-as global crisis bites
Russian bauxite giant United Company (UC) RUSAL has cut around fifty local jobs within the past two weeks as the company grapples with increasing costs and slumping demand for aluminum in the deteriorating global economic environment.
No official announcements were made here about the layoffs, but a senior official within the local subsidiary, Bauxite Company of Guyana Inc. (BCGI) confirmed yesterday that employees from the administrative department of the company have been cut. It was noted that persons directly involved in mining and maintenance were not affected.
BCGI – based at Aroaima, Berbice – is expected to put out a press statement on the issue later this week. RUSAL is the world’s largest aluminum producer.
Interfax news agency out of Russia reported yesterday that UC RUSAL has disclosed plans to reduce production by as much as 4 percent at its Russian smelters and cut 5 percent of jobs worldwide; most of the cuts will be at RUSAL‘s overseas units. CEO Alexander Bulygin was reported as saying that the company may reduce output at six plants by about 180,000 tons a year.
BCGI has reportedly been struggling to upkeep operations and recently made the decision to cut staff while reviewing its production plans. The company is yet to scale back on production expenditure, according to a source, since it believes that a reduced workforce seems a more practicable solution at this time.
Prior to the announcement by BCGI’s parent company, RUSAL had been engaging the local bauxite union, the Guyana Bauxite and General Workers Union (GBGWU) about its intention to lay off employees with the aim of finding an amicable solution.
Charles Sampson, President of the GBGWU, told Stabroek News yesterday that RUSAL had intended to axe in excess of fifty employees though he did not say how many exactly. He said it was through discussions with the union and recommendations that were made that several more jobs were saved, and pointed out that similar patterns were evolving with RUSAL subsidiaries, particularly in Jamaica where 150 jobs were cut.
The company is facing production problems, difficulties with its equipment and mining hurdles in general, according to Sampson. He said that RUSAL had some of these problems for sometime now and that it has been added to the list of financial woes.
“The global economic meltdown has affected the local bauxite company in addition to the problems it has already been facing, but these are issues that had been discussed to some extent when we sat down with them and we have since accepted the reasons for the layoffs as valid”, Sampson stated.
He said that despite the agony of the situation as it relates to persons being laid off given the economic situation, RUSAL has been straight with the union. Sampson noted that the company “came clean” and that the union accepted the reasons advanced for the staff cut.
According to Sampson, the same problems that are facing RUSAL have not escaped the other local bauxite company. He said mining difficulties have been experienced across the board, noting that the weather has also hurt the companies. But he stated that the advice of locals who have been in the industry for decades had been rejected by both companies in the past.
“They need to rethink their mining policies and methods and look towards purchasing new equipment since this will certainly alleviate many of the problems that they are facing”, he added.
Stabroek News also spoke with Peter Benny, Personnel and Industrial Relations Officer of Bosai Minerals who said that his company has not been forced to cut any of its staff. He stated that demand is still great on the market and that the company has a target to reach for next year, which it is currently working towards.
