THE BARAMA WORKERS AND THE FUTURE OF FOREIGN DIRECT INVESTMENT

Oct 31, 2010 Features / Columnists, Peeping Tom

The decision of the government of Guyana to meet with the workers of Barama is a welcome development.
It shows sensitivity to the plight of these workers, but does not by itself indicate a realignment of the class-based nature of the present administration.
Some two hundred and seventy-four workers were laid off by the company following what was said to be problems with a boiler system.
The implication for these workers is that they are being put on the breadline a mere two months before the traditional Christmas holidays, a time when we all need a little bit of extra cash.
Some of those laid off have many years of service to the company. They will now have to start afresh, if they find another job.
It is not going to be easy since jobs are not easily available within the economy.
By deciding to meet with the workers, the government has shown an appreciation of the fact that a large batch of workers are now without jobs.
The government must be commended for its action since we are a poor country and unemployment relief is unaffordable. It is however hoped that whatever package is offered these workers, that it does not serve as an incentive for them to not try to find alternative employment.
Most definitely what will be offered would be short term, and would not necessarily fully compensate the workers for the loss of income that they will suffer.
It is most probably that the government will offer a short-term grant and attempt to try to place some of these workers in jobs through its Central Recruitment and Manpower Agency. The workers will no doubt be most grateful for whatever assistance they get. They will not look forward to anything special or sustained since they understand that they are a large group and therefore the help can only be limited.
It is hoped that the government would work with the private sector to find employment for these workers.
It is also hoped that the company for which they had worked would make a public commitment that if and when the boiler system is fixed and operations expanded, that those laid off would be given first preference for jobs.
Big companies are into the business of making profits, not in providing welfare assistance. When things go wrong and there is a downturn in production or sales, then cuts have to be made. These cuts are normally made at the level of labour, a reality that Guyanese workers long accustomed to job stability will have to appreciate. There can no longer be any guarantees about job security and this is something that the workforce needs to appreciate.
No company can be expected any longer to carry losses just for the sake of preserving jobs.
And definitely, this precedent that the government is setting that it is helping the workers must not be seen as something that every laid off worker should expect.
The present case is special because of the large numbers that are affected, and the government has so far acted responsibly in deciding to meet with the affected workers.
When they do meet, the central concern will no doubt be about the assistance that is to be provided. But the forum should also provide the workers an opportunity to express their views about working for foreign companies operating in Guyana. The meeting should not just be about compensation for workers, but about what can be done to avoid a similar recurrence since as Guyana inevitably becomes more into the world economy, there will be future scenarios similar to what these workers face.
Attractive concessions are usually offered to these companies and perhaps the lesson that we should be learning from this entire experience is that any future concessions should be tied to labour stability.
In this way, foreign companies would appreciate that since the main benefit they bring to countries such as ours is the creation of jobs, that the concessions they enjoy would be premised on the level of job security that they can promote.
Concessions should be tied to jobs, not just production, since you can have production using capital intensive methods.
Tying concessions to job security would prove beyond any shadow of doubt that the government is pro-workers, rather than it is now so commonly perceived linked to the interests of the capitalist class.

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THE BARAMA WORKERS AND THE FUTURE OF FOREIGN DIRECT INVESTMENT

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