DIVERSIFICATION of the sugar industry, including the Wales Estate, will serve as a catalyst to re-invigorate the West Demerara economy, Government said on Friday as it explained to sugar workers why it was critical for the more than 300 cane harvesters and support staff from Wales to take up employment at the Uitvlugt Estate.

But Government’s plan to transfer the 374 cane harvesters and support staff from the Wales Estate to the Uitvlugt Estate was met with resistance by some workers who have been pressing demands for severance.

The Government, however, is maintaining that the Guyana Sugar Corporation (GUYSUCO) is in no financial position to make an additional payout of $375M in severance. However, in light of threats to legal recourse, the Government said if the matter is won by the Guyana Agricultural and General Workers Union (GAWU) in the courts, it will respect the court’s decision and pay the $375M the best way possible.

The issue surfaced during a meeting at the Wales Community Centre with those affected and Agriculture Minister Noel Holder who had the full support of his Cabinet colleagues – Minister of Public Security, Khemraj Ramjattan; Minister of State, Joseph Harmon; and Minister of Public Telecommunication, Cathy Hughes. GUYSUCO’s Chief Executive Officer (CEO) Errol Hanoman and other officials were also present.

Minister Ramjattan explained that during the period of transition, the cane harvesters were given the option to remain in the industry and be transferred to the Uitvlugt Estate or to be made redundant and be paid their severance packages. Some 389 persons were made redundant, while 428 persons were expected to remain with the Sugar Corporation with the majority (374) expecting to be transferred to the Uitvlugt Estate.

Additionally, the Public Security Minister said GUYSUCO is bankrupt and as such is in no position to make additional payments for severance to those persons who now want to exit the industry. He pointed out that already a sum of $339M has been paid to the workers who were made redundant. Should government pay the $375M, Ramjattan believes that the result would be catastrophic, thereby causing the collapse of the Uitvlugt Estate.

“At this stage, there are three reasons: the option that you took earlier in the transition, the one that we don’t have the money, the $375M to pay and thirdly, the fact that it would necessarily mean a collapse of Uitvlugt if the workers don’t go there,” Minister Ramjattan summarised.

However, some of the workers present were not in agreement. In an emotionally charged atmosphere, the workers argued that of the lot, only five persons had opted to remain within the industry, while the majority opted to take their severance. Pointing out that it was a bread- and-butter issue, the workers pleaded with the Government ministers to have the money paid.

One of the cane harvesters posited that the transfer from Wales to Uitvlugt would put a great strain on the workers, while explaining that they would have to travel 22 miles to reach the Uitvlugt Estate and another mile to reach the back lands.

Another harvester recalled that while in opposition, Minister Ramjattan defended more than 300 sugar cane workers of the Diamond Sugar Estate who before the closure of a legal battle had gotten their severance pay. Some $209M was paid to the 381 affected sugar workers in 2011. The sugar worker said now that the situation is reversed, action is being withheld on the part of the administration.

“This is the Government we vote for, why y’all doing this to we, we got families to feed,” another cane harvester shouted.

In an attempt to quell the situation, Ramjattan said that at that time GUYSUCO had the money to pay the sugar workers. It was explained too that in the case of Diamond, the workers were made redundant by GUYSUCO and as such were required to have their severance paid. He noted too that since taking office in 2015, the Government has pumped $32B into the ailing sugar industry.

Meanwhile, the harvester said he was among the group that opted to be transferred, however, when he went to the Uitvlugt Estate, he was made to do menial tasks. The harvester’s claim along with that of the remaining cane cutters who had opted to receive their severance pay will be investigated Minister Ramjattan assured, while noting that Government was unaware of some of the issues raised by the sugar workers.

The issues are to be deliberated at the level of cabinet, while stating that “nothing is written in stone.”

Diversification plans
Meanwhile, subject Minister Noel Holder in laying out the diversification programme, announced that an agreement will soon be signed between Guysuco and the Guyana Rice Development Board (GRDB), in which the GRDB would fund a seed paddy project.

“As soon as the land dries out over the next few days, land preparation will commence. Contrary to what is being said, the country is in great need for good quality seed paddy and we are looking to Guysuco to produce this,” Holder said. He also disclosed that plans are in the pipeline for an aquaculture pilot project which will come on stream by April, as well as a number of viable non-sugarcane crops and livestock activities.

Holder also announced that land would be leased to employees by October, 2017 to shift them into becoming farmers “to be more in control of your destiny, to give you a greater stake in the wealth to be generated in the community.” He said a European Union-funded study would shortly be undertaken. The Agriculture Minister said said that 60 percent of the canes that previously went to the Wales sugar factory will now be milled at Uitvlugt.

“These farms are in fact closer to the Uitvlugt factory and the farmers would benefit from reduced transportation cost as well as better recoveries,” Holder said, noting that bad weather has been hampering the construction of an all-weather road and bridges from Wales to Uitvlugt.

Additionally, the Agriculture Minister said land closer to Uitvlugt would be made available to farmers who would like remain in cane farming and told the gathering that 14 farmers have already been awarded leased lands close to Uitvlugt and other applications are being evaluated. The Agriculture Minister said farmers who opt to remain at Wales, where they have their farms, but find it uneconomical to remain in cane would be encouraged to diversify in line with the diversification plans for Wales.

Over-reliance
Meanwhile, Holder said the decision to remove the over-reliance of the community on sugar should have been taken a long time ago.

“The sugar industry has been struggling for some years and the recession in the West Demerara economy has been a gradual process,” he posited. He said the West Demerara economy was already depressed when the Government took office. However, Holder noted that diversification of the economy will address many of the problems facing the industry and the people who benefit from it.

“An important part of our strategy to make our people more resilient and independent is to lease land to employees to transition them into becoming farmers, to be more in control of your destiny, to give you a greater stake in the wealth to be generated in the community,” Minister Holder explained. The Agriculture Minister said while it will take some time, Government is hoping to conclude certain aspects of its diversification plan by October 2017.

Minister Holder explained that 1118 workers attached to the Wales estate stand to be affected by the transition process. However 675 persons are to remain employed with the estate, 374 of whom are required to complement cane harvesting at Uitvlugt estate.

“Sadly, many of these persons have been misled to take severance rather than take up employment at Uitvlugt estate. Not going to Uitvlugt would put Uitvlugt’s survival at serious risk. Fifty four have been transferred to other estates and unfortunately, 389 persons have been made redundant,” Minister Holder said.

The final redundancy cheques were to have been issued Friday afternoon, Minister Holder said.