Oct 30, 2009 News

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By Leonard Gildarie
Ongoing wages talks between Guyana’s sugar company and its largest union was declared deadlocked yesterday but government stepped in late last evening and imposed compulsory arbitration.
Several workers from the Rose Hall factory reportedly walked off their jobs forcing operations to a standstill there.
Government’s spokesman, Dr Roger Luncheon, yesterday also blasted the Guyana Agricultural and General Workers’ Union (GAWU) for its “partisan” approach of refusing to be a part of the board of the Guyana Sugar Corporation (GuySuCo).
In a statement late last night, Minister of Labour, Manzoor Nadir, said that he was forced to order the move “after conciliation proceedings between the Guyana Sugar Corporation and the Guyana Agricultural & General Workers Union was declared deadlocked on October 29, 2009 by the Chief Labour Officer.”
According to a statement from Minister Nadir last evening, in letters to the parties, he warned that “conscious of the threat by the union to go on full scale industrial action which can have serious consequences for the industry, the Hon. Minister wishes to advise that he is satisfied that the continuance of the difference is likely to be gravely injurious to the national interest and has decided to impose compulsory arbitration by virtue of the powers conferred upon him by Section 4 (1) (c) of the Labour Act, Cap. 98:01.”
Members of the Tribunal Panel will be named shortly, the statement said.
GAWU
A GAWU statement earlier said GuySuCo “in a dramatic move, at the end of the conciliatory proceedings today (October 29, 2009) between the Union and the Corporation under the Chairmanship of the Chief Labour Officer, withdrew its offer of three (3) per cent increase in wages/salary for this year.”
According to GAWU, the fifty (50)-odd members of the union team were astonished by GuySuCo’s decision and recalled on previous occasions there were no such acts of provocation by the corporation.
“Members of the Union’s team belonging to the eight (8) sugar estate locations immediately began to communicate through the use of their mobile phones this unusual and provocative decision of the Corporation. It was reported that the workers are incensed by the Corporation’s move and already the factory workers at Rose Hall Estate have walked out forcing the factory to cease operation.”
GAWU said that despite this development, it still sought to reach a settlement but GuySuCo did not budge.
“The Union sought to the end of the conciliatory proceedings, before the Chief Labour Officer deemed the talks deadlocked, to reach a settlement but the Corporation remained obstinate.”
According to the statement, the Corporation’s three (3) per cent position became unchangeable at this time since the number most likely is identifiable with the Government’s position.
Gov’t take
Yesterday, breakdown in talks once again will mean that GuySuCo already dismal production figures will be worsened by yet more strikes following labour unrest over the past weeks.
Dr Luncheon, during his weekly press conference yesterday, was highly critical of the union’s behavior.
“Sugar is more than a matter of sugar workers. Sugar is about the local industry, conditions in the rural communities, the economy of Guyana. The union runs the risk of appearing utterly partisan and single-minded in responding to a situation that exists on the ground.”
According to the Head of the Presidential Secretariat, the union was offered a role in management. “At the last GAWU congress, President Bharrat Jagdeo threw out an offer to the union to take over management. This was not new. Since 1994, the then President offered GAWU membership on the board of directors. While the union quarrels about management, it continues to decline effective participation in management.”
Luncheon pointed out that the union has been invited and “we continue to invite the Union to be involved in management. The union has to be involved. The place is reserved for them on the board and it is up to the union to decide how and when they will be involved. Their analysis of finances in the industry is woefully one-sided, woefully.”
The spokesman questioned the reasons of the union to ignore the cost factors, “the implications of the debt to put the factory (Skeldon) in place; how they could ignore the deficit occurring regularly and how they seem to suggest that currency is fluctuating is mind boggling.”
GAWU, although not announcing its demands, had indicated that it may be asking for a 15% wage hike for workers.
But GuySuCo is sticking to a 3% offer saying that it cannot afford more in light of poor production and other factors.
GuySuCo says that losses for this year are projected at $2.5B with almost $5B owed to banks.
Additionally, says Chief Executive Errol Hanoman, the company is facing a grim financial situation with almost $1.8B owed to creditors at the end of September.
Last year, GuySuCo, one of Guyana’s biggest foreign exchange earners, declared losses of $4B, owing banks $3B. The declarations by Hanoman were made almost two weeks ago during a press conference by the sugar company on the strike.
Painting a bleak picture of the company’s current position, GuySuCo had said that given the grave financial situation worldwide, many companies would have opted to close estates and send workers home.
“Instead GuySuCo, has come up with a bold plan to turn the industry around. Without the turnaround plan, it is unlikely that the industry would survive another three years.”
Stating the company was confident of the reversal of fortunes for the industry in light of the turnaround plan, Hanoman expressed concern over the likely impact the strike will have on bankers, creditors and customers.

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