— as government moves to pay severance package to sugar workers

FINANCE Minister Winston Jordan has said that government will have to cut several budgetary programmes to facilitate payment of severance packages to over 400 retrenched sugar workers as it takes steps to consolidate the operations of GuySuCo.
In a statement to the National Assembly on Tuesday through Prime Minister Moses Nagamootoo, President David Granger said $2B will be paid to the workers this month-end, while the remainder will be paid in the second half of the year.

Jordan said the administration will ensure all workers get their severance, but noted that it is a case of where the government has to find resources to make the total payment of $5B.
“It was a sudden and large amount and we had to find creative ways to do this… we will have to re-examine our 2018 budget which will very well result in cuts to programmes, so as to release money to pay the severances,” he said.
This is why the severance is being paid in parts, he said.

“We don’t know how these ministries programmes would be affected, but in the interest of human dignity and the workers we are attempting to make the first payment at the end of January,” the finance minister said.

Minister of State Joseph Harmon had told the National Assembly during the consideration of estimates and revenues in December that government has budgeted for the payment of severance to the retrenched sugar workers.
Though the amount reportedly budgeted by the administration was not disclosed, Harmon had assured that there was a “huge chunk” of money allocated in the 2018 National Budget for that purpose.

He assured that the workers who have been laid off by GuySuCo will receive severance.
“There is a huge chunk of money in there [budget] for severance,” he declared, while members of the governing side of the House shouted “we are a caring government”.
The minister of state had criticised the parliamentary opposition for trying to tell the public and in particular sugar workers that the APNU+AFC coalition government is uncaring.
That is far from the truth, he said.

“Budget 2018 contains a provision to offset severance pay for GuySuCo workers. The opposition must communicate this to workers,” the minister of state said.
Meanwhile, subject Minister Noel Holder reminded that it was only when the coalition government took office in 2015 that a true understanding of the state of the sugar industry became apparent.

Government in 2015 bailed the sugar industry out with $16B.
He told reporters that government tried to bring the situation under control, noting that there have been a number of downsizings of sugar estates.

“It obviously had to be rationalised, we couldn’t continue this way,” stated Holder on Wednesday in the corridors of Parliament Buildings.
In rationalising the industry, Government has been able to keep 11,000 workers involved and find placements for many of the remainder through job enhancement programmes, said Holder.

“We think we got it to the right size, we think the markets we’ve got, the 147,000 tonnes will largely be supplied to the CARICOM market, which is a high-priced market and we think with further improvements as we go along with co-generation and going back to ‘plantation white sugar’, the sugar industry will rebound much stronger than before,” Holder continued.

Similarly, Business Minister Dominic Gaskin said it is impossible for the administration to continue bailing the sugar industry out. It is not a profitable exercise, he said, noting that common sense must prevail.

“It cannot afford to year after year subsidise an entity that is not profitable and sustainable and that is making increasingly growing demands for government support,” stated Gaskin
The decision, he said, had to be made and stressed that it was not an easy decision.
“I don’t think government is completely unconcerned about the welfare of the workers… that is a total farce… severance pay is an entitlement and our government will ensure the workers get their entitlement.”

Many agencies are engaging the workers with a view to providing support, including the Small Business Bureau, which has been training some 150 GuySuCo workers to open and manage their own businesses.
T

he minister of business also noted that more training is on the cards for the affected workers.
“Government is extremely concerned about the welfare of the workers, but our government will not shy away from tough decisions,” Gaskin reiterated.