Time to stop playing politics with the sugar industry

Jun 16, 2013 Letters

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Dear Editor,
The sugar industry, despite its current challenges, still remains a critical component of the country’s overall development. It is the single largest employer of labour, and contributes significantly to the country’s GDP. It is true that the share of that contribution to the GDP has declined over the years due to greater diversification of the country’s economy and the favourable prices for minerals on the world market in particular gold and bauxite. However, sugar is still holding out as a major player in the economy.
There was a time when sugar was “King”. Those were the days when the industry was owned by expatriates or absentee owners whose main concern was the optimization of profits even at the expense of the sweat and tears of the sugar workers. The workers were condemned to a life of grinding poverty whilst the managers and owners were enjoying the good life. Most of the profits generated from the industry were sent overseas with very little of it utilized to improve the living and working conditions of the sugar workers.
It was not until the formation of the PPP and the victory of the PPP in the elections of 1953 that some attention was paid to the lot of the sugar workers by the colonial authorities. One of the first acts of the new PPP government was to pass in the Legislative Assembly the Labour Relations Bill which was intended to recognize any union that had majority support through democratic polls. This law would have most probably recognized the Guiana Industrial and Workers Union (now GAWU) as opposed to the Man Power Citizens Association (MPCA) which for all practical purposes was a company union and therefore not effectively and militantly representing sugar workers. This was too much for the sugar planters to bear and in collaboration with the colonial office engineered the removal of the PPP from government after a mere six months in office by way of a suspension of the constitution.
The political history of Guyana is closely intertwined with the history of sugar. Indeed, with the exception of the Amerindians, all the other ethnic groups in Guyana came to the shores of this country to provide labour to the sugar plantations. Conditions of life were abominable and at times brutal. It was at the graveside of the slain sugar workers in June 1948 that Dr. Cheddi Jagan made a solemn pledge to dedicate his entire life to the cause of the struggling workers which found expression in the formation of the PPP in January 1950. The ‘Enmore Martyrs” as the five slain sugar workers are now referred to, could be considered as the catalyst in the formation of the PPP, the first mass-based political party in Guyana.
In Guyana, there was a strong convergence between politics and economics, especially in relation to sugar. As mentioned before, the first duly-elected PPP government of the early 1950’s was unceremoniously removed from office because it sought to enact legislation that affected King Sugar. Sugar workers formed a significant political constituency which along with other categories of workers and farmers was responsible for the victory of the PPP in all free and fair elections held in Guyana.
The PPP has always championed the cause of sugar workers from its very inception. Indeed, it was the PPP that waged the battle for the recognition of the GAWU as the bargaining agent for sugar workers after that aborted attempt in 1953 which eventually led to the downfall of the PPP. It was the PPP that pressed the PNC regime to reduce the unconscionable levy imposed by the PNC regime on the industry which during the difficult PNC days provided an economic lifeline to the Guyana economy. Indeed, it took the return of the PPP to political office to bring an end to the sugar levy which in the past was a heavy financial drag on the industry.
Today, the industry is experiencing some challenges which have nothing to do with any lack of interest or attention on the part of government in this vital industry as claimed by opposition elements. Part of the difficulty has to do with the precipitate drop in the price of sugar which resulted from an end to sugar subsidies from the European Market. Under the Lome Convention, sugar imported from the African, Caribbean and Pacific countries  by the European Union countries enjoyed preferential prices for sugar which was way above the world market price. This loss of that preferential market is a severe blow to the sugar industry from which it is still to fully recover. One way of dealing with that unfortunate situation was to reduce unit cost of production and to explore value-added options including the packaging and refinement of brown sugar. The Skeldon Modernization Programme was intended to lower production costs through higher levels of factory efficiency and the production of high yielding canes.
This is not to suggest that more cannot be done on the part of management to reduce inefficiencies, both technical and managerial. The new Skeldon Factory is currently underperforming and the quantity and quality of canes needed to allow for maximum factory throughput leaves much to be desired.
The above notwithstanding, the industry would find it difficult to move forward unless it benefits from significant inflows of capital to allow for re-capitalization and for operational expenditures. The current administration, cognizant of this reality has provided budgetary support for the industry. The political opposition, however is unsympathetic and has done everything possible to deny the industry financial support at a time when it is most needed. The opposition parties are clearly using the industry as a political football.
It is time to stop playing politics with the sugar industry.
Hydar Ally

 

 

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