Govt. promises $300M in severance to Diamond Estate workers

May 18, 2011 News

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President Bharrat Jagdeo told sugar workers from the Diamond Estate yesterday that government will intervene and assist the Guyana Sugar Corporation (GuySuCo) with funds accumulating to $300M to ensure that the 375 workers receive their long-awaited severance pay.
The Head of State made the announcement at the Diamond Secondary School, East Bank Demerara (EBD) at a specially convened meeting.
Jagdeo told the gathering that government sought to intervene once more and render assistance since “the financial reality for GuySuCo is such that they are in deep trouble”.
He stated that he felt the need to step in, because earlier last year, the Guyana Agricultural Workers & General Workers’ Union (GAWU) filed a motion against GuySuCo seeking severance pay for the hundreds of field workers of the Diamond Sugar Estate (which officially ended all planting activities after the last harvest was completed) and such court actions usually take “very long, many, many years to resolve because our court system is not known for its speed… they work at their own pace, sometimes they don’t work at all”.
Jagdeo also deemed it (assistance) necessary since GAWU’s course of action to seek redress through the court was an uncertain path since one could not tell if the decision would be in the sugar workers’ favour.
The workers were then made aware that some persons could argue in the court about the law of Guyana which states that if people have to move beyond a certain radius of 10 miles, they have to be paid severance, however, GuySuCo had a different view of the matter that moving from borderline to borderline, being paid a disturbance allowance which covers expenses such as transportation ($2M which was being spent weekly), the severance issue would not apply.
Sugar accounts for 16% of the country’s Gross Domestic Product (GDP) and over the past 10 years, $50B was invested into GuySuCo by government to sustain its productivity level and the company’s existence.
President Jagdeo proffered that before 1992, the sugar levy was $3B and from 1992 to date, government has “not collected a single cent for sugar levy into the treasury”, while explaining that the sugar company cannot meet costs or pay bills without government’s support, resulting in the administration having to bail out GuySuCo on a regular basis.
The workers were also reminded that sugar production and success also depends on the weather, commitment of both the company and its workers, and the turnout on the estates.
The country is reportedly losing $9B annually ever since the European Market cut its prices for sugar and because of the importance that it holds for the sustenance of the country’s livelihood, the President assured the sugar workers that “this is going to cost a lot of money, almost $300M. I told the Minister of Finance to find the money to make sure you get the severance”.
The President reiterated that the reason for such an intervention was to avoid the issue “lasting forever” and that government like GuySuCo “needs people to work”.
He emphasised that these workers are “not being laid off” and implored that they remain committed to their jobs and continue to work in the capacities in which they have been functioning.
President Jagdeo promised that the money ($300M) would be made available to GuySuCo by the end of next week and subsequently one should expect “an early payout”.
Minister of Agriculture, Robert Persaud, who was also present at yesterday’s meeting, explained that government has over the past two years been “intensely involved in the lives of sugar workers and the GuySuCo”.
He stated that the concerns of all workers, especially the sugar workers, were of “paramount importance” and society needs to be more optimistic since a number of factors affect the production level and thriving business for both crops and livestock.
Persaud told the gathering that there was an overall 45% turnout of workers throughout the estates, citing that only 35% functioned at Uitvlugt while a mere 37% were present at the Wales Sugar Estate, West Bank Demerara and on the West Coast Demerara.
He beseeched the workers to return to their duties after being paid severance since their families as well as the country’s development and sustenance depended on their actions.
It was reported that the economy is continuing its growth and the rice industry is booming with a projection of 400,000 tonnes at the end of this year.
GAWU President Komal Chand, explained that the commitment of $300 million is an “important junction that shows that workers’ calls are being recognised by GuySuCo and Government”.
He stated that he was pleased that the matter is finally to be settled since it was imperative that the severance pay be distributed to workers for the services rendered.

Chand told the meeting that “once the matter is resolved, we don’t have to pursue it any longer at court and talks will be held with the lawyers so that the matter would be withdrawn”.
The union leader said “16% of the population is connected to the sugar industry; we have suitable land, resources, factories and human resources…”
He closed by saying to the workers, “whatever we feel you have a right to, then we feel you should enjoy it, and that right.”

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