THE government has once again demonstrated its pro-labour and humanitarian stance with the announcement by President Bharrat Jagdeo of a five percent one-off payment for sugar workers.
The Guyana Sugar Corporation stated earlier this week that it could not pay any increase because it did not meet its sugar production target following strikes and other factors.
This excellent gesture by the government dispels the notion that it is insensitive to the plight of sugar workers.
All Guyana and sugar workers, in particular, certainly will welcome this move which could help dampen the unfortunate sparks that have been flying between the management of the sugar corporation and the main sugar union, GAWU.
Another positive development is that the President has indicated that the five percent payout could become permanent in 2011 if production is significantly increased.
The sugar industry is facing many challenges and is going through tough times, but it would be unfair to lay blame only at the feet of GAWU and the workers which some are inclined to do.
As the President correctly pointed out, the primary challenge is the 36 per cent price cut by the European Union (EU), in keeping with rulings by the World Trade Organisation. This cut means GUYSUCO has lost $9B annually.
The company also 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, pointing 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.
Apart from management issues, the President said other problems facing the company include the need for better quality in canes that are planted, too much wastage and low labour turnout – which for 2010 was 49 per cent.
“There is no one single factor,” Mr. Jagdeo said.
From the facts outlined by the President, it is clear that the problems of the industry are much more than simply low turnout by workers.
With regard to the latter, it would be useful for GUYSUCO to get down to the real cause for low turnout by workers to be in a better position to provide an appropriate solution.
It is true that because of the corporation’s poor financial state it cannot afford to pay increases in wages and therefore may be caught in the unenviable situation of which comes first – chicken or the egg.
To motivate workers it needs to pay better wages and salaries, which it cannot afford, and if it does not pay increased remuneration the industry will suffer because production will be adversely affected by low turnout which will make it more difficult to pay increases.
In such a situation, alternative ways of rewarding the workers should be explored because the industry is much too big to fall.