The controversy surrounding the Russian-owned Bauxite Company of Guyana Incorporated has reached a deadlock and the firm has suspended its entire operations in Guyana and dismissed over 300 workers.
On Monday, Government Minister Amna Ally joined Chief Labour Officer Charles Ogle, to engage officials of RUSAL – a company which holds some 90 per cent stakes in the Bauxite Company of Guyana Incorporated (BCGI).
In recent times, the company has been facing some difficulties, which the meeting was called to iron out these issues. However, during these discussions, it was learnt that the company had already taken the decision to terminate some 326 workers and close its operations before entering talks with the Ministry.
While the company contended that low production and fuel issues triggered the move to make this decision, Minister Ally contended that workers should not be treated this way.
However, when the company had initially announced its decision to terminate 142 workers, it stated that it was experiencing difficulties after Government ended its duty-free arrangement for its fuel. Following the decision to lay-off employees, workers and residents blocked the section of the Berbice River utilised by the Aroaima-based company. This further compounded the company’s problems.
A letter from the company dated January 29, 2020, which was seen by Guyana Times, indicated that the company was forced to further reduce operations and to lay-off employees owing to adverse operating circumstances including shipment interruption because of the blockage of the Berbice River.
RUSAL Representative Vladimir Permyakov sought to explain the rationale behind these recent events, claiming that aluminium prices have dropped on the world market. Added to that, there were claims that the Guyana Revenue Authority (GRA) refused to grant duty-free concessions for fuel, which added to their setbacks.
However, Ally insisted that the company should have taken steps to engage the Maritime Administration (MARAD) to resolve the issue. Amid the heated exchanges with the company’s representatives, she said that Guyana’s laws call for a notification to the Labour Department should any company proceed to terminate the services of its workers.
Another meeting is expected to convene soon to further discuss the issue and decide the way forward.
Last Wednesday, the Guyana Bauxite and General Workers Union, in a statement to the media, stated that the decision to lay off the workers is in contravention of the Termination of Employment and Severance Pay Act.
The dispute started on January 23, when the company announced its decision to lay off workers after Government ended its duty-free importation of fuel arrangement.
BCGI had dismissed 61 workers in February 2019 after they protested for better working conditions and wages. After weeks of deliberations, they were reinstated.
In January, the GB&GWU declared that it had lost all confidence in Junior Social Protection Minister Keith Scott, who has responsibility for labour.
