Bittersweet sugar industry

the Guyana Sugar Corporation (GuySuCo) has once again hinted its intention to approach the Government for another bailout from the public treasury. There is no doubt that a decision by the Administration to accede or not will have a major impact on the lives of thousands. Compounding to the difficulties of the sugar industry is the fact that over the past months, the nation has unfortunately been witnessing the deterioration of industrial relations between the major players in Guyana’s sugar industry – namely GuySuCo and the Guyana Agricultural and General Workers Union (GAWU). Such a situation is distressing for workers, considering that it is their future that is in the hands of these major players. The difficulties being experienced by GuySuCo are not new to the industry but it will take a strong economic plan and meaningful consultation to bring this industry out of its constant financial woes. The sugar industry will have to undergo thoughtful transformation to make it a viable industry.

It is quite refreshing that President David Granger during his most recent programme “Public Interest” indicated that Cabinet has received the report of the Commission of Inquiry (CoI) into the sugar industry and has assured that there will be full consultations with the Opposition and with the workers before any action is taken about the future of the sugar industry. To quote him directly, “We are committed to a consultative process, we are also committed to a humane process and there is not going to be any action which is going to be injurious or harmful to the interest of the working people of this country.” The Head of State has also assured that while the bailout for the sugar industry will be costly on the treasury, a conclusion on the fate of the sugar industry is not going to be arbitrary or unilateral.

However, moving towards consultation with the Opposition, workers and civil society is something Opposition Leader Bharrat Jagdeo had called for since January of this year, while addressing hundreds of sugar workers who are on the breadline when the closure of the Wales Sugar Estate, on the West Bank of Demerara takes effect later this year. As a matter of fact, Jagdeo during a meeting with the affected sugar workers had called for a public debate on the sugar industry which remains one of the largest employers of the Guyanese population and was still one of the largest foreign currency earners.

However, while the President has made this announcement, the issue of trust arises. At present, the issue of trust is very thin, considering that the CoI did not recommend the closure of the Wales or La Bonne Intention estates but yet Government went ahead and confirmed those closures.

If we are to move forward with the workers’ interests at heart, then all parties should put politics aside and seek to have an industry which is viable, resilient and profitable. This consultation should not be just a showpiece or public display of lip service but rather meaningful contribution to the sustainability of the deteriorating sugar industry.

Guyana Sugar Corporation (GuySuCo) has made it clear that it is in a dire financial situation and GAWU has made it clear also of its demands for workers. Neither of the two has shifted its position, and as such, a compromise for an acceptable deal for workers was never reached with respect to the fight for Annual Production Incentive (API). These major players have always been at loggerheads and not much progress was made in any of their previous negotiations.

In moving forward, all parties should return to the drawing board on the future of the sugar industry, and consultation and a public debate is a good place to start. We are therefore holding the Head of State on his word for consultations.