NAACIE today joined the main sugar union, GAWU in calling for an urgent inquiry into the Guyana Sugar Corporation (GuySuCo) which has been beset by falling production, high debt and a series of problems at its flagship Skeldon estate.
In a statement, the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) noted that last year, the second lowest production in 24 years was registered.
NAACIE accused the corporation of “senseless pre-harvesting of pre-ripened cane causing poor quality production also compromising quality and production potential of the 2015 first crop.” It also cited fundamentally flawed management, a poor decision to reject the Tate and Lyle three-year contract in late 2012 for a mere one-year agreement thus resulting in significant financial loss to the Sugar Corporation for 2013 to 2015 inclusive.
NAACIE said that it was against this background that it was throwing its unstinting support behind the call for an urgent Commission of Inquiry into the Guyana’s “besieged Sugar Industry, as mounted by the major Union in the sector, the Guyana Agricultural and General Workers Union (GAWU).” NAACIE also represents key employees in the industry and says it is of the view that the industry is indeed besieged and under siege by the “atrocious decisions” by Board and Management.
NAACIE says it has observed a small but vital detail characterizing the industry in recent times.“There is woefully inadequate expert management monitoring of the husbandry in the fields. The results are poor plant nurturing, poor roads, poor punts maintenance all resulting (in) poor quality product”, NAACIE declared.
It added that the GuySuCo Board, never by itself seems to enquire into its own stewardship.
“This is apparent from the repetitive policy and management blunders yearly. The sectors, employees, suppliers and our general population then feel the economic squeeze. How long must we merely mouth that sugar is too big to fail?”, the union asked.
It argued that annual budgetary subventions are not stopping the haemorrhaging at GuySuCo. “The taxpayers are being exploited”, it said, adding that a national expert, impartial inquiry must be mounted now into the industry.
“Not so much to cast blame now so obvious but to rescue this vital industry which offers succor to thousands and to the Nation’s life source still”, the union said.
In the November/December, 2014 edition of its newspaper Combat, GAWU excoriated GuySuCo, noting that last year’s production of 216,142 was the second lowest production in 24 years. It noted that even this figure was 3,000 tonnes below the corporation’s own target.
It also charged that in a bid to get close to its target, GuySuCo had harvested immature canes and this will impact on this year’s target.
“The pre-harvesting of young canes on a number of estates during some weeks in November and December, 2014 was not only senseless and costly, but will compromise the production potential of the first crop (this year)”, GAWU said.
Other analysts had raised concerns that GuySuCo was reaping young canes but the corporation has not addressed this matter. Analysts have said that young canes are being reaped because GuySuCo has not had a rigorous replanting exercise in recent years and so there aren’t enough mature canes in the fields.
“Was it the decision of the Board of Directors to harvest a significant quantity of pre-ripened cane, of which the tonnes cane per tonne sugar (tc/ts) ratio was poor despite the favourably sunny weather which usually enhances the sucrose content of the cane?”, GAWU asked.
It further contended that despite the all-round resources of the Corporation, it is understood that the cost of production which it said was over US40 cents per pound continues to climb as a result of mainly poor cane quality. GuySuCo’s US$200M sugar expansion project under the Jagdeo administration had been intended to bring down the cost of production to US17-19 cents per pound but this has not been possible. The centre piece of its expansion programme, the Skeldon sugar factory has been an enormous burden on the industry and is now reportedly producing the highest costing sugar in the industry.
GAWU also charged that this year the industry finds itself more indebted than it was previously and this has been worsened by poor decision making on sales via Tate and Lyle.
“Suppliers’ payments for service and materials are delayed for months. The present cash flow position of the Corporation would not have been in such dire straits had the Corporation agreed in late 2012 to a three-year contract to supply the 190,000 tonnes sugar to the Tate and Lyle market. For three years – 2013, 2014 and 2015 – the Corporation would have been receiving over US$700 per tonne of sugar.
The Corporation insisted on a one-year contract only for 2013, unlike the Jamaican sugar industry which has negotiated with Tate and Lyle a three-year contract for years 2013, 2014 and 2015, and is paid US$750 per tonne sugar. The latest shipments to Tate and Lyle in November/December, 2014 by GuySuCo merely attracted US$340 per tonne”, GAWU argued.
It added “The GAWU believes that while it’s long overdue to have a comprehensive Enquiry into the operations of the sugar industry, such Enquiry must not be delayed further if the important tentacled industry is to be saved from collapse”.
The calls by the two unions will pile pressure on the government and the corporation which have not addressed the dire condition of the industry.
