Guyana Sugar Corporation (GuySuCo) yesterday met the Guyana Agricultural and General Workers’ Union (GAWU) to assure that workers’ rights would be respected during the transition of the Enmore Packaging Plant into the oil and gas support services sector, but only limited information was provided on the deal struck between government and developer GKB.
The meeting was scheduled yesterday to discuss the welfare concerns of workers. The meeting was prompted by the recent announcement of GKB, a joint venture between local machining company Guy-sons and its United States partner, equipment manufacturer K&B Industries, to transform the packaging plant into a fabrication facility for the oil and gas industry. As part of the deal, the company will take possession of 55 acres of East Demerara Estate lands.
Following the meeting, GAWU yesterday issued a statement to the press saying that while workers were pleased with the union’s interest and backing, the corporation did indicate “that it could not offer any further clarity at this point,” to additional questions asked.
The union met with the corporation’s industrial relations team and as a result they were unable to answer other questions.
The statement from the union added “Through our engagement, the Union was able to ensure that the rights of the 30-odd workers within the GAWU’s bargaining unit were respected. The GuySuCo has agreed to ensure that it fulfills its obligations as efforts are made to transition the workers to the new venture.”
GAWU’s General Secretary, Aslim Singh, told Stabroek News the sugar producer also indicated that the 100- odd workers linked to other aspects of the estate operations, such as field and waterways maintenance, power plant, workshop, and security guards, will not be affected as the transformational changes occur.
According to the union, the workers have indicated that they are satisfied with the union’s efforts.
“They opined that they felt GAWU’s presence allowed them to feel reassured and know that they are protected,” the statement added.
Questions nonetheless remain unanswered with regard to the future of the over 2,000 severed sugar workers that were promised jobs at the reopening of the estate.
Stabroek News yesterday reported that it was informed by a source close to government that sugar production at the East Demerara estate is over at this point. This revelation creates further uncertainty for the creation of jobs for those workers.
The deal signed with GKB will see jobs created for at least 500 persons over the next few years.
Caribbean International Distributors Inc (CIDI), a subsidiary of Surinamese-owned Rudisa Inc, last year signed a Memorandum of Understanding with Guyana’s Office for Investment (GO-Invest) for the development of a US$35 million agro-processing facility at Enmore. The venture touted the creation of 600 jobs but to date there has been no other word on its startup.
A day after the announcement of the deal, the union wrote GuySuCo seeking clarification.
“We have seen from media reports that GuySuCo plans to operate the plant through some alternative arrangements. We, at this time, are seeking to learn of these arrangements and what the next steps will envisage. The GAWU is aware that the Company continues to utilize the plant as it repositions itself as a value-added sugar producer.”
The union’s General Secretary noted that whatever information they had concerning the deal, had been gathered from news reports.
Agriculture Minister Zulfikar Mustapha met with workers from the Enmore Packaging Facility and had given them assurances that they will be given jobs.
“We are here today because many workers expressed concerns after they learned that this packaging plant will be relocated to Albion. We are exploring that option because, as a government, we want to consolidate, recapitalize and we want to ensure GuySuCo is an entity that eventually becomes profitable. Over the last 18 months, since assuming office, we’ve allocated almost $14 billion to this Corporation. We’ve also injected funds into the shuttered estates like, here, at Enmore…” Mustapha said.
He had indicated that the company will provide necessary skills training to allow workers to retain jobs.
“As fate would have it, we are now looking to divest and we’ve met with an interested investor and signed an agreement that will see GKB leasing this packaging plant and transforming it into a modern machine shop. I want to make it clear that the workers who are employed will be absorbed by the company. So you can rest assured that your jobs will be secured. From the government level, we’ll also make two months’ pay available to you to assist with the transition,” Minister Mustapha assured.
Chief Executive Officer of Guysons Group of Companies, Faizal Khan, during the meeting with the staff to be transformed, told the workers, “We will give you the necessary training so that your transition can be as smooth as possible.”
“…What we intend to do here is pipe and oil field service work. I’ve spoken at length with the minister and the President mentioned on no less than four occasions “make sure you look after the people at the Enmore Packaging Facility and the people of Enmore. I heard you are very hard-working people…” he stated.
During the announcement last week Wednesdays, Senior Minister in the Office of the President with responsibility for Finance Dr Ashni Singh said that as a government, and even in opposition, his party had “committed to righting the grave wrongs that was done to sugar producing communities in Guyana.”
Stating that Enmore is one of the communities that felt the brunt of the wrong that was done to sugar producing communities when four estates were closed, government sought to deliver on the promise of ensuring that communities return to economic activities.
“…the mobilization of this investment within Enmore is not by accident or by chance it is as a result of direct effort at the level of the President to ensure that we mobilize a significant investment in Enmore and we will be doing more of the same not just in Enmore but in all of the former sugar producing communities whose economics were devastated by the closure of the sugar industry,” he disclosed.
“This is a massive investment! It will be US$7.5 million initially… the immediate task is to get what used to be the processing facility into operation,” President Irfaan Ali remarked at an event held on the sidelines of the International Energy Conference and Expo last week when the announcement was made.
The Enmore estate is one of several that were closed in 2017 under the David Granger-led APNU+AFC government. However, the Skeldon and Enmore estates were briefly reopened and some cane cutters were re-employed to demonstrate to potential buyers that the estates were viable and as such could be sold as going concerns.
Speaking on the revitalisation, Ali, a few weeks after taking up his post as President, told this newspaper that his government has to start from scratch and is now focussed on redeveloping farmlands in order to deliver on its campaign promise to reopen shuttered estates since the former administration left the industry in ruins.
