By Ravin Singh
THE GUYANA Sugar Corporation (GUYSUCO) yesterday announced that it has taken a decision to merge the operations at LBI estate with those at Enmore, in an attempt to cut the cost of production and develop the east Demerara estate.This was confirmed by Chief Executive Officer (CEO) of the Corporation, Errol Hanoman, who explained that in 2011, when the LBI factory was closed, the operations there were to be integrated with those at Enmore.
However, he noted that the integration process was stymied for a number of reasons over the years, and this led to there being two operational departments at the estates; these included the Field Workshop, Mill Dock, Field Lab, Stores, and Administrative Office.
“In 2011 the estates should have been properly integrated… so therefore, our move to close one of each of those listed things is just a continuation to the integration process which started in 2011” Hanoman said.
He further revealed that over the years, compared to Albion which produces at least 60,000 tonnes of sugar annually, the East Demerara Estate has only been able to produce 29,000 despite having two of each department. And this, the CEO related, led to the cost of production “blowing through the roof.”
As such, he noted that the integration process can now aid in improving the production of the East Demerara Estate (merger of LBI and Enmore) and cut production costs, while also saving some estates
Meanwhile, the Guyana Agricultural and General Workers’ Union (GAWU) sought to describe the merging of the two estates as a “closure” which is bound to adversely affect workers; some of which the union currently represents.
According to union in a statement yesterday, delegations from that union and the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) met with GuySuCo on April 12, 2016 at the request of the Corporation with respect to “finalising the integration of East Demerara Estates”.
At the meeting, the Corporation informed the unions of a decision made to have the operations of the Field Workshop, Mill Dock, Field Lab, Stores, and Administrative Offices, that are based at LBI Estate, merged with similar operations at Enmore Estate during this year.
“This announcement came as a surprise to the Unions and their delegates to the meeting. When the LBI factory was closed and its workers were transferred to Enmore factory, both Unions were assured by a member of the current Interim Management that there will be no closure of any other department after the closure of the factory. Thus, it was never expected that the Corporation under the same Management could decide to dismantle the costly buildings at LBI Estate and end the operations which it approved about five (5) years ago” GAWU said in its statement.
As it relates to the effects of this closure, GAWU noted that it will result in over 800 workers, who are represented by GAWU and NAACIE, being deployed to Enmore Estate. The union further explained that it is doubtful that the deployed workers would be offered regular and full work at Enmore as is the present case at LBI.
“In this regard, account must be taken that similar operations at Enmore Estate have their own full complement of employees, a situation likened to that at Uitvlugt where Wales Estate workers are to be channeled according to a statements by high-placed authorities and promised regular, permanent employment” GAWU said.
The union also revealed that at the meeting with the Corporation, they were not informed when the operations were to be closed, neither were they privy to vital information about the employees’ future. “It is a similar experience to that of Wales where the company, to date, has failed to provide full information on the status of the future of 1,700 workers from Wales Estate” the union added.
However, Hanoman rebuffed the union’s comment regarding a “closure” of the estate. According to him, “GAWU’s headline is misleading; it is not right about the closure of all operations because the agricultural research center will remain there.”
He noted that GuySuco s trying to centralize all the estate operations at Enmore (East Demerara Estate), and added to the research center, LBI will house the head office and the Information Technology (IT) department of the corporation.
“After that we will sell the facility and property at Ogle with hopes of getting some money to start payments on the $82 billion debt which we owe. So it is against the backdrop and the loss making sugar industry that we have to make decisions like these” the CEO added.
He also explained that with regards to the workforce, it must be acknowledged that there is only one estate and the personnel from LBI, if they become a surplus relative to requirements at the East Demerara Estate, then GuySuco will have to pay them severance and declare them redundant.
“However, if there are vacancies at the East Demerara Estate they will have first preference to fill them” he said.