Dear Editor,
With reference to the arbitration tribunal in the sugar wages dispute, why did GAWU did not object to Dr Gobind Ganga being the chairman of the tribunal, when they knew full well that this gentleman is the Deputy Governor of the Bank of Guyana and the determination and management of the fiscal and monetary policies of this country fall under his portfolio? Guysuco is a key contributor to the country’s foreign exchange, and with the sugar company experiencing a significant decline in sugar production in the last three years, exacerbated by high employment costs, low productivity and high absenteeism, he was placed in a conflict of interest situation.
The tribunal awarded 6% across the board and a 2.1% one-off payment to be paid before the end of December 2008 and March 31, 2009, respectively. The Guyana Chronicle in a press statement on November 24, 2008 from the Minister of Agriculture “pointed out that the award of 6% for 2008 across the board, together with a 2.1% one-off cost of living adjustment for 2008 is consistent with the projected 8.1% inflation for 2008.” The Minister further stated that “the award can be considered fair and reasonable in the circumstances.” How can the award be “fair and reasonable” when workers’ wages are increased by 6% and the rate of inflation is projected at 8.1%? The 2.1% is an adjustment for cost of living, and it’s a one-off payment, which is not sustainable.
With regard to the new Skeldon factory it seems Guysuco for whatever reason has gone deafeningly silent as opposed to its usual hullabaloo on the commissioning of this massive project. There was a time when press releases and photo opportunities were the order of the day. With the many mechanical problems encountered in the new factory, the old factory had to be recommissioned. I must say, given my experience in the commissioning of food factories in several countries, it was a tragic error not to continue with the old factory until the entire commissioning of the new factory was satisfactorily completed. The commissioning of any factory takes an inordinately long time, and Guysuco being blessed with an adjoining old factory should have kept it going until the new factory was deemed ready.
Had the old factory at Skeldon continued to grind for this second crop, the estate would have significantly reduced the amount of canes projected to be carried over into the first crop next year, and much-needed sugar would have been produced to bolster the already dismal production anticipated this year. The sugar company is in serious trouble, never before experienced, being plagued with a massive exodus of skills, poor wages, cash deficits, low production and low morale. Whilst all of this is going on the government sees the fittest thing to do is to set up an inquiry. Of what use would be the information gathered from this be when the human resource base is dwindling and de-motivated? It’s obvious the current management contract with Booker Tate and its style, the quality of corporate governance and the deliberations of the board are incapable of moving this company forward. The government needs to immediately have a meeting with the key stakeholders in this business – unions, management and board – and have a free and frank discussion on the way forward. The concerns, opinions and views of all have to be respected and properly deliberated upon. There should be no room for political aggrandizement, grandstanding, hubris, ineptitude, deception and bias. It must be a process of commitment, support and honesty, failing which this company would fall into the abyss of no return.
Yours faithfully,
Rudolph Ramsammy
