…company says constrained by low worker turnout
THE Guyana Agriculture and General Workers Union yesterday called an industry-wide strike, effectively shutting down operations at all eight of the Guyana Sugar Corporation’s estates and further threatening the prospects for achieving this year’s already downscaled production target of 264,000 tonnes. But the workers are to return to work today, in the hope that the engagement between GAWU and the Corporation continues in earnest.
According to a press release from the union, the thousands of striking workers are insisting that Guysuco indicate its intention in terms of approving a 15 percent increase in wages and salaries for 2010.
“Despite a number of meetings between the Corporation and the Union, including discussions with the Chief Executive Officer (ag) of the Corporation and the Chairman of Guysuco’s Board, the Corporation continues to avoid reference to any upward adjustment of its remuneration,” the statement from the union said yesterday.
It said that the Corporation’s current predicament of securing under 60 percent attendance of cane cutters on any working day to harvest canes is a result of the continuous falling purchasing power of the workers “evidenced by inflation rates overtaking real increase in pay, in recent years.”
GAWU said that over the past few years, before October or the first week of October, the Corporation had been able to indicate a percentage of pay hike.
“The Corporation’s inference at last Friday’s meeting between the two parties that production of 264,000 tonnes sugar would have to precede an offer by the Corporation is unacceptable,” GAWU said in its release.
It said that the corporation’s representative informed the Union’s negotiators that at this time the Corporation is not too clear that 264,000 tonnes could be achieved for 2010, and on that basis it is not in a position to make an offer. “The Union however cannot agree to having the wage increase determined at the conclusion of the year’s production. This is not normal Union-Company procedure,” GAWU said.
GAWU said that it is seeking to engage in negotiations with the Corporation in earnest and that the sugar workers who picketed many Managers’ Offices across the industry yesterday will return to work today.
“The Union wants the Corporation to stop the dilly-dallying stance it has unfortunately adopted in this negotiation and ensure that there is a conducive atmosphere to capitalize on the current favourable weather conditions for cane harvesting. The maximum production could be ensured in a climate of industrial compromise and peace,” GAWU said.
Meanwhile, in a press release, the Guyana Sugar Corporation expressed its disappointment at the decision by workers represented by GAWU to engage in an industry-wide strike.
The Corporation is however contending that any offer for wages and salaries increase for this year must be contingent on the industry at least achieving the revised target of 264,000 tonnes of sugar.
“It is also important to note that the week ending October 16th 2010 was the only week the Corporation achieved 9,800 tonnes of sugar; and with ten weeks remaining for the second crop, the industry will have to produce in excess of 10,000 tonnes weekly to achieve our 2010 target, weather permitting,” the release from Guysuco said.
“With this in mind, the Corporation has informed GAWU that unless it is encouraged by increased workers turnout and productivity, it would not be in a position to make any reasonable offer for wages and salaries increases,” the release said.
Guysuco has acknowledged that currently the workers turnout figures and production are far below their targets. It said that the highest attendance for the current crop was recorded at 68 percent at Blairmont and the lowest of 43 percent at Skeldon, with an industry average of 57 percent.
“Low workers turnout has a direct consequence on grinding. The highest average figure recorded for grinding at the factories per week is 130 hours at Rose Hall and Blairmont, with the lowest of 66 hours recorded at LBI. The average recorded across the industry is 103 hours,” Guysuco said.
Guysuco said that if the industry is to achieve a minimum of 10,000 tonnes of sugar per week for the remainder of the crop, the factories will have to grind at least 135 hours per week.
“On average, factories across the industry have recorded weekly out-of-cane periods amounting to one and a quarter day. During this period, 33,000 tonnes of cane could have been processed producing approximately 2,800 tonnes of sugar. This would have a significant negative impact on the Corporation’s cash-flows and would severely affect its ability to meet any wage increase,” the Corporation said.
“If this situation continues, then it means that 330,000 tonnes of canes would not be crushed, resulting in 29,000 tonnes of sugar not being made,” Guysuco said.
The Corporation is willing to have the unions audit its financial statements to verify that the financial position as put forward by the Corporation supports its stance that it cannot meet the union’s demands.
On Tuesday October 12, 2010, Chairman of the GuySuCo Board of Directors, Dr. Nanda Gopaul, along with other senior officials, met with representatives of both GAWU and NAACIE to discuss the issues mentioned above and they were urged to encourage the harvesters to improve on their attendance.
“Given the existing dry weather, the industry is losing very valuable opportunity time for harvesting. The strike will also have a very deleterious effect on tillage and replanting which will affect production next year,” said GuySuCo.
It added that yesterday’s strike action will have a knock-on effect on production today, and will result in the industry losing the opportunity to produce approximately 1,600 tonnes of sugar, which may or may not be made up for later in the crop.