GAWU President, Komal Chand address to 2007 Enmore Martyrs Day Rally

Allow me to join the Chairman in welcoming you to this annual event – the observance of the 59th Anniversary of the slaying of the Enmore Martyrs. Fifty-nine years ago, on this fateful day, five youthful sugar workers – Lallbagee, Pooran, Rambarran, Surujballi and Harri were gunned down and fourteen of their colleagues injured by the order of the plantocracy. These young men were protesting against the atrocious working conditions so prevalent throughout the sugar industry, meagre pay and generally poor and unhealthy living conditions.

Comrade Ashton Chase described aptly the situation of the sugar workers at the time. In his book, “A History of Trade Unionism in Guyana 1900 to 1961″ the renowned author said “The origin of the strike was first of all general expression of dissatisfaction by the workers with their miserable conditions of work and life, notwithstanding the existence of recognized unions. Secondly, the failure of the recognized unions (MPCA and BG Workers league) over the years to really alleviate the harsh conditions under which they worked or to secure even a fair improvement in their real wages. Thirdly, dissatisfaction with the new system of work for cane cutters, to wit, cut and load. Fourthly, frustration with the machinery set up with the approval of the recognized union for resolving difference at estate level. And last but not least, the demand for recognition of a new trade union under a militant leadership to represent their interest”

Since the martyrdom of the five, the landscape of the sugar industry has been transformed. The sugar planters were forced to make concessions improving the working conditions of the workers. However, there were two significant changes in the industry, its nationalization in 1976 and in the same year the recognition of a Union of the workers’ choice – the Guyana Agricultural and General Workers Union (GAWU). Had the sugar industry not been nationalized the expatriate owners certainly over the years especially in the years of serious challenges, would have significantly contracted the operations of the industry. GAWU which agitated and supported the nationalization of the industry remains watchful that the industry is not re-privatized.

One of the major tasks of the industry is that it must now battle for its survival following the infamous EU decision to slash the price by thirty-six (36) per cent cut on its annual import of 167,000 tonnes of our sugar. The price cut of 5.1 per cent commenced last July, will continue with further price cuts for four (4) years until 2010 by which time the aggregate price cut of thirty-six (36) per cent would be implemented. Using today’s exchange rate, the industry stands to lose approximately a quarter of its revenue or G7.2B annually. Similar price cuts were also imposed on seventeen (17) other African, Caribbean and Pacific (ACP) sugar producing countries, and, would result in several industries either being contracted significantly or ceasing operations altogether. In the Caribbean, Jamaica and Belize are expected to reduce their levels of production, while, Trinidad and Tobago and Barbados are most likely to cease sugar production by the time the price cut is fully implemented. St Kitts has already closed its three century old industry. However, our industry is advancing in an opposite direction. It is seeking to produce within the next five (5) years some 450,000 tonnes which is approximately an additional 150,000 of its current production through maximizing on the economy of scale. Also, the construction of a new state of the art factory at Skeldon, capable of producing annually 110,000 tonnes of sugar would play a pivotal role in the attainment of the industry’s new production goal. The new factory is scheduled to commence operation before the end of the first quarter of next year. Within a few years the continuing land expansion at Skeldon by cane farmers and Guysuco would ensure the availability of adequate cane supply to fully utilize the new factory. While focusing on higher level of production to alleviate the impact of the price cut, the industry must continue to further its valued added drive. It is pleasing to learn that the – Demerara Gold – is gaining wide acceptance in the Caribbean and other foreign countries. The growing market demands that the Corporation increases and maintains its capacity to produce this blend of sugar.

Last February, the European Union committed by an Agreement it signed with the Ministry of Finance the release of 5.6M Euros or US$7.39M to the Guyana Government. The Agreement is in keeping with the decision of the European Union to provide support in the form of Accompanying Measures with respect to the National Action Plan. We are pleased to hear that the full disbursement would be channeled by the Government to the Sugar Industry. We wish to call on the Government to provide the industry with all future disbursements from the EU arising from support of the Action Plan.

The sugar industry needs to address the establishment of a Distillery and a Refinery if it were to become a viable entity in today’s world. No longer can the industry continue to be a mere raw sugar producer.

A Distillery in Berbice would be able to consume quantities of molasses which are dumped every year. Not only will additional revenue be realized by the Corporation, but the new distillery will create jobs. A sugar refinery will give Guyana the opportunity to supply the Caribbean market with refined sugar. The Caribbean imports approximately some two hundred thousand (200,000) tonnes of refined sugar per annum. There is a significant market which our industry can easily exploit, especially with the protection afforded by the Common External Tariff (CET). The export price of raw sugar in the European Union is 496.8 Euros per tonne, while the price for refined sugar is 631.9 Euros per tonne. It is quite evident that from the figures the industry would be able to garner substantial revenue from sugar it is already producing and also from the increasing sugar production in the future.

Comrades, we should not forget, the sugar industry is not only about its 18,000 workforce, it is the main pillar of our country’s economy. It accounts for fifty (50) per cent of Agricultural GDP, seventeen (17) per cent of National GDP, the largest net foreign exchange earner, etc. From its immense annual revenue just under $30B a significant proportion is supporting numerous Guyanese business enterprises through the spending of monies by the Corporation itself and its large workforce. Soon it will be providing at least 10MW of electricity to the National Grid thus contributing among things to a cleaner environment.

Comrades, it is almost six months since the implementation of Value Added Tax (VAT) which has replaced eight (8) taxes namely – Consumption Tax, Travel Voucher Tax, Service Tax, Premium Tax, Hotel Accommodation Tax, Entertainment Tax, Purchase Tax and Telephone Tax. VAT according to its pundits is a more equitable tax. However, what has been discerned over the past months is the unusual increases in the prices of a number of commodities. Even the prices of zero rated items have moved unexpectedly upward. There seems to be a combination of factors attributing to this phenomenon. There is high profit to mark-up by importers and retailers and/or an ascendency of the price at the source. The preponderance of the increase it would seem lies with the importers and the retailers. This brings into question the need for protective measures to restrain the prices of basic goods and relief measures like significant increases of the income tax threshold. Further, employers should recognize the need to improve workers’ purchasing power and therefore, grant an adequate wage/salary adjustment.

Comrades, last month we observed Arrival Day, which marked one hundred and sixty-nine (169) years since Indians landed to work in the sugar plantation in our country. This year we are also observing activities to mark the 200th Anniversary of the Abolition of the Slave Trade. History reminds us of that sordid event which tells of millions of Africans who perished along the way in the countless journeys made by European Slave Traders, bringing captive slaves to the Americas and the Caribbean. Both slaves and indentured labourers made immense contributions to the development of our country. The heinous crime committed on the slaves, undoubtedly requires our condemnation and the call for repatriations is justified. We, therefore, support a call on the ex-European powers to provide repatriation having profited from the inhumane slave practices they conducted.

With respect to crime we wish to repeat what we said last May Day, I quote “Guyana, in common with the larger Caribbean territories, is victim to the enterprise of deviant criminal behavior – gun crimes, assaults, murder and increased abuses of women and children. Again GAWU would like to see the involvement and more support from communities in collaborating with the police to quell this ongoing situation. FITUG unions must also engage the Police on this issue of crime, crime prevention and detection. We are all involved – most obviously. No representative organisation worth its salt should sit idly by when women, children, employees, the needy and homeless, the sick and the minorities are either exploited or abused and injured.”

Comrades, in conclusion as we pay respect this year to the Martyrs. Let us all dedicate ourselves towards the defense of our sugar industry. We do not support the closure of any Estate. We believe that with the dedicated support by the stakeholders, the doomsayers who denounced the Skeldon Modernization Project and who wish to see the industry fail and collapse would be shattered in their expectations.

We wish to say that workers as a stakeholder will do everything to defend the industry, to promote the different measures that will make the industry viable not only because of their jobs and livelihoods but also in keeping with their pride. We wish that the administrators of the industry would be equally dedicated to promote the well being of the industry through better control of its resources and prudent management.

Long Live the Enmore Martyrs!

Long Live the Trade Union Movement!

Long Live the Cooperative Republic of Guyana!