In Retrospect – The Aroaima Bauxite Operations

Dec 04, 2009 News

By R. O. Bostwick

The current labour/management impasse at the Aroaima Bauxite Mining operations has reached potentially explosive dimensions that warrant urgent diffusion to avoid a catastrophic explosion that could further polarise the society.
The Aroaima Mining operations has been jointly owned by the Guyana Government and Reynolds Metal on a 50 – 50 basis. The latter was however taken over in 2001 by Alcoa, one of the world’s largest producers of aluminium.
Here it must be stated that Reynolds had exclusively managed the operations with no significant interference from the Government of Guyana. However, following the ‘takeover’ of Reynolds by Alcoa, a concept paper was submitted to the Government with respect to the merger and restructuring of the Berbice Mining Enterprise (Bermine) and Aroaima Mining Company (AMC).
It should be explained that at the vital time Aroaima had bauxite ore reserves to last for approximately only three years while Bermine’s reserves at Kwakwani were projected to last in excess of 26 years.
But AMC had the advantage of extremely capable expatriate and local management personnel, excellent skills and efficient plant, equipment and machinery that were lacking at Bermine. A marriage of convenience would have therefore been beneficial to both parties.
It is unfortunate that the recognized Trade Union held very firm reservations, primarily because restructuring would have involved the closure of the Everton plant which in effect meant substantial downsizing of the Bermine operations.
It is not clear whether the Union understood that the substantial boost from the merger would have in the short term resulted in the recall of most, if not all the workers who were to have been affected by the closure.
In addition, the Union was probably not made aware that the proposed downsizing entailed attrition over a period of time and also, severance pay arrangements that were more generous than that prescribed by the Termination of Employment and Severance Pay Act 1997.
And to compound the situation, the Union’s stand was definitely fuelled by critical support from the political opposition.
The Government was apparently reluctant or afraid to be decisive, probably due to the militant posturing of the Union and the political opposition. As a consequence, following a number of adjournments, postponements and rescheduling of vital meetings, Alcoa, became understandably frustrated and took the decision to sell its half ownership to the Guyana Government for $1 (U.S.D) and pull out its expatriate personnel.
It is understood that funds that would have been plowed into the merged Aroaima/Bermine operations were redirected to Alcoa’s operations in both Suriname and Jamaica. It is understood that this totals in excess of $8 billion (U.S.D) Guyana’s loss was the gain of Suriname and Jamaica.
This sequence of events left the Government in a very tenuous situation with its operations at Linden also in limbo. In its financially strapped position options were decidedly limited. This led to the advent of Rusal which was a departure from what bauxite mining had been accustomed to in the past. Guyanese knew Alcan, Reynolds and Alcoa – all English speaking Companies. Now they had a Russian Company that had to rely on a battery of interpreters to communicate in sub-standard English. This was indeed a prescription for problems and the current state of affairs might certainly send the message that the Russians are not welcome in these parts. It is not only a language barrier but huge cultural imponderables.

Latest News

In Retrospect – The Aroaima Bauxite Operations

Related

Similar Articles

The Glenn Lall Show | January, 27th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Anna Regina Secondary reign supreme

Fifties from Forde, Drakes, McCaskie give...

CANOC Executive Committee gathers in Guyana for...

Dujon questions CWI over “surprise’...

Wills, Bahabur, Johnson shine at GTTA Novice...

Guyanese boxers shine at T&T National Boxing...

Features/Columnists

The third parties will not survive this year’s elections

OAS Secretary General Election and renewed OAS Consensus

Jagdeo caught fouling, found prevaricating

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

In Retrospect – The Aroaima Bauxite Operations

Share this:

Related

Similar Articles

The Glenn Lall Show | January, 27th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]