— even though it had approved the merger when in power

THE opposition People’s Progressive Party (PPP) has criticised the move by the Guyana Sugar Corporation (GuySuCo) to go ahead with the merger of the LBI and Enmore estates. On Thursday, GuySuCo took a decision to merge the operations at the LBI estate with those at Enmore, in an attempt to cut production costs and develop the East Demerara estate.
The decision 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 had been 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 been able to produce only 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.
The Guyana Agricultural and General Workers’ Union (GAWU) has called the merger of the two estates as a “closure” which is bound to adversely affect workers, some of which the union currently represents.
Hanoman explained though, that with regard 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.
Nevertheless, the opposition party which has over the years held a strong support base among sugar workers, stated that GuySuCo’s attempt at cloaking the move to close another sugar estate as plans at “consolidating,” “integrating” and “merging” the East Demerara estates is “unacceptable.”
Earlier in the year, GuySuCo announced its intention to close down the Wales estate at the end of this year, given the fact that the estate has served as more of a liability than an asset.
Under the PPP administration, a decision was made to merge the two estates, and GuySuCo is going ahead with the decision.
But the opposition party will have none of it.
“The PPP is of the view that collateral damage will result unquestionably; with sugar workers in particular and workers in general from other related industrial activities and service providers being seriously affected in the same way as the workers at Wales Estate,” the PPP said in a statement.
However, the party noted that it will continue to lend “firm and unshakeable support” and solidarity to sugar workers and their trade unions in their struggle to save the sugar industry.
The LBI factory was closed under the PPP administration in 2011 and the merging of these operations were expected to commence immediately, but Hanoman said it had been delayed for some reason or the other.