…may face penalties for failing to meet deliveries by year-end
The Guyana Sugar Corporation yesterday announced that in response to a nation-wide strike called by the Guyana Agricultural and General Workers Union (GAWU), it will be ceasing all operations, except in the case of essential ones. “The Guyana Sugar Corporation Inc. is extremely surprised, disappointed and disheartened at the decision by the Guyana Agricultural and General Workers Union (GAWU) to have its members stage yet another industry-wide strike, commencing from today (Friday), until Thursday, November 25, 2010,” the corporation said in a press release.
“The corporation views this move as a most callous and blatant disregard for the current state of the sugar industry. Such a move will undoubtedly question how serious the union, and by extension its members are in saving the industry which has provided for them over the years,” the statement said.
According to the statement, GuySuCo is left to ponder if there have been deliberate acts to inflict as much harm to “an already ailing industry, as when the corporation concluded wages talks yesterday (Thursday) with the union and its representatives, there was no official notification or intimation that industrial action was either planned or contemplated.”
The corporation said that yesterday morning, all estates reported an almost total shutdown and it was confirmed by the union that the strike will last another six days.
“As a result of the union failing to inform the corporation of such a strike, approximately 2,000 punts of canes or nearly 12,000 tonnes canes that could have been processed to make 1,000 tonnes sugar were burnt yesterday, and are now being left to perish in the fields,” the release said.
The corporation said that had it been informed of the strike, burning could have been avoided. “The 1,000 tonnes sugar could have generated revenue of $115M, which is closely equivalent to one percent increase in wages,” the release said.
It said that this incident “is most unfortunate”, at a time when the corporation is making all efforts to turn the industry around by increasing sugar production through increased cane supply.
“It is most disappointing that these canes that were nurtured at great expense and attention are now being left to deteriorate,” the corporation said in the release.
The corporation said it has noted GAWU’s sole focus “this time around” is on the Skeldon factory and the technical challenges which have affected its operations.
The Guyana Agricultural and General Workers Union (GAWU) suggested that GuySuCo shut down the operations at the new Skeldon factory until the kinks could be ironed out.
A press release from GAWU said that just over a week ago, it had cause to draw to the attention of the nation, “the serious state of affairs at the ultra-modern Skeldon sugar factory.” The release said that functioning of the factory which is beset by a number of defects has worsened over the past few days.
“Its performance has diminished significantly from crushing about 210 tonnes cane per hour to between 90 and 120 tonnes, owing to severely worn-out hammers and leaking boiler tubes. Repair works on the lone boiler and the hammers commenced [Thursday] morning at about 06:00h and [were] expected to conclude at 18:00h [the same] afternoon,” GAWU said in the release.
GuySuCo in turn said, “Surely, the union must be aware that the corporation will in no way benefit from these challenges and has in fact made every effort to rectify them in the shortest possible time. This is public knowledge and it is clear, based on the detailed description of the problems at Skeldon revealed by GAWU, that the union is fully aware of these issues. With this in mind, the corporation is astonished that the union continues to call on it to come clean on the problems at the factory.”
The corporation said during this time, it has managed to service its markets and creditors, meet its weekly wage bill which amounts to $300M on average, focus on the challenges at the Skeldon factory, continue to invest in its fields and other factories to improve production, increase its mechanization fleet, increase efficiency, ensure that the workers employment are secured, focus on the daily challenges on each estate, including numerous strikes, try to work around as best as possible the effects of both the dry (El Nino) and wet weather (La Nina) conditions, and the results are that there is enough canes in the fields to even surpass the revised target of 264,000 tonnes.
“GuySuCo has managed this in light of constant criticisms from several quarters, but nevertheless remains committed and undaunted in its effort to ensure the future of the industry is secured for our workers and other stakeholders,” the statement said.
According to GuySuCo, it is a difficult reality for the corporation when, despite its numerous strikes and the clear indication of how they contribute to negatively affect production, the union and workers resolutely refuse to accept any responsibility for the consequential end result.
“The only option available to the corporation is to once again implore the union and our workers to assess the situation in earnest as the current strike will further deteriorate an already fragile and precarious financial situation, and erode whatever affordability there may be in the corporation’s ability to increase wages and salaries, since its affordability is contingent on achieving at least 250,000 tonnes sugar,” the corporation said.
“The corporation has a contractual marketing commitment to the EU and CARICOM to deliver sugar to these markets not later than 31st December this year, failing which severe penalties will be imposed,” the release from GuySuCo said. 
“Whilst this strike is in progress, the corporation will be incurring heavy overhead expenses in some areas, without any revenue being generated, and as a consequence, it may decide to temporarily cease all operations, except in cases of essential services, until the situation becomes normal,” GuySuCo said.