GuySuCo offers 5 percent to GAWU

In wages, salaries increases talk…
…provided 270,000 tonnes achieved

Guyana Sugar Corporation has offered workers conditional increases between two and five percent, as talks yesterday broke down after the company refused to negotiate “under duress”, with workers of Enmore Estate still on strike.
GuySuCo yesterday communicated its position and proposal for 2010 wages and salaries increases to the Guyana Agricultural and General Workers Union (GAWU), according to a press release.
The company’s proposals were contained in a letter addressed to the General Secretary, Seepaul Narine.
The release said that the corporation has repeatedly illustrated to the union that the low rate of attendance, which for the crop to date is 54 percent, has been the main contributor, apart from the frequently wet periods, for the crop’s production lagging so far behind.
“If the turnout was at the 80 percent level as estimated in our budgeted numbers, production would have been approximately 40,000 tonnes sugar more than what has been achieved for the year to date,” the statement from said.
“In this scenario, there would have been little threat of carrying forward canes to the first crop 2011, which at the moment is seemingly imminent. However, as of November 8, 2010, overall sugar production figure stood at 190,754 tonnes,” the statement said.
GuySuCo said that against this “precarious” production and financial backdrop, “the Corporation urges the Union to strongly reconsider its proposal for 15 percent increase in pay this year; since it is clear that the industry’s ability to afford the proposed levels of increases is strained beyond its limit.”
GuySuCo said, “Nevertheless the Corporation proposes that if this year’s production is 270,000 tonnes sugar or more, an across-the-board increase of 5 percent, effective from January 1, 2010, will be awarded. The percentage across the board increase will be reduced to 3 percent if production is between 260,000 and 269,000 tonnes. Further, if production drops to 250,000 tonnes, a one-off, non-sustainable, increase of 2 percent will be awarded.”
On the cancellation of the planned meeting between Union and GuySuCo yesterday, the company said, “Unfortunately a strike by harvesters at Enmore estate, which is in its 3rd consecutive day, over the current wage talks frustrated the hosting of the meeting. The cancellation was done after mutual consultation by both parties, as it would have been deemed to be held under duress with Enmore harvesters still on strike.”
The Corporation, at the last three meetings on October 12, 15 and November 3, 2010 reaffirmed its state of indebtedness caused by low sugar production experienced in the past five years.
It said that during this period, the Corporation has failed to meet its production targets, the reasons for which have been well ventilated. “However, while the Corporation has managed to gradually reduce its level of indebtedness, the outstanding figure remains substantial,” GuySuCo said.
“Repayment of these debts, meeting our wages and salaries costs, and maintaining all aspects of our increased production drive in the field and factory is very much dependent on the Corporation attaining a production level of at least 264,000 tonnes sugar for 2010,” the company stated.
A senior GAWU official had indicated on November 3, at the negotiation meeting held at LBI, that the canes available this crop, if harvested, could yield at least 270,000 tonnes sugar in total for the year, the statement revealed.
“GuySuCo is equally aware that the achievement of 270,000 tonnes is an attainable target, provided that all canes could be harvested. The availability of canes in the 2nd crop this year points in the direction of a turnaround trend in the sugar industry,” GuySuCo said.
Contacted yesterday, President of GAWU Komal Chand said that a meeting has been fixed between the union and GuySuCo for tomorrow, after which he will be in a better position to make a statement on the proposals.

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