The corporation’s statement said it is temporarily experiencing cash flow difficulties which have affected its ability to cover the wage bill. However, GuySuCo said it is “working feverishly to find alternative arrangements; so as to ensure workers are paid for this week at the earliest opportunity”.
It referred to the situation as unavoidable due to external factors, noting that the unions representing workers have been previously informed of the difficulties.
The statement said also of the unions, “we appreciate their understanding at this point in time”.
According to the corporation, the current situation is a reminder of the financial difficulties of GuySuCo which it said has been well ventilated as the industry continues to focus on the implementation of its turnaround plan.
GuySuCo suffered a $3 billion loss from 2008 with projected cash deficits going forward. Measures in its turnaround plan all target cost-cutting projects coupled with injecting capital. The plan is banking on the sale of lands at Diamond with a potential net gain of $34B to materialize, in addition to the disposal of several other assets to improve the financial position of the industry which is also plagued by declining levels of sugar production.
The corporation has disclosed its losses and even indicated earlier this year that the projected cash deficit at the end of 2009 is expected to be $523M.
The turnaround plan suggests that the future viability of the struggling industry is dependent on accelerated mechanization, and it envisages transforming Enmore estate into an important hub, ending grinding at LBI, an ethanol plant and transferring health and community services to the state.
