Seventy-five bauxite workers will soon be retrenched after their union and the Rusal subsidiary, Bauxite Company of Guyana Inc. (BCGI) agreed to a 10 percent wage increase retroactive to January 2009.
The agreement was one of three options proposed to the union by the Aroaima-based company.
The decision was taken at a recent meeting with unionized workers of BCGI, and the members of the Guyana Bauxite Workers Union (GBWU). The workers were prepared to take industrial action had the company not responded to a letter requesting a ten percent increase across the board retroactive to January 1, of this year.
In a letter to the GBWU’s General Secretary Leslie Gonsalves, BCGI’s General Manager Sergey Kostyuk said that during the negotiations for wage increases they had informed the union of the losses suffered by the company this year. Kostyuk also said that they had provided the union with all the information on the current financial situation of BCGI and advised that the company was not in a position to increase wages in 2009. This correspondence, which was dated November 7, 2009, was also sent to the union’s General President Charles Sampson and to the Chief Labour Officer Yoganand Persaud
The Company first proposed increasing wages up to ten percent and making retroactive payments. In order to do this, the company stated that it would be necessary to carry out retrenchment of workers in proportion according to the production volume decrease in 2009.
As a second option, the Company proposed increasing wages up to 10 percent and retroactive payments. To achieve this, working shifts of each hourly employee would be decreased to eight hours in accordance with the normal length of a working day, as stated in the country’s laws.
The third proposal was for a lump sum payment amounting to yearly safety bonus taxed to all employees by the 25th of December, 2009. The amount of the safety bonus tax would be equal to 2% of the annual wage increase.
In an interview with this newspaper, the union’s General President Charles Sampson said the options were discussed at length with the workers and they unanimously opted for the 10% increase and the retrenchment package. According to Sampson, the workers’ choice was subsequently discussed with the company. He said that he felt that the workers’ decision came as a surprise to the company which requested the decision in writing.
“They were caught off guard and that says that they are very poor negotiators,” Sampson said. “We learnt that they are to meet with the workers at their work site and we see this as an attempt to undermine the union and we are looking at the situation and very soon we will know what to do”, he added.
Stabroek News also spoke with a number of workers who said that they are in agreement with the first proposal. They said that approximately 40 employees were prepared to leave the job at the end of this year.
Asked if they had considered the long term effects of leaving the job, workers said that they are confident that they would be able to secure lucrative jobs in other industries. Some said that they would be migrating while other disclosed plans of venturing out into the logging and farming industries. They were all of the firm opinion that the company can do better for employees and that the company is not affected by the global crisis to the extent it claims.
Workers pointed out that between December 2008 and November 2009, despite claims of being strapped for funds, the company has been hiring and promoting workers, purchasing new equipment and expanding. They said that during the same period, the company hired five expatriates for whom new positions were created and promoted six locals to newly created positions. Five locals were later promoted to fill the gap, the workers disclosed.
“For the first time in the history of this company we have had a foreign personnel manager. They created a position for security director which was also taken up by an expatriate. In addition they created positions for planning and electrical superintendents. This company never had those positions before and they created them for foreigners,” said an employee.
The company additionally purchased two new vehicles last December and one other in February this year. A new drill arrived at the mine site recently. Workers said that the existing drill is in excellent working order and meets the existing need of the company. They added that as part of the current expansion drive being undertaken by the company there is talk of the purchasing of three new 2008 model Forde Escalade vehicles and one new boom truck; all of which are expected in the country by the end of this month.
Additionally the company purchased one grader and dragline in the first half of December last year, while in October this year they hired former Chief Labour Officer Mohammed Akeel as consultant in the Human Resources Department. Efforts to confirm this with the company proved futile. Stabroek News was instructed to contact Personnel Manager Elena Gorshkova and Dmitriy Shipulin via email, but no response was received after more than a week.
“They are telling us that they don’t have monies to pay increases but yet they are buying new machinery and hiring and promoting people. Are these displays of an ailing company?” questioned another employee.
According to the collective labour agreement of the company, overtime meals, shift premium and wages must be reviewed every year using the inflation rate from the previous year as a guide. It also says that on the December 31, every year the old wage expires.
“The wages that we are collecting now are the same wages from June of 2008,” another employee contended.
A letter dated the 3rd November, 2009, which was posted on notice boards around the company, stated that in 2009 BCGI’s management had applied massive efforts to avoid a shutdown. It said that the global financial crisis and the aluminum market caused the company to devise steps in order to save the enterprise.
The letter further stated that the financial state of the company and suffered losses did not allow an increase in wages this year, nevertheless, BCGI employees’ wages were not decreased and due to fulfillment of plans, wages and the high bonuses payment were held at a high level in comparison to other enterprises in Guyana.
It further stated that ways of interception and confrontation from particular employees and their representatives had led to occurrences that took place in spring of this year (referring to a strike action in May).
“As a result the only customer for our Guyana Bauxite has purchased lots from other producers. We have almost lost our customers and production for the fourth quarter of 2009 was significantly decreased which could in turn result in reduction of working shifts or staff reduction,” said the letter, adding that the production cost reduction made the company’s management able to convince the management of RUSAL not to apply reduction production plans for the fourth quarter of 2009 and for 2010.
Workers said that they particularly took offence to the last paragraph of the letter which stated: “Do not follow provocative influence of particular groups who are aimed to destabilize situation, induce distemper in all hands and gain personal benefit. Any unsanctioned shut down may lead to non-recoverable consequences”.
The bauxite company in its letter to employees had appealed for their support and understanding stating that they will apply their best efforts to keep the enterprise stable in order to keep social warranties to employees.
In its most recent letter to the union, which indicated their willingness to negotiate the three proposals, BCGI also indicated that starting December 1 they are prepared to proceed to the negotiation for a wage increase in 2010.
