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Govt. probes Demerara Timbers claim of closing operations

Oct 14, 2016 News

– to seek investor willing to respect workers’ rights

Days after sacking 11 workers who participated in protests action for increases, a major logging company is finding itself in hot water.
Demerara Timbers Limited (DTL) could very well lose the over 500,000 hectares of forest concessions it has, because of current unease with workers and threats that it is winding up operations and seeking new investors.
According to the Ministry of Natural Resources yesterday, it is gravely concerned about the recent dismissal of 11 workers of DTL for engaging in protests action against the company.
The workers, earlier this month, took action to press for an increase.
However, shortly after resuming work, the employees were issued letters severing their services.
The Guyana Agricultural and General Workers’ Union (GAWU) has complained that labour regulations were breached in the sacking of those workers.
The ministry in a statement yesterday expressed its desire for the matter to be resolved amicably and speedily between the company and its union.
The ministry said that it is also concerned about confirmed reports in sections of the media that the company will be winding up its operations at Mabura and closing by the end of 2016.
“The Guyana Forestry Commission has been mandated to investigate and provide a report,” the ministry said.
In the interim, the Government of Guyana, through the Ministry of Natural Resources, and the GFC, will seek new investors willing to operate the concessions held by DTL, the ministry said.
The process will be done in a manner that is “sustainable, environmentally friendly and respectful of workers’ rights”, the ministry assured.
DTL has over 516,000 hectares in Timber Sales Agreement in areas at Mabura, Region 10, making it one of the largest concession holders in the country. The company is officially controlled by an investor, said to be from Malaysia.
The David Granger administration, since taking office last year has vowed to tighten oversight on the country’s resources and other regulations, including adherence to labour laws.
A few weeks ago, GFC announced that it has taken away the forestry concessions of BaiShanLin, a Chinese company that was the second largest holder in Guyana.
The decision had to do with outstanding payments.

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