By Svetlana Marshall

Amidst growing criticisms of the merger of the LBI and Enmore estates, the Guyana Sugar Corporation (GuySuCo) has fired back at the Guyana Agricultural and General Workers Union (GAWU) and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE), saying that the unions in 2011 had agreed to the integration of the East Demerara Estates.During a meeting with GuySuCo on April 12, the unions were informed of the corporation’s decision to have the operations of the field workshop, mill dock, field lab, stores, and administrative offices that are based at La Bon Intention (LBI) Estate merged with similar operations at Enmore Estate during this year.

In issuing its objection, the unions alleged that the closure of the LBI operations would result in over 800 workers being deployed to the Enmore Estate – a cause for concern since they may not be permanently employed, as is the case at LBI.

GuySuCo, Chief Executive Officer (CEO), Errol Hanoman, Finance Director Paul Bhim and the Chief Factory Manager Deodat Sukhu appeared on the National Communications Network (NCN) over the weekend to set the record straight.

In expressing the corporation’s disappointment at the position taken by GAWU and NAACIE, Hanoman said the unions had played a critical role in the decision-making process, back in 2011, which led to the closure of the LBI factory.

However, he said, the integration of the two estates was done in a “haphazard manner”, and as such was not properly implemented.
“We wish to emphasise that GAWU and NAACIE were fully involved in these activities, and must have been aware that the process will have to be completed; so why the objection now? The unions should have clamoured for the integration to be completed properly since 2011, as this would have reduced cost and improved the chances of securing employment,” Hanoman said. “So, apart from closing the LBI factory, nothing else was done.”

The CEO said that to make matters worse, the Enmore factory manning levels were inflated to accommodate the LBI factory workers, resulting in the operations of the Enmore Estate becoming even more uneconomical.

“Reducing cost and improving cost effectiveness appeared not to have entered the equation,” he posited, noting that there are now two of everything – two mill dock operations, two field operations and two field laboratories. Additionally, there is a managerial team based at LBI and another at Enmore – a situation Hanoman considers to be totally unacceptable, and reducing the effectiveness of the management process.

NOT TRUE
Alluding to concerns raised over the transfer of workers from LBI to Enmore Estate, Hanoman contended that GAWU and NAACIE have misled the nation into believing that more than 800 workers would be displaced.

It was explained that the majority of the 800 workers already work at both the LBI and Enmore Estates.

“They’re doing crop…and harvesting, and this would not change. Everyone must appreciate that is one estate, and has been since the close of the LBI factory in 2011.”

Hanoman said it is important to note that there is still a human resource deficit, and he pointed out that the average attendance in the second crop of 2015 was 63 per cent. However, this fell to 49 per cent by the first crop of 2016.

“So one may argue that the East Demerara Estates (EDE) are still very short of labour. So what are the unions talking about?”

Nevertheless, he made it clear that it is the corporation’s vision to transform the East Demerara Estates into a viable unit, but emphasised the need for the process, which commenced in 2011, to be completed.

The Chief Factory Manager said he was a part of the negotiating teams, which included GuySuCo Head Office, the management of the East Demerara Estates, GAWU and NAACIE. He also noted that even workers were consulted during a period of one week.

“It was frankly a meeting that had to do with the integration of the factory, and subsequently the integration of the operation, because one still recognises that a mill dock operation is regulated with the factory; and having had the closure of the LBI factory, the mill dock operation that is attached to the LBI factory will have to be merged with the operations that (are) attached to the Enmore factory. A fact that the union accepted,” Sukhu explained.

The Financial Director said the unions not only agreed to the merger, but understood at that time that the LBI Estate was operating at a financial loss because it was “woefully underutilised”.

“The turnout of harvesters at LBI was so poor that the factory was crushing canes every two days,” Bhim pointed out.

It was explained that the corporation had designated 130 hours per week for grinding, but was able to achieve only 80 hours.
“Now, if you’re going to be crushing cane for literally half the time you’re supposed to be, you are going to be incurring cost at the same time,” he said, adding that a decision was taken to close the LBI factory down and transport the cane to the Enmore Factory, which was underutilised.