Latest update January 18th, 2025 7:00 AM
Arbitration Tribunal recommends 1% increase for sugar workers
GuySuCo doles out 63% of earning to pay wages, salaries
By Leonard Gildarie
A special arbitration tribunal established to rule on salary and wage increase for workers in 2012 has ordered a one per cent across-the-board raise for sugar workers after finding that the state-owned company is doling out a worrying 63 per cent of its earnings for those payments.
The 17-page report from the three-man tribunal headed by Major General (Ret’d) Norman McLean which was handed over to union officials and the Guyana Sugar Corporation (GuySuCo) yesterday, also warned that the industry may have to consider a freeze on increases if the situation of poor production continues.
Also appointed to that tribunal which was established in January by the Ministry of Labour, were Dr. Gobind Ganga, and economist, Dr. Clive Thomas.
Members of the Arbitration Tribunal, and representatives of NAACIE and GuySuCo at yesterday’s handing over of the report.
The body was appointed after talks broke down last year between GuySuCo and the National Association of Agricultural, Commercial and Industrial Employees Union (NAACIE) over job evaluation payments and increases for 2012.
Industrial relations came under severe criticisms with the tribunal urging cool heads.
GuySuCo has been taking a beating in recent years with falling productions and struggles to contain a migrating workforce which has been eroded by the attractive gold fields and construction industry.
A US$200M investment into a new Skeldon factory in Berbice and moves to upgrade cane lands failed to revive production levels which fell to a 20-year low last year.
Government has been targeting increased mechanization and even mulling a new timing for the crops as part of its strategy.
Yesterday, GuySuCo’s Human Resources Manager, Jairam Petam, said that the Corporation’s call for arbitration after failing to meet an agreement was mainly due to the fact that there was no money to pay the increase demanded by NAACIE.
He warned that the current performance of the crop is “pathetic” so far, compounding the Corporation’s woes.
NAACIE’s General Secretary, Kenneth Joseph, who was among other union members at the Brickdam office of the Ministry of Labour, said that it was never the intention of his team to turn to arbitration. There was “great surprise when we actually had to come to arbitration”.
He complained that NAACIE’s workers, numbering less than 1,000, are not “step-children”. The union leader was referring to a perception by his union that GuySuCo seemed to favour the Guyana Agricultural and General Workers Union (GAWU) –the largest workers’ union- more. GAWU is said to control over 16,000 sugar workers.
Ruling
GuySuCo was given until December 31 to make that job evaluation payment.
On the issue of the across-the-board one per cent recommended for workers in 2012, the tribunal ordered that this was the amount to be paid –no more- taking into account GuySuCo’s financial situation.
The tribunal heard that GuySuCo’s situation was compounded by the loss of preferential markets in Europe and despite$25B assistance programme, that sum did not entirely pass down to the Corporation.
However, management pointed out that last year a $4.5B subsidy was granted by the government to GuySuCo.
According to the report, production declined in the last five years by 15 per cent with a target tagged to a lowly 247,720 tonnes this year. There are also concerns by the union and GuySuCo over the quality of canes with more tonnage required now to make sugar.
The tribunal also knocked the relationship between the unions and GuySuCo which would from time to time force arbitration proceedings. There is a need, Dr. Thomas urged, for the parties to engage in “good industrial relations practice.”
The report was critical: “We noted that although the Arbitrators themselves tried to get the two parties to have some bilateral meetings outside of the arbitration process, the parties were unwilling to meet and talk. We also felt that GuySuCo’s management needed to initiate and lead and be more proactive.”
In its recommendations, the tribunal concluded that the industrial climate of the sugar industry is a turbulent one characterized by the “high number of unrests and strikes followed by tribunals to settle such issues.”
It was also recommended that the concerted and team effort by NAACIE, GAWU, the Guyana Labour Union and GuySuCo be established to agree on a way forward, taking into account the Corporation’s finances.
Another move should also be made to conduct an analysis to improve job satisfaction and possibly tie these to performance factors.
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