Task force works out severance pact for RUSAL workers
Natural Resources Minister Raphael Trotman
Natural Resources Minister Raphael Trotman

…company to scale down operations from October
…Natural Resources Ministry to submit status report to Cabinet

THE Bauxite Company of Guyana Incorporated (BCGI) – a subsidiary of Russian Aluminum Inc. (RUSAL), in the light of U.S.- imposed sanctions, is reportedly planning to scale down its operations here from October 1, as the Natural Resources Ministry prepares to submit a status report to Cabinet.

General-Secretary of the Guyana Bauxite and General Workers Union (GBGWU), Lincoln Lewis

U.S. customers are mandated to wind down business with RUSAL by October 23, 2018, as a result of sanctions imposed in April, 2018 in response to Moscow’s alleged interference in the 2016 U.S. presidential election. On Tuesday, RUSAL BCGI reportedly informed its managers at its Aroaima, Region 10 worksite that the company will be scaling down its operations from October 1, 2018. “For the month of October, 2018, there will be no mining of bauxite, nor will there be any shipping of bauxite,” a source close to the local management of the Russian-owned company told the Guyana Chronicle. Though the Guyana Chronicle has attempted on numerous occasions to solicit an official comment from RUSAL BCGI, the company has remained tight-lipped on the situation.

Natural Resources Minister Raphael Trotman on Tuesday, though not disclosing much, said a report would be submitted to Cabinet soon. Days after the sanctions were imposed by the U.S. Government in April, the Guyana Government, in response, activated a task force to deal with the future of workers attached to RUSAL BCGI and Oldendorff Carriers – the company contracted to ship bauxite from Aroaima in the Upper Berbice River, Region 10, to the mouth of the Berbice River.

That task force, which was headed by Minister within the Ministry of Natural Resources, Simona Broomes, reportedly submitted its terms of reference and an interim report to Minister Trotman approximately five weeks ago, and according to General Secretary of the Guyana Bauxite and General Workers Union (GBGWU), Lincoln Lewis, there has since been no word from government. Lewis was a member of the task force.

BCGI Managing-Director Valerii Vinokurov

However, in that interim report, which was seen by the Guyana Chronicle, the task force recommended that the more than 700 affected workers be given a similar payment package that was applied by LINMINE, BERMINE and OMAI in the past. “Based on the decision of the companies to terminate their operations in Guyana, and since they have benefited from concessions given to the mining sector, they pay a similar package that was applied in the case of LINMINE in 1993 and onward, BERMINE in 2002 and onward, and OMAI Gold Mines in 2004, which means that the minimum pay for each year of service shall be equivalent to six weeks for each year of service to the maximum of two years’ pay in benefits,” the task force recommended in its interim report.

According to the report, workers’ representation by the Guyana Bauxite and General Workers Union (GB&GWU) and People’s United and General Workers Union (PU&GWU) at BCGI and Oldendorff Carriers, respectively, has been fraught with challenges. As such, a recommendation has been made for Compulsory Arbitration in keeping with the Labour Act.
Lewis, on Monday, said as the government remains silent on the situation, the bauxite workers at Aroaima are increasingly becoming concerned about their future at the bauxite company.

“There is a high sense of uncertainty on the site, and nobody from the government is saying anything to workers, neither is the company,” the GBGWU general-secretary told this newspaper. He emphasised that government must do all in its power to safeguard the livelihoods of workers. “It is not unlike this company (BCGI) to fold up, to close the plant, get rid of the workers, and think about selling it or reopen at some other time,” Lewis posited.

An employee of the Russian-owned bauxite company, who spoke to the Chronicle under anonymity on Tuesday, said since the visit by Minister Trotman and Minister Broomes to BCGI’s worksite in Aroaima in April, workers have not heard back from the Natural Resources Ministry. “In my opinion that visit was more politics than anything else,” the bauxite worker told this newspaper.

He, however, noted that approximately two months after the meeting with the government officials, BCGI’s Managing-Director Valerii Vinokurov held a meeting with staff to update them on the situation. During that meeting, Vinokurov reportedly told the workers that the company was trying to keep its head “above rough waters.”

File Photo: RUSAL BCGI workers at their Aroaima worksite back in April during the visit by the ministerial team
Photos by DPI

Though many of the workers remain uncertain about the future of the company in Guyana, it is business as usual at the mine site– at least for now. “Work is going on as per normal, outside of shipping, mining is taking place,” the bauxite worker told this newspaper.
At the time, news of the company’s decision to significantly reduce its operations had not officially filtered down to the staff. The bauxite worker, however, indicated that based on information received earlier this month, Oldendorff Carriers reportedly indicated to RUSAL BCGI that it will no longer be offering its services from September 30.

However, Oldendorff Carriers’ Spokesman Alex Graham dispelled the claim, indicating that he shipping company will not cease its shipping operations at the end of September. He noted that the company’s position as stated in June, 2018, remains the same.

Back then, Oldendorff Carriers, in a statement, had explained that as a result of the U.S. Government’s sanctions, which require that all companies doing business with those that have been sanctioned wind down operations by October 23, or they themselves will be sanctioned, it was compelled to put preparatory systems in place.

“While there are international negotiations taking place in an attempt to get the US Government to withdraw the current sanctions, OLDENDORFF is compelled to make preparations for winding down should such efforts fail. As a result, the company has begun to sensitise workers to the possibility that it will not be able to continue operations in Guyana,” the German-based trans-shipment company explained.

Pointing out that it has been operating successfully in Guyana for 12 years, Oldendorff said it had every intention of continuing operations until being forced to face closure of the operations here because of the U.S. Government’s sanctions. In that statement, it had indicated that employment information requested by the Department of Labour had been handed over.

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