Trotman to meet Barama workers on forest concession closure

Oct 23, 2016 News

Days after news that Barama Company Limited (BCL) announced it will exit its logging operations

Minister Raphael Trotman

and relinquished its 1.6 hectares of forest concessions, Minister of Natural Resources, Raphael Trotman, has assured that he will personally be meeting with affected workers.
Barama, up to recently, controlled the largest bloc of forest, and has since made it clear that it will give its fullest cooperation and comply with all requirements to ensure that the process is smooth.
Fresh from an overseas visit, Trotman in a letter to the editor yesterday, stated that the Guyana Forestry Commission (GFC) will continue to engage Barama’s management, whilst working in tandem with the Ministry of Social Protection, and the workers representatives, to address a myriad of issues that arise from the relinquishment of the 1.6 million hectare forest concession.
”Any plan going forward will have to take into account the welfare of workers and the obligations Barama was required to perform under the now expired agreement. Many of these, as can be imagined, cannot be brought to an abrupt end,” Trotman said.
The minister said that at moments like these, of change and transition, stakeholders have to work to make the process as smooth as possible by avoiding panic, knee jerk reactions, or “one upmanship” tactics.
“Whilst the Government is disappointed by the action of Barama in making statements about workers being laid off even before the relevant entities have met to map the way forward, and is yet unable to find a rational reason why this precipitous action was taken, nevertheless it will continue to provide mature responses, and direction, by engaging all stakeholders objectively and in good faith.”
Media reports tagged the employment losses at 500. Barama had around 800 workers up to last year.
“The Government expects that Barama likewise, and other stakeholders, will be committed to beneficial talks and will avoid brinkmanship as all can agree that this is a slippery slope one should consider carefully before embarking on,” Minister Trotman said in his letter.
The various stakeholders will meet in a few days’ time to begin the process of defining the way forward for the workers, the company, the forest concession, and the dwellers and users of the concession, including miners.

Barama’s BuckHall operations, Essequibo River, where its veneer and sawmilling plants are located.

“In the coming weeks, as Minister responsible, I will personally hold meetings with the workers at the Barama sites at Land of Canaan, East Bank Demerara and Buckhall, Essequibo. Together, we will find the best path forward,” he said.
Meanwhile, Barama in a comment said that it has noted the Minister’s concerns.
“We have noted the Ministry of Natural Resources concerns and wish to state our fullest cooperation and compliance with all requirements to ensure that this is a smooth process. The official statement of the company was issued on Wednesday October 19, 2016. This official position has been communicated to all relevant stakeholders inclusive of the government, union, workers and media.”
Barama “reiterated” that it first approached Government on the September 2, last year, with a proposal for the renewal of both the company’s Investment and Forest Concession Agreements and has continued discussions with government over this period.
“Earlier this year Barama, in correspondences with government, had advised government that economic conditions influencing the company’s continuing investment in Guyana’s forest industry were not encouraging. Barama has, as a consequence, now regrettably concluded that it is no longer viable for the company to continue its forestry operations. Barama, however, will be continuing all of its other projects in Guyana, inclusive of veneering, plywood manufacturing and sawmilling.”
Barama said that any other statement was on invited comments based on questions or concerns expressed by the media – a key stakeholder.
“The impact on employment losses started early in the year as a result of prevailing economic conditions and this was clearly communicated to government, Chief Labour Officer, union and workers at all stages. The forest closure is just adding to the already existing situation in terms of employment losses. The process of closing the forest operations will take place over the next three months with the necessary approvals of government to ensure that all the legal requirements inclusive of workers’ welfare are properly addressed.”
Barama said that it will continue to work with all relevant parties and to remain compliant.
“Any other claims or assertions remain unclear to us. The company looks forward to engaging with Government to explore the continuation of its other operations to sustain our value-added and job creation potential in Guyana and to determine a new Investment Agreement.
“With the proper closure of the forest operations we would like to focus our attention and energies towards this goal.”
Barama was considered the biggest player in the timber industry and was one of the two biggest investors- along with the Guyana Telephone and Telegraph Company- back in the 90s.
It has invested in veneer and sawmilling operations at Buck Hall, Essequibo River, and a plywood factory at Land of Canaan.
News of the closure of Barama’s forest operations last week sparked concerns about the fallouts, including the employment losses.