Govt will not block pay increases

– Persaud Tells Sugar Workers

Agriculture Minister Robert Persaud has assured sugar workers at the Skeldon factory that government will never block pay increases or other incentives to them. He implored the workers to get back to the fields and help the ailing sugar industry return to profitability.

He also assured the management of the Guyana Sugar Corporation (GuySuCo) that the administration will help it pay its bills, but he urged a swift resolution of the industrial dispute over wage increases. GuySuCo and the unions representing workers – the Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) – have been deadlocked over wage increases.

Addressing workers at a meeting at the Skeldon factory on Monday, Persaud dispelled rumours that government had a sinister plan to deny the workers the increases they are currently demanding. He noted that government’s commitment to the sugar industry cannot be questioned, since failure of the industry reflects on the outlook of the entire nation. “It would only be a stupid and crass government to limit its own economic progress…I want to state clearly that the government would not block any increase or any incentive,” he declared.

He noted that government is considering helping GuySuCo to pay its bills in a timely manner, since the company has seven billion dollars in debt. As the canes cannot be converted to sugar in an appropriate time, the company’s cash flow has been severely interrupted. Further stating government’s commitment, Persaud reminded workers that the government released $4.5B billion to the industry last year. Some $1.5 billion of that went to servicing machines at the new factory at Skeldon, while the rest went into the capital projects of the company.

Push to resolve unrest

Meanwhile, GuySuCo’s Chief Executive Officer, Paul Bhim, said the company is pushing to solve the current industrial relations problem this week. The strike has, so far, crippled sugar production in the aftermath of a week-long nationwide strike over wage increases. 

During his exchange with workers, Bhim explained that payments were made to workers late Friday after a major buyer from England offered to help, having learnt of the predicament of the industry. The buyer offered to make an advance on a shipment of sugar bound for the UK, and the advance was accepted by GuySuCo and used to pay wages last week.

Speaking with Guyana Times International shortly after the meeting with workers, Bhim disclosed that a swift move would be made this week to return normalcy to the industry. “We want to get this sorted out…we know it’s quite important …If it’s not sorted out, we are going to be plagued with problems in terms of strikes,” Bhim said. He added that government had requested that the current impasse be ironed out as soon as possible.

“We have the canes in the ground…we have to get them out…we need the cooperation of the workers, so we are going to move swiftly this week to try and get this issue resolved.” The industry’s chief executive stated that, after the seven-day strike which ended last Friday, turnout in the fields has been very low. This has forced the factories across the country to crush canes and then stop, resulting in very poor production, which is more pronounced in the Demerara estates, due to wet conditions.

Since the strike, worker turnout has averaged between 32 and 33 per cent in Demerara. In Berbice, the turnout has been more encouraging, with about 42 to 43 per cent of harvesters showing up for work. On Monday, the average turnout across the industry was about 45 per cent, Bhim stated, which is a very encouraging sign. 

Rose Hall estate in Canje has recorded the highest turnout at 58 per cent, with Blairmont registering 52 per cent turnout, while Albion and Skeldon are both below that figure. At present, the company is projecting a week-and-a half break in the current crop, starting the week after Christmas and lasting until the new year. The workers have also been reminded that if production surpasses the 300,000-tonne mark, the company would be generating enough cash to sustain employees and pay decent wage increases, apart from paying suppliers and investing in the industry.