Pressure mounts on GuySuCo to raise production levels

Jul 17, 2010 News

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– as outstanding 24 workers honoured

By Leonard Gildarie

Some two dozen sugar workers, declared model employees, were honoured by the Guyana Sugar Corporation (GuySuCo) yesterday for their performances last year, even as upbeat officials said it is targeting an unprecedented 400,000 tonnes of sugar by 2012.
At a packed setting at the International Convention Centre, Liliendaal, East Coast Demerara, officials also told workers of the eight sugar estates that there is no way that industry is going to fail, despite a few naysayers who wished it otherwise.
Newly appointed Chief Executive Officer (ag), Paul Bhim, disclosed that the Corporation is targeting a programme that sees sustained production even as there are severe challenges ahead.
Already, GuySuCo has brought new lands under cultivation and a new, state-of-the-art packaging facility will start operation in early 2011. These, along with key changes in the industry, including mechanisation, will contribute to increased production, one of the main problems facing the Corporation now.
In the Skeldon area alone, 14,000 hectares of cane land is being placed to cultivation with the intention to allow the new factory there to economically produce 110,000 tonnes of sugar from 1.1M tonnes of cane.
While the bad news is that the European price of 36 per cent has staggered the industry, and a falling value of the Euros threatening prices also, the good news is that co-generation facility at the new Skeldon factory is supplying nearly all the electricity for the Berbice area.
Last year, $4B was plugged into the industry with almost 75 per cent of this to agricultural projects.
In the areas of human resources, there are more training planned for workers. The CEO was convinced that the challenges facing the industry are not insurmountable.
Also at the ceremony was Prime Minister, Sam Hinds, who is performing the duties of the President.
Bring it on
Chairman of GuySuCo, Dr. Nanda Gopaul, in lauding the eight Champion workers and the 16 runner-ups, urged that there be a trickle down of these performances across the entire industry.
It is simple, more production means more sugar- and that is what the industry needs.
He noted that when the current Interim Board was appointed last year, GuySuCo was facing its lowest point in 15 years.
While a turnaround plan was activated to rescue the industry, some of the targets could not be reached because of unavoidable factors.
Fortunately, there are positive signs with increased yields and more lands under cultivation.
Dr. Gopaul, noting that workers have built the industry up through sweat and blood, blasted the critics whom he said were friends of some officials in the industry who have since been let go.
He challenged the critics to debate the sugar industry, “anytime, anywhere…we will talk sugar.”
The Chairman was convinced that the current Board and management are fully competent and capable of bringing the desired changes to make the industry profitable.
Charging workers to put their shoulder to the wheel, the official stressed that while other countries in the region had given up on sugar, Guyana had gone the other way and decided to upgrade the industry.
Regarding the Skeldon factory which has been facing problems since it was handed over, the official called for patience, noting that there are capable people at GuySuCo.
He acknowledged that workers need a deserved raise but these are coming, he promised, as soon as production is increased.
Gopaul also blasted the past Booker Tate management who he said was the cause of many problems facing the industry.
This was the reason that GuySuCo took a decision to “send them home” and not pay any outstanding monies.
According to the Chairman, some of the very people who are now criticising the industry are “lovers” of the past management.
Less excuses
However, Komal Chand, President of the Guyana Agricultural and General Workers Union (GAWU), was critical of the low production which has brought a pessimistic outlook in the industry.
Citing low production over the past two years, Chand said it is unbelievable with eight factories and sufficient lands, that GuySuCo cannot produce more. It has workers and has the resources.
He blasted the number of excuses offered by GuySuCo’s management, with recently another one being offered- “El Nino”.
Already for this year, for the first crop, sugar production fell short of the targeted 91,000 tonnes by some 9,000 tonnes.
With no shortages of skills for sugar in Guyana, the union official was to the point- “stop using excuses and get the work done”.
He also blasted the falling Euro excuse as …just another excuse.
Chand also urged for management to examine its “extravagance” and style of management and noted that the causes for workers drifting away need examination.
Yesterday, Minister of Agriculture, Robert Persaud, whose portfolio covers GuySuCo, noted that sugar workers have a legacy to maintain- the sugar industry must never be allowed to fail.
“As the largest locally owned corporation employing 19,000 workers singling out the most outstanding workers is no easy feat. But it is an inescapable duty for it demonstrates the care and concern that the board and management of the corporation have for those who have historically constituted the backbone of the sugar industry in Guyana, you our hardworking workers.”
With workers at the forefront of the struggles for the survival of the industry, Persaud warned that despite the adverse financial situation, the sugar corporation must continue to place a high premium on the contribution of workers.
“You, the members of the honours’ roll have become the torchbearers of outstanding performance, role models to your fellow workers and, no doubt, would have derived great personal satisfaction and pride from your achievements.
“And let us be reminded that outstanding performance is what our industry badly needs at this time, at all levels.”
Noting that the sugar industry is owned by the people of Guyana and it must always take pride in taking care of workers and their families, the Minister noted that this is evidenced by the fact that 56 per cent of GuySuCo revenues is used to meet employment costs.
“In 2009, the Corporation paid $933M in Weekly Production Incentive and Annual Production Incentive and these are tax free incentives. As of May 2010, the corporation paid $191M for Weekly Production Incentive and workers also enjoyed tax free pay for weekend work.
The European Union price cut of 36 per cent, taking full effect this year, resulting in GuySuCo experiencing a $10 billion loss in revenue and the depreciation of the Euro, will see a drop in revenue by another $1billion, the Minister said.
“Tell me which business can survive a loss of revenue of close to 50 per cent of its revenue in one year.  Such a cut would cripple most businesses. Even transnational corporations would have filed for bankruptcy; laid off thousands of workers as we see in the US, Europe and the Caribbean; impose a wage cut or even a wage freeze; and even close some of their operations.”
However, he said, Guyana has chosen not to walk this path.
He too urged for an increase in productivity to assist in mitigating the negative factors that will definitely cause hardship to the industry and country as a whole.
“You would recall that your government, in the face of the political opposition’s call to shutdown the industry as was done by several countries in region, invested an additional $44 billion in sugar during the recent past.”
According to Persaud, there will be continued changes. “There must be continued improvements in the way we managed the industry.  We need more canes in our factories. We need more sugar for export. We need to cut the cost of production. We have to eradicate corruption and wastage. And I must commend the Board for taking bold steps to enhance efficiency and fixing weak procurement systems.”
He also called on the management team at GuySuCo to heed to the call and to up its performance level.
“On this note, allow me to publicly congratulate our new Chief Executive, Paul Bhim, and to thank the outgoing Chief Executive, Errol Hanoman, for his service to the industry. I am sure Mr. Bhim and his team are up to the challenges. I expect that the Board will insist that they deliver results.”
Champion Workers
It was disclosed yesterday that the Honour Roll to recognise champion workers would normally be done annually in the individual regions. However, this year it was decided to host one ceremony.
At Skeldon factory, the Champion Worker was Krishnanand Bhawan; at Albion –Ronald Allicock; Rose Hall-Totaram Sanchara; Blairmont-Teekaram; Enmore-Ramsahoi Parsram; LBI- Hansraj Rambarran; Wales- Paulette Garnett; and Royston Petty from Uitvlugt.
In addition to monetary rewards for their performances, the workers received gold pins. The champion workers will also be going for a three-night paid vacation at Lake Mainstay, Essequibo.

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