… workers welcome the Head of State’s intervention
At a meeting with sugar workers yesterday, President Bharrat Jagdeo announced a $720M payout, representing a five per cent one-off
payment increase, for all sugar workers for the year 2010.
The announcement by the Head of State at the Guyana International Conference Centre (GICC), yesterday, was welcomed by the sugar
workers. Jagdeo indicated that the five per cent could be made permanent in 2011, on condition that the sugar production for that year is achieved.
The Head of State said all stakeholders must work to ensure that the sugar industry gets back to where it was, as well as
debunk the lies and clear the misconceptions.
He explained that there are many challenges facing the GuySuCo, primary of which is the 36 per cent price cut by the European
Union (EU), in keeping with rulings by the World Trade Organisation.
This cut is costing GuySuCo $9B each year.
Also the company owes some $7B to suppliers and this, as the Head of State pointed out, has seen some financial institutions
not extending credit facilities to the Corporation.
He noted that the company’s costs have significantly increased from 1993 to now and pointed out that in 1993 the labour cost
for one tonne was $24,000 and is now $71, 364.
However, he stated that different avenues have been targeted to get the industry back on track.
These included addressing complaints about Booker Tate and the company’s former Chief Executive Officer (CEO), Mr. Errol
Hannoman.
However, apart from management issues, the President stated that other problems facing the company include the need for
better quality in the canes that are planted, too much wastage and low turnout – which for 2010 was 49 per cent.
“There is no one single factor,” Jagdeo said.

To this end, the President noted that the payout is an intervention made by his administration, and funded directly by the
government.
GAWU had indicated that it wanted a 15 percent wage hike, but GuySuCo said it could not offer this because of the
current challenges.
Originally, GuySuCo has stated that there would be a five per cent increase if a 290,000 tonnes target was met. This was
further reduced to 272,000 tonnes, with provisions for a two percent if production was over 250 tonnes.
Currently production stands at some 220,000 tonnes, a significant step down from the original target.
Jagdeo said that this year GuySuCo will end at the lowest level since the PPP took office.

Production in 2009 was 234,000 tonnes and 226,000 tonnes in 2008. The company has been struggling to meet the 300,000 tonnes target
and eventually hopes to make it to a 400,000 tonne production level.
Jagdeo pointed to the fact that many other Caribbean countries, including Barbados and Trinidad and Tobago, have exited the
sugar industry, while the current administration remains committed to seeing the industry return to the glory it knew.
However, he stressed his administration’s commitment to the sugar industry.
“Sugar is linked to many other things…we will stay in sugar,” Jagdeo posited.
Largest Investment
In this context, he stated that Guyana has made one of the largest investments, compared to sugar industries in other
territories, to assist the local sugar industry’s comeback.
He pointed out that in the last decade, some US$157M has been invested in the industry.
Also pursued was the strategic plan developed that addressed the Skeldon Factory, and Drainage and Irrigation.
He said there is a number of other initiatives on the cards to impact the livelihood of workers in the industry.

The President also announced that his Government had already provided funding for computer training facilities to be established at
every estate and for training to be provided within catchment areas of those estates as part of the ICT push.

In spite of these advances, the President said the late Dr. Cheddi Jagan’s name is being “prostituted” to justify what he
termed wicked intentions.
He explained that some stakeholders in the industry make comparisons with the industry now and the industry under Jagan’s
regime.
Jagdeo stated that back in the years that the salaries were better, but noted that the sugar levy was in place, production
levels were better, and as such the conditions were better.
“Not one cent has been collected in sugar levy from 1999 to 2010,” he said.
He stated that the misconceptions being rumored can be cleared once one takes a look at “the facts” which show a totally
different picture.
Own Agenda
Jagdeo stressed that GAWU has played an indispensable role in its fight for workers’ rights, but criticized individuals who
want to use the union to pursue their own personal agenda.
He made it clear that the current administration’s commitment to the sugar workers and the industry is clear in its offer of
support through US$157M over the last 10 years.
For 2009 alone, $4B was allocated to the industry and another $2B is currently before the National Assembly.
Recently, GAWU President, Mr. Komal Chand, on a BBC Caribbean news programme, addressed the damage of strike action to the
industry and laid the blame for lack of finances in the industry on the government.
GuySuCo, in a statement, pointed out that contrary to Chand’s assertions, the government, which is the principal shareholder,
has made every effort to assist the industry in overcoming its current challenges.
“From the first indication of the impending economic challenges internationally and the moves by large nations to protect their
markets and industries, it was realised that the direct impact on the relatively small sugar industry in Guyana would be severe and
prolonged, hence numerous interventions were made,” the statement said.
In July 2003, the government successfully piloted legislation in the National Assembly to abolish the Sugar Levy Act. During
this period, GuySuCo was in arrears to the tune of $2.9B which the Government waived, enabling the industry much needed resources to
embark on its plan to modernise its operations in light of the impending challenges.
The administration was also instrumental in arranging concessional financing terms for the establishment of the Skeldon
Modernisation Project in the largest sugar producing region in the country, at a cost of nearly US$200M.
It also invested US$12M in the realisation of project Gold at Enmore in Region Four to spearhead the industry’s focus towards
the more lucrative value added production of its sugar.
The capital expenditure for 2010, which was critical to the industry producing enough canes to push production closer to the
400,000 tonnes mark in the coming years, was only made possible after government provided $4B through a land sale agreement.
The administration has also assisted in a number of other areas, such as financing critical drainage and irrigation projects
and, most recently, providing material support to aid the industry when its cultivation was under threat during the ‘El Nino’
phenomenon from mid 2009 into this year.
The Head of State made it clear that there is a lot of work to do, which must be done through partnerships, to take the sugar
industry back to where it was.
Sugar accounts for approximately 20 per cent of the Gross Domestic Product (GDP) and 40 per cent of agricultural production.
“We have to work together,” Jagdeo posited.