No clear plan for GuySuCo’s $30B bond – GAWU

…adds proposal submitted for wages and salary increases

The Guyana Agricultural and General Workers Union (GAWU) has flayed the Guyana Sugar Corporation (GuySuCo), and by extension the Government of Guyana, for not putting forward any clear plan as it relates to utilising the $30 billion borrowed for the revitalisation of the closed sugar factories.
“As the year ends, the GAWU remains concerned that, so far, the stakeholders nor the public, have seen a clear plan regarding the $30 billion borrowed towards the revitalisation of the remaining GuySuCo estates. On this score, we are aware that Finance Minister Winston Jordan, in responding to questions posed to him in the National Assembly, advised that the bond is aimed mainly to acquire two co-generation plants; to upgrade existing factories to produce plantation white sugar; to build storage and packing facilities; and to contribute to two years of general operational costs. Interestingly and conspicuously absent, were any mention of investments in the cane fields to improve productivity,” GAWU Assistant General Secretary Aslim Singh noted.
He made the statement at the Union’s end of year press conference on Friday at the Union’s High Street, Kingston Headquarters.
Singh explained that during the first quarter of 2018, the Union has an engagement with then CEO Paul Bhim who informed them that some $11 billion would be spent on capital works across the three estates namely Skeldon, Rose Hall and Enmore with about 70 per cent of that sum being utilised in the fields.
Earlier this year, the Government through the National Industrial Commercial Investments Limited (NICIL) Special Purposes Unit (SPU) acquired the $30 billion bond from at an interest rate of 4.7 per cent. The Union said despite being a part of the Government and having the responsibility of the sugar industry, Agriculture Minister Noel Holder seems clueless as to the happenings in the industry.
“It seemed to us that apparently Minister Holder is out of the loop regarding the monies that have been borrowed which are backed by a sovereign Government guarantee and secured by the assets of NICIL – which incidentally belong to the people of Guyana. The Agriculture Minister’s tirade, as it were, is yet another demonstration of how the affairs of the country are addressed by the Granger Administration. It also, once more, brings into focus the Administration’s more than confused approach to the sugar industry generally,” Singh said, as he read from a prepared statement.
GAWU said it remains supportive of plans that would secure the sugar industry and safeguard its viability.

However, their support is predicated on sound, credible and well-thought-out plans adding that the seeming secrecy shrouding the plans for the bond borrowed with a sovereign guarantee is something that causes them to feel uneasy and worried.
“If it is there is a plan, as the Minister of Finance says, we urge those in authority to share those plans with a view to having full discussions as all stakeholders are desirous of having a successful sugar industry,” the Union noted.
Zeroing in on the responsibility for the advancement of the sugar industry, GAWU noted that there seems to be confusion in the Government’s camp in this regard. It referred to the move by the A Partnership for National Unity/Alliance For Change Administration to strip GuySuCo of its assets relating to the closed estates and transferring them without liability to NICIL as well as the shares.
“The clear confusion regarding sugar was also manifested when we saw musical chairs being played by the Ministers of Agriculture and Finance, with both gentlemen denying they had ministerial responsibility for the industry. Then suddenly and without any forewarning, the Agriculture Minister announced he was in charge of GuySuCo though no explanation, as far as we recall, was ever provided as to how the contradictions were resolved,” the union noted.
Since the SPU took over the affairs of the closed estates there have been a number of standoffs between GuySuCo and them. The major one being the issues surrounding the refurbished LBI club house in which the Corporation’s headquarters are located.
“Our Union, from press reports, also recognised that there seems to be some degree of confusion within the Administration regarding the sugar industry. That, it seems, has now spilt over into the industry’s management and which will not help in confidence building and commitment, essential elements for success. At this time, the GAWU reiterates that the situation cannot be allowed to continue the way it is as it is not in the interest of anyone, especially the workers. The GAWU calls on the Government to apprehend the sad situation that is prevailing. It is time to end the tug-of-war,” the Union said.

Increases
Over the past weeks, several sugar workers took to the streets calling for an increase in their wages and salaries, adding that the last increase was over four years ago. GuySuCo announced that this year, it would be awarding its workers a bonus but GAWU has since indicated that the bonus falls under the Annual Production Incentive (API) scheme which has been suspended for a few years now.
“While happy about this development, workers remain concerned that the Corporation has yet to consider the Union’s claim for a 15 per cent rise-in-pay retroactive to January 1, 2018. At the end of the day, the bonus while welcome, at the same time, will see workers in 2019 earning the same rates-of-pay that were approved since in 2014. At this time, the GAWU and GuySuCo have already concluded discussions on the non-wage benefits. Those engagements resulted in a few improvements being secured,” the Union noted.
GAWU said it has since submitted a counter-proposal regarding the bonus which GuySuCo has committed to examining.