In the wake of a crippling seven-day strike called by GAWU, the Guyana Sugar Corporation said that it may cease all operations across the industry, delivering the latest blow in a dismal production year.
GuySuCo made the announcement shortly after the workers represented by the Guyana Agricultural and General Workers Union (GAWU) went on strike across all estates; the industrial action is expected to last until next Thursday. Wage talks between the corporation and the union broke down earlier this week, triggering the action from workers. “…The Corporation will be incurring heavy overhead expenses in some areas, without any revenue being generated, and as a consequence it may decide to temporarily cease all operations, except in cases of essential services, until the situation becomes normal,” GuySuCo said yesterday, in a lengthy statement which severely criticised the union over its decision.
Chief Executive Officer at GuySuCo Paul Bhim told Stabroek News that GAWU’s decision was unfortunate, adding that the union “is not making it easy for us.” Bhim said the action will obviously hurt production and impact negatively on the second crop, which will likely suffer a more severe production deficit than the first crop earlier this year.
Bhim said that the industry was facing tough times ahead as a result of the action, noting that the year has been difficult, given the problems with the Skeldon factory. He said that GAWU’s demand that the factory be shut down until the problems are remedied “was not a wise call” because of critical targets which the corporation is still struggling to meet. However, he acknowledged yet again that Skeldon is in crisis.
In GAWU’s words, the Skeldon factory has gone from bad to worse and no information is coming out to suggest otherwise.
Bhim told this newspaper yesterday that the factory was shut down close to 15 hours on Thursday, to facilitate maintenance work which included fixing problems with the punt dumper and changing all the hammers.
GuySuCo pointed to its contractual marketing commitment to the EU and CARICOM, saying that it has to deliver sugar to these markets no later than December 31, this year or face severe penalties. It also registered its disappointment with the industrial action. The corporation finally reached 200,000 tonnes on Thursday.
“The Corporation views this move as a most callous and blatant disregard for the current state of the sugar industry. Such a move will undoubtedly question how serious the union and by extension their members are in saving the industry which has provided for them over the years,” the corporation said.
GuySuCo said too that it is left to ponder if there have been deliberate acts to inflict harm to “an already ailing industry,” noting that when it met with GAWU on Thursday the union and its representatives gave no official notification or intimation that industrial action was either planned or contemplated.
Near total shutdown
According to the corporation, all estates reported an almost total shutdown yesterday and as a result some 2,000 punts of canes—or nearly 12,000 tonnes of canes that could have been processed to make 1,000 tonnes of sugar—which were burnt yesterday are now being left to perish in the fields.
GuySuCo said that if it had been informed of the strike, burning could have been avoided. In terms of its loss, the corporation said that the 1,000 tonnes sugar could have generated revenue of G$115M, which “is closely equivalent to 1% increase in wages”.
GAWU has called on the sugar corporation to consider shutting Skeldon down until the costly defects are remedied. The union said that operations at the factory have worsened over the past few days and it observed that a shutdown will save the corporation millions of “much needed dollars.”
On Thursday, the union issued a statement calling for the shutdown but Bhim said it was not possible given the current situation. However, the corporation later issued a statement saying that it will likely cease operations. Wage talks between GAWU and the union also broke down on Thursday after the corporation stuck to previous offers, which included a conditional five percent maximum increase. “They continue to make an offer tied to an unrealistic production target, we know that they cannot make 250,000 tonnes by year end…it is not possible,” union President Komal Chand said. He said the union was disappointed.
Yesterday GuySuCo made reference its efforts “to turn the industry around by increasing sugar production through increased cane supply,” saying that it is disappointing that canes which were nurtured at great expense and attention are now being left to deteriorate. “The Corporation has noted GAWU’s sole focus this time around is apparently on the Skeldon factory and the technical challenges which have affected its operations. Surely, the union must be aware that the Corporation will in no way benefit from these challenges and has in fact made every effort to rectify them in the shortest possible time,” GuySuCo said.
The corporation continued saying that GAWU has made the problems at Skeldon “public knowledge” by detailing the problems, adding it is astonished by calls from the union for the corporation to come clean about what is happening at the factory.
Plea
GuySuCo said that its only available option was to “once again implore the union and our workers to assess the situation in earnest” as the current strike will further deteriorate an already fragile and precarious financial situation. It said too that the strike action will erode whatever affordability there may be in the corporation’s ability to increase wages and salaries, since its affordability is contingent to achieving at least 250,000 tonnes sugar.
GuySuCo said that despite its troubles it has managed to service its markets and creditors; meet its weekly wage bill which amounts to 300 million dollars on average; focus on the challenges at the Skeldon factory; continued to invest in its fields and other factories to improve production; increase its mechanization fleet to reduce the workload on harvesters; and increase efficiency and ensure that the workers employment are secured.
Further, GuySuCo noted that it has focused on the daily challenges on each estate, including numerous strikes; tried to work around as best as possible the effects of both the dry (El Nino) and wet weather (La Nina) conditions and it added that the results are that there are enough canes in the fields to even surpass the revised target of 264,000 tonnes. It noted that 2011 will see a further increase in this regard.
The Corporation said too that it has revealed to GAWU the data on the amount of canes that may be carried over at Skeldon, Albion, and Rose Hall and LBI and the consequential effects of its occurrence in this and the next crop. “This strike most frustratingly will further increase the volume of canes that will be carried forward and result in the loss of sugar,” it added.
