GuySuCo extends crop by two weeks, warns of lower production next year

Nov 05, 2009 News

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By Leonard Gildarie
As time runs out, the Guyana Sugar Corporation (GuySuCo) says that it will have to extend this crop by two weeks. Possible rains may force lower production estimates for next year, the corporation stated.
With the countrywide sugar workers’ strike entering its sixth day yesterday, the Corporation also called for an immediate resumption of work as the current situation is costing the industry millions daily.
During an interview with Kaieteur News, yesterday, on the status of the industry, Chief Executive Officer, Errol Hanoman, said that the current situation is placing even more pressure on the Corporation especially with banks and creditors paying a close eye.
In a few days, one of the bankers of GuySuCo, ING Bank, is expected to be in the country to discuss, among other things, the status of the Corporation. Meetings are also expected with the local banks and creditors to arrive at a possible solution.
Present with the GuySuCo head at the Ogle office were Francis Carryl, Head of Industrial Relations; and Romel Roopnarine, Communications Officer.
According to Hanoman, the dire financial situation of the Corporation should be of immediate concern to all Guyanese.
While there is a turnaround plan to bring the GuySuCo out of the woods, the company said that it is doing its utmost to work with the Guyana Agricultural and General Workers’ Union (GAWU) to bring the situation to a close.
Having a strike for almost a week, adding to an earlier one that lasted for two days, last month, is definitely not helping the situation and is disrupting production, the official said.
Hanoman noted that GAWU is fully aware of the Corporation’s predicament yet what is puzzling is the unjustified conduct of the union.
Signaling a possible change in industrial relations, Hanoman said that the old adversarial style can no longer work since it can send the wrong signal.
“It is the bankers and creditors that we are worried about…what must they be saying? We have a turnaround plan, dismal production, and now the strike. What signals are we sending to the bankers?”
GuySuCo said that during the wages negotiations, it has strictly confirmed with the current Collective Labour Agreement. However, he claimed, the union is not sticking to the process as established, which stipulates that a 72-hour notice should be given to the Corporation before strike action.
During last month, on October 14 and October 15, no notices of strike were issued to the Corporation, yet the workers proceeded on strike action. An estimated 600 tonnes of sugar was lost then, GuySuCo said yesterday.
However, this time around, GuySuCo disclosed that it was careful when burning cane.
Some 300 punts of cane left at Rose Hall Friday were taken to Albion to avoid wastage. “As management we had to take a decision.”
Currently, with the cane on hand and if the workers resume by tomorrow, GuySuCo says that it will be able to produce in excess of 900 tonnes of sugar which works out to around $91M in revenues.
However, the officials expressed concerns over possible rains, which may affect current harvesting. The weather is right to harvest.
According to Hanoman, while GuySuCo had taken a few measures to minimize losses because of the strike, what is of more concern is the fact that the Corporation lost an opportunity to harvest during excellent weather. Estates take almost a week to get back on track.
According to Carryl, GuySuCo is still awaiting word from the Ministry of Labour as to who the members of the Arbitration Tribunal are and what the terms of reference will be.
Meanwhile, Hanoman responding to accusations by GAWU that GuySuCo caused the strike to hide its dismal performance refuted this contention and pointed out that every detail of the current situation is in the media.
He explained that GuySuCo withdrew its three per cent offer last Friday after the talks were declared deadlocked. At that point in time, the Corporation decided to go directly to arbitration.
“GuySuCo has no ulterior motives. We have laid bare the industry’s soul on national issues.
Issues affecting the industry can’t happen overnight. We don’t want to employ the blame game. We need the workers on board.”
Hanoman refused to contemplate GuySuCo’s predicament if workers fail to return by tomorrow to work.
On Monday, GAWU accused GuySuCo of deliberately causing the strike to hide the dismal performance of the industry.
General Secretary, Seepaul Narine, said that it has become increasingly clear that GuySuCo precipitated the action by the workers since they knew that the original production targets could not have been met.
The GAWU official also claimed that prior to the current strike which started late last week, the Skeldon factory, affected by a host of problems, abandoned some 2,400 tonnes.
“It is to be hoped that sugar workers are not made scapegoats for this wastage,” the statement warned.
GAWU has also refuted claims by Errol Hanoman, Chief Executive Officer of GuySuCo, who reportedly said during an NCN programme on Friday, that the company would lose some 17,000 tonnes of burnt cane (1,550 tonnes sugar) from the strike.
On Friday, sugar workers walked out after conciliation proceedings over wage talks were declared deadlocked by the Chief Labour Officer.
Minister of Labour, Manzoor Nadir, then ordered compulsory arbitration.
Since Friday, the country’s sugar industry has been on a shutdown and GuySuCo’s management has been engaged in several meetings to arrive at solutions.

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