Downsizing GuySuCo was right decision-Ramjattan

Jul 19, 2022 News

Kaieteur News – Given the numerous issues affecting the sugar industry and government’s failure almost three years into office to bring the sector to a workable position, Alliance For Change (AFC) Leader, Khemraj Ramjattan has insisted that the right decision was made when the former A Partnership for National Unity plus AFC government decided to “right size” the ailing sector.

Some of the protestors who picketed the sugar company at Albion last week

During an AFC press conference last week, Ramjattan said that the continuing false explanations and narrative being given by the Chief Executive Officer of the Guyana Sugar Corporation are ill-advised and will lead to nowhere. “The evidence is clear that the perennial shortage of labour will persist in this sector; that the new CEO of GuySuCo and his arrogant attitude towards experienced managers and cane cutters will decidedly demoralise staff and employees; and, and that world market prices will continue to be half of what GuySuCo’s production costs are. All the propaganda spouted by the CEO and the Government will remain hollow and will not move the industry forward,” Ramjattan said.

The former government minister reiterated that sugar has been dying since Guyana lost the preferential prices on the European Union market by the World Trade Organisation ruling that those preferential prices violated open market competition rules. “Guyana has been operating at a loss since then. Our cost of production is and will be double the price we will sell for,” Ramjattan continued.

He highlighted that Guyana’s local workforce is not trained beyond substantially a cutlass and punt trajectory. “This will result in an intergenerational transmission of poverty in these communities which the People’s Progressive Party (PPP) plays on. This is bad for economic growth as girls are groomed to become housewives to support boys who enter the cane field. There is no opportunity for economic innovation through exposure to education, or technical advances.”

In understanding the dialectics of the situation, Ramjattan said, “Yes we decreased in our support when we made the rightsizing decision, but right sizing is now the right decision.” Sugar does not have a future like it used to. In view of that fact, all the promises of reopening is proving to be a strain on the sugar workers and the economy as over $11B has already been expended, but still things have not been working in the industry, Ramjattan said. The party leader said that, “The AFC maintains that the right-sizing done under the APNU+AFC Government was the correct approach for the long-term growth and development of the country.”

The GuySuCo has been experiencing significant difficulty in bringing the sugar corporation to feasibility. The company has experienced serious decreases in meeting production levels and has blamed inadequate equipment as one of its main deficiencies. Apart from that, there seems to be ongoing differences between the GuySuCo executive, its Board of Directors and as of recent, the Guyana Agriculture and General Workers Union (GAWU) which has already called for the sacking of the new CEO. Information is that while the experienced and senior staff has provided certain advice and direction to the new CEO, he seems ready to address company issues as he sees fit, while some decisions appear not to be in keeping with the Boards direction for the company.

One such area is the purchase of “unsuitable” equipment and the circumstances under which the machines are being procured. The tractors are to be used as the company works, specifically, to increase production levels. The GAWU has accused the sugar company of failing in others areas which is causing the continued issues being faced. Last week, two separate protest action were held at two of the remaining sugar facilities after workers lamented disrespect and mismanagement of the sector.

The sugar industry had been the employer of some 7000 workers and by itself, represented significant sugar industry votes in a sector controlled mainly by the PPP. Much criticism was received when the APNU+AFC closed four of the seven estates putting thousands of workers out of work. The move was said to be necessary however as Guyana continued to pour billions of dollars into an industry that remained profitless for years. The PPP has promised to revitalize the industry and rehire the fired workers. So far, this promise is proving a mammoth task. The government has begun offering part-time jobs and cash grants to make up for the deficiencies.

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