The Guyana Sugar Corporation (GuySuCo) said on Friday that there was never any threat to its supply quota and the delayed shipments only meant that sugar received by the EU after October 1 was sold at a lower price incurring a US$1.3 million loss in revenue.
GuySuCo was responding to a statement issued by the Alliance For Change, which said that the recent shortfall in the EU quota of 55,000 tonnes of sugar on or before September 5, and the loss of revenue in the sum of US$1.5 million was a direct result of massive management inefficiency and incompetence by GuySuCo’s leadership.
However, GuySuCo explained that the current quota year runs from October 1, 2008 to September 30, 2009 when the Sugar Protocol ends. From October 1, the price for sugar slips from 496 euros per tonne to 448 euros per tone, in keeping with the price cuts in sugar by the EU.
The corporation said several factors including inclement weather, strikes and slippage in the operation of the new Skeldon factory led to a delay of the ship contracted to take the sugar to Europe. GuySuCo had to pay demurrage in the sum of US$200,000 bringing the total loss in revenue to US$1.5 million.
At the AFC press briefing held on Friday at the Sidewalk Café, AFC Chairman Khemraj Ramjattan said the overused excuses of weather and industrial action by sugar workers were grand misrepresentations to hide the troubles brewing in the industry.
The AFC said that at recent meetings between the AFC leadership and sugar workers in the Corentyne, many workers complained that their cane was not properly weighed on the scales at the factory. They said they wanted similar scales to those used when the canes are cut. They complained about a shortage of water while cutting cane in the hot sun; that only one pair of boots was given to a worker when in the past they obtained two pairs; and only a favoured few got long boots, gloves and cloaks.
They also complained about insanitary state of the base of the punts, which included a stench and worms.
The workers claim they make known their grievances to the GAWU representatives but get nowhere leading to frustration.
The AFC said the workers have concluded that there now exists an incestuous relationship between the management of GuySuCo and the union and would soon request that GuySuCo cease the deduction of union dues of $650 from their wages.
The party said it supports the workers demand for a 14.75% increase in wages and welcomes the setting up of an arbitration tribunal to resolve the impasse.
The party said what was more frightening was information that there were major component failures occurring in test runs and structural problems which caused GuySuCo’s administration to hastily start repairs of the old factory.
Debunking the AFC statements, GuySuCo said that sugar cane is weighed in a specifically designed scale to take the total cane loaded from a punt. The accuracy of the existing scales is verified by the GAWU harvesting representative at least once per fortnight and at some estates on a weekly basis. An official of the Customs and Excise Department also does the verification of the scales. The accuracy of the scales is tested once each year at the Demerara Sugar terminal in the presence of representatives of the Customs and Excise Department, the Guyana National Bureau of Standards and the GAWU harvesting representatives.
GuySuCo said that the scales that weigh the sugar are not compatible to be used to weigh the sugar cane owing to the different nature of sugar and cane.
On the issue of water distribution in the fields, GuySuCo said that water tanks with drinking water, which are regularly and thoroughly washed to maintain strict hygienic standards, are either installed in punts or are pulled by tractors to the cane harvesters. They are also provided with three water bags per year, for use in the fields.
Meanwhile in relation to boots, GuySuCo said it was reviewing GAWU’s request made during the wage negotiations this year for a second pair of yachting boots to be issued in the second crop. GuySuCo said it has been issuing a pair of boots each year.
Stating that it rigidly adheres to universally accepted safety standards to ensure that every worker is adequately protected at the work place, the corporation said that the issuance of protective equipment whether it be yachting boots, long boots, safety goggles, or any other personal protective equipment is given on the basis of the type of work undertaken by the individual.
On the issue of the union dues, GuySuCo will adhere to the recognition agreement it signed with GAWU in 1976. As regards the wage increase, it said, GuySuCo’s final offer at the last conciliatory meeting was 5.25% for 2008.
The corporation said the new factory was a turn-key project – meaning that the design, construction, commissioning and handover of the factory was with the Chinese contractor.
GuySuCo said the contractor started commissioning the factory on August 25 but encountered some problems and it was the responsibility of the contractor to rectify the problems. GuySuCo will not take over the plant until it has been fully tested and proven as stated under the terms of contract.
The release, signed by GuySuCo’s Chief Executive Nick Jackson said that the old factory at Skeldon was deliberately left intact at the end of the first crop as a contingency measure in the event of any unforeseen problems with the commissioning of the new factory. Plans that were already in place were being activated to start up the old factory to ensure that the current crop is taken care of.
Finally, the statement said, “The management of GuySuCo will not engage in, or be distracted by, any political rhetoric or political posturing with any political group or party. We will continue to work in the best interests of the corporation to ensure the survival of the industry in these very challenging times.”
