…to help pay sugar workers’ severance

GOVERNMENT is expected to table today in the National Assembly its first financial paper for the year seeking some $1.7B in supplementary funds to meet expenditure for the payment of severance to laid-off sugar workers.

The administration had budgeted some $500M for this cause, but is now seeking the additional funds in light of President David Granger’s announcement that the workers will receive the first tranche of their severance pay at the end of this month, which will amount to some $2B. The financial paper will be tabled by Finance Minister Winston Jordan who is on record as saying that government will have to cut several budgetary programmes to facilitate payment of the severance packages. Jordan said the administration will ensure that all workers get their severance, but noted that it is a case of where the government has to find resources to make the total payment of $5B. “It was a sudden and large amount and we had to find creative ways to do this… we will have to re-examine our 2018 budget which will very well result in cuts to programmes, so as to release money to pay the severances,” he said. This is why the severance is being paid in parts, he said.

President Granger last week announced that the first part of the multi-billion dollar severance package will be paid by the end of this month and the second tranche in the second half of the year. The Guyana Agricultural and General Workers Union (GAWU) has been organising marches in the sugar belt, demanding the full severance package at once. But Agriculture Minister Noel Holder said he personally would have liked to have the workers paid their severance packages immediately after they were severed.

In response to criticisms about the payment of the workers in two instalments, Holder said he believes the move by government is appreciated by those affected. “I think even the sugar workers will appreciate getting it in two instalments because of the amount of the money, rather than getting it upfront and perhaps spending it all and being in difficulties later on in the year.”

The Agriculture Minister nevertheless remained resolute that finding $4.5B to pay severance “is a difficult thing to do”. Government said it has committed to making the industry efficient and competitive by consolidating cultivation in East Berbice at Albion, in West Berbice at Blairmont and West Demerara at Uitvlugt. The corporation will aim at producing 147,000 tonnes annually, preserving three enlarged estates and protecting the jobs of over 11,000 workers.

Prime Minister Moses Nagamootoo had told the Guyana Chronicle that there was absolutely no doubt in his mind that “our coalition government would ensure that sugar workers receive their severance payment.” He said GuySuCo has no money to meet its obligations and government came to its rescue once again.

He said the overall cash payout is in excess of $4B, which would be paid out in two lump-sums starting this month-end. “It is estimated on average each redundant sugar worker would get as much as $1M, but the cash payout is part of a package, which would also see some workers having access to small loans for small businesses and down the road, retraining for skilled jobs; redeployment to associated jobs in drainage and irrigation, health and community service.” Mr Nagamootoo said it is his firm view that apart from the humanitarian package, workers would be able to access plots of leased lands from which they could eke out profitable livelihoods for themselves and families through other crops and or aquaculture. “I am pleased with the dedicated effort of the Cabinet and President David Granger in particular for having extended engagements, even over the holidays with GuySuCo and the Special Purpose Unit (SPU) to work out a roadmap both in the interest of sugar workers and the reformed new sugar industry. I am pleased that some 11,000 sugar workers would be retained in the merged estates and that we did everything we could to cushion the impact of retrenchment on the estates that would either be privatised, divested or diversified,” Mr Nagamootoo said.