Govt to fund G$720M payout to sugar workers

Sugar workers countrywide will receive a five per cent one-off payment retroactive to January 2010, President Bharrat Jagdeo announced on Wednesday. At a meeting with scores of sugar workers at the International Conference Centre, Jagdeo disclosed that this payout will cost the government some $G720 million. This announcement was met with resounding applause. “If we achieve the target (298- 303,000 tonnes of sugar) next year, the five per cent becomes permanent with whatever increases you’ll receive next year,” he revealed. The president believes that the target outlined is achievable.

He warned that the payout, made possible by government’s intervention, was not up for negotiation, having been funded by a financial injection by government. The Finance Department of GuySuCo will commence working on processing the payout immediately.

The decision to offer this payment to sugar workers was influenced by the expanding local economy and the fact that many other workers, including public servants and the police and army, have received increases. Jagdeo thinks it is only fair that sugar workers also benefit. Meanwhile, the president called for unity in working to bring the sugar industry to the place it once was as a significant contributor to the Guyanese economy. Sugar, though still a sizable part of the gross domestic product, contributes less to the national economy. 

“We need to ensure that the industry moves forward,” Jagdeo urged. “Government will be helping GuySuCo.” According to him, the administration recognises the challenges facing the industry owing to several factors, including the European Union price cut which left Guyana with an annual loss of $9 billion. He mentioned other factors like poor weather conditions and low labour turnout have placed the industry in further limbo. It is the president’s opinion that a dead sugar industry, especially in the Berbice area, would leave the communities there like “ghost towns”. However, he remained optimistic that sugar in Guyana could be returned to its former glory. 

Setting the record straight

In the meantime, Jagdeo took the opportunity to respond to talk about the government’s seeming reluctance to support the sugar industry. He revealed that his government, over the past 10 years, pumped US$157 million into the sector to ensure its sustainability.

He said he finds it worrying that the head of the Guyana Agricultural and General Workers Union could tell the international media that the government is not supportive of the sector. 

“How could US$157 million over 10 years not be support?” a puzzled Jagdeo questioned. He believes that some persons have their own motives and do not take into consideration the lives of sugar workers and their families. 

However, the president pointed out that the GAWU is not the problem but a few within the union who are creating a problem. “GAWU has played an important role in the fight for workers’ rights,” he acknowledged, noting that the union has partnered with the PPP in this cause. As such, its useful role as the champion of workers’ causes will never be underestimated by the government, Jagdeo assured. This is why, earlier in the week, he made it clear that the union will never be derecognised under his watch or that of the PPP/ C government. 

He said that he was disappointed that, like at an earlier meeting in November, the head of the sugar union could not make himself available to participate in the meeting.

GAWU has demanded a 15 per cent increase in wages and salaries for 2010 – a request that simply cannot be met by the sugar corporation, which is $7 billion in debt. And it called strikes at a time when the industry was already suffering from many other challenges.

The president revealed he is to meet shortly with GuySuco’s management to work out a solution to the company’s indebtedness. Currently, government has before the National Assembly a request for $2 billion for GuySuCo in the latest supplementary budget, which will come up for debate today. The president is hopeful that the funds will receive approval from the House, in a show of support for the industry. 

A previous financial paper last year requested some $G4 billion to be used for the industry’s survival. 

GuySuCo’s 2010 production is at 220,000 tonnes, the lowest since the PPP took office in 1992.