SINCE its nationalisation, the sugar industry and the entity the Guyana Sugar Corporation (GUYSUCO) which manages and controls it have become more bureaucratised, resembling a government department. The major characteristic of this is that it increasingly depends on State budgetary support due to increasing losses and declining efficiency.

This creeping movement towards bureaucratisation and becoming a government department has resulted in the gradual disappearance of free-enterprise attitudes and entrepreneurship. The profit motive is therefore beginning to fade. With these tendencies, the industry will eventually collapse since the State cannot continue to provide consistent and growing subventions.

To save the industry, GUYSUCO and the trade unions which are part of the industry need to avoid the disastrous socio-economic disruption which would occur with the collapse or demise of the industry. This implies that the industry and GUYSUCO have got to become independent again as a free-enterprise and entrepreneurial entity.

Our initial proposal in beginning the process of the reversal of the Industry, to a free-market entrepreneurial entity is a very modest one and starts from the bottom where disruption and shocks would be least and where success is assured once the will to achieve is stimulated.

A. Divide the industry into two segments so that each would enjoy the benefits of specialisation and optimise performance. One segment would have the industry’s factories remaining under GuySuCo’s control and management. The other segment is cane cultivation and this would be the responsibility of the industry’s thousands of field workers.

B.    The field workers would group themselves into several Productivity Units and each Productivity Unit will form themselves into smaller self-managed work teams which would consist of a number of field workers who could be mobilised to work cooperatively together. They would agree on the quantum of acreage they are able to work successfully within the specified time cycles of the Industry. The members will comprise the tillers, planters, weeders, fertilizers and harvesters, and will include supervisors, foremen and charge-hands, who are experienced in the production of sugar cane.

C. If a member of the unit does not perform or is a source of conflict to the unit, that person must immediately go. The narrow job specialisation which obtains in the Industry currently must be replaced by the work fluidity of the private cane-farmer since the goal would be high production, high productivity and high incomes

D. GuySuCo will provide the Productivity Units with the necessary inputs; such inputs will include wages, fertilizer, herbicides, etc. Strict accountability has to be kept of all GuySuCo’s inputs since the Productivity Units will have full responsibility for the “payback”. Guysuco’s imputs should be sourced at the most economic cost.

E.    The Productivity Units would be responsible for the production of canes and for handing them over to GuySuCo.  Guysuco’s costs of inputs would be deducted from the revenues of the sugar produced and the profits will be distributed to the members of the respective unit

F. Transportation should form another “Unit” and would service the various Productivity Units in transporting the cane to the factory, and also the personnel and inputs. This unit must be very efficient as lapses would incur losses which will be reflected in the profit of the Productivity Units

G.    The factories would remain under the direct control and management of GUYSUCO. It is expected that the factories would be efficient as any inefficiency would result in losses of profits to the Productivity Units.

H.    The development of a successful model for GuySuCo’s field operations would require a commitment to improve the social profile of sugar workers. The personal growth of each worker must be enhanced through training to ensure they develop their ability to self-manage the production of cane.

This is the bare outline of the scheme, but it has to be refined by the Unions/Workers and GUYSUCO themselves.

Among the advantages of the “Productivity Units” are: (i) It would be returning the Industry to an industrial/commercial entity where profitability is supreme. (ii) The workers would receive their regular wages, incomes from the sale of cane/sugar after deductions for inputs and share from the profits. (iii) Disputes between management and trade unions would be greatly reduced. (iv) The Industry would have a new lease of life. (v) Productivity Units would act as a catalyst to be replicated in the other segments of the industry moving them “towards a more free-enterprise entrepreneurial culture”. (vi)Management in particular would become more responsive to the needs and aspirations of the workers and would be able to shed non-productive deadwood, work optimally, return the industry to profitability and could then be able to contribute to the government instead of receiving subventions.

The involvement of the respective sugar unions is paramount for ensuring a successful transformation.

The unions and unions personnel therefore, must play a more creative, pro-active, exciting and positive role when the proposed new model is put into effect. Their functions will resemble that of the “Rice Producers Association” in that they will negotiate prices for cane/sugar instead of wages for workers; ensure inputs are provided on time at the right prices; develop the relationship with management from being confrontational to harmonising; mediate differences among P.U. members; oversee the efficiency of their operations and ensure that GUYSUCO and NIS honour their obligations to the sugar workers
A summary of the activities of the three divisions of the Industry is given under each division below, but is not exhaustive; thus, other activities will be added , as intensive and detailed discussions with management, union and “Productivity Units” take place. The tables should be read vertically i.e. downwards.

This Proposal for Productivity-Units for the field workers is designed to achieve fuller production and productivity, to remove tensions and alienation between management and field workers, and to have field workers sharing in the profits.
What are the Benefits?

Guysuco
i)    Traditionally adverse labour relations would be replaced by greater cooperation, trust and respect between field workers and Guysuco
ii)    There would be a greater reliability and a dependable supply of cane.  A climate of healthy labour relations would result in greater efficiency, productivity and production leading to increased profits.
iii)    Successful Productivity Units could help in cost reduction and production of a better quality cane.
iv)    There would be greater control of losses, including losses from stealing.
v)    The Productivity Units would create a more self-reliant and committed worker with an enabling work ethic leading to enterprising and entrepreneurial culture.  Alienation between worker and employer and worker and working tasks would be diminished.
vi)    A general strengthening of our economy
vii)    Greater Stability within our society

Productivity Units and Field Workers:
i)    Greater job security
ii)    The worker in the Productivity Unit would have  better remuneration than at present because of higher production and productivity and sharing in the profits of the Industry.
iii)    Productivity Units would move “towards a more enterprising and entrepreneurial culture.
iv)    Continuous improvement-confidence, discipline
v)    Skill development to manage performance
vi)    Having a unified, focused concern on the needs of PU members
vii)    Sustaining members relationship over the long term
viii)    There are other spin-offs such as greater cohesion among workers; greater self-respect; being easily recognised for his achievements; more conscious of his identity and importance; developing excellence as an ethic; greater possibilities of saving; exiting the inbuilt feeling from his psyche that as a worker, he is exploited.
ix)    This new method of work and organisation would free the field worker, in mind and body, from the remnants of the oppression of slavery and indenture.

The Trade Unions
i)    Greater industrial peace and harmony in the industry.
ii)    Union dues would be paid with greater ease as the workers would be earning more.
iii)    The fears that there could be a diminution of the industry or even the closure of estates would be dispelled.
iv)    Since traditionally adverse tensions between employer and employee would be greatly diminished, the unions would have more time and capability of addressing workers’ other concerns such as education and social welfare.
v)    For centuries, union leaders have been complaining about the “shackles of exploitation” and “the need to break those shackles” now with the advent of the Productivity Units, the workers would be free from exploitation, the shackles broken and our centuries-old struggle would end.
vi)    A general strengthening of our economy
vii)    Greater stability within our society

Implementation
Agree on a pilot project and the appointment of  Guysuco Officers who would be responsible for implementing  the project; they should work hand-in-hand with the unions for a quick start.

We would suggest that the following steps be taken:
a)    Have the Guysuco Officers along with  union representatives begin plans for the various parameters.
b)    Start educating the workers as to the methodology of the project and its benefits.
c)    Identify the leadership of Productivity Units and Self -Managed Work Teams, land and date of commencement for the pilot project.
d)    Meetings/workshops,  including supervisory foremen and charge-hands to develop rules and work programmes
e)    Group formation:-PU coordinators; SMWT Leaders
f)    Land/field allocation
g)    PU/SMWT-undertaking responsibility; coordinating; executing task; resolving problems
h)    Training: -Coordinators/Leaders :–leadership; team management; planning and execution
i)    Checks and balances; quality of work; deliver quality cane

Supervisor- The supervisor’s role changes from giving day-to-day instructions to team members to playing a larger role in strategic planning and co-ordination.

The supervisor’s role during transition is to help the team learn new skills and become self-sufficient. The supervisor, then, takes a more  oversight  and coordinating responsibility.

To get out of the state of inertia and ensure internal coherence, transparency, corporate discipline and profitability – GUYSUCO should never lose sight of the following areas:

1) Factory    a) Employ systems to increase efficiency/Improve production methods/Schedule on-the-job skills training.
b) Source Technology: to improve line production /increase cane juice – sugar content
c)  Energy efficiency – utilization of waste products
d) Introduce Production Incentive Programmes

2) Agri Inputs – Research to increase juice/glucose content in cane.
3) Procurement- research to ensure high-quality inputs at best prices.
4) Fiduciaries/Liquidity-Issue 5/10 year bonds to access working capital instead of high interest rates.
5) Diversification     a) Packaging – supply several qualities of sugar, price range and sizes of packages.
b) Consider production of: Syrup, molasses, organic sugar.
c) Joint venture – Bio fuel.
d) Explore the fallowed sugar cane fields for aquaculture.
6) Marketing – Several qualities of sugar, price range and sizes of packages.
7) Research – relevant info to access the best sugar cane glucose content/management      systems/training programmes/qualified proactive personnel.
8) Management- ensure high-quality options in policies and programmes developed and efficiently integrated and managed/engage proactive leaders/ensure strict accountability/optimise the utilisation of the human resources and assets/sustain continuous innovation and transformation/commit to high ethical and moral values/give more autonomy to the estates management and reserve a percentage of the profits for social and economic infrastructure and activities.

The 350-year old Guyana sugar industry which is the foundation of our country has all the characteristics of a competitive and profitable industry. GUYSUCO has accumulated a substantial stock of assets and employs an enormous amount of human resources which are now under-productive. Therefore, it is essential for the well-being of the workers and the nation that the sugar industry survives and become profitable. In other parts of the Caribbean, they have closed their sugar industries with little regard for their workers’ welfare. This should never happen in Guyana and our sugar industry could again enter a renewed path of profitability with the workers’ devotion and involvement.