Sugar Workers down tools

Workers across the sugar belt, yesterday (September 11, 2007), proceeded on strike action in response to Guysuco’s offer to increase wages and salaries by 3% for 2007. The strike has crippled operations on Guysuco’s five (5) estates and its eight (8) sugar factories.

Since March 30, 2007 the Union submitted a demand for a 12% across-the-board wage/salary increase amongst its thirteen (13) claims. The Corporation and the Union have held seven (7) meetings beginning on July 17, 2007. In response to the Union’s 12% demand the Corporation countered with an offer of 3% for 2007 and 3.5% for 2008. The Union declined to bargain for 2008 prior to reaching an Agreement for 2007. In response to the Corporation’s 3% offer the Union cited the substantial increases in the cost of living and alluded to the inflation rate which as reported by the Bureau of Statistics stood at 12.2% as at June 30, 2007.

At the meeting on Monday September 10, 2007 between the parties, the Corporation while insisting on its 3% offer suggested 6.5% increase for this year, since this would be equivalent to last year’s inflation rate. Note the official rate according to the Minister of Finance in his 2007 Budget Presentation was 4.2%. The Union sought clarification from Guysuco as to whether this year’s inflation rate would be equivalent to next year’s increase. The Corporation failed to offer any clarification.

With respect to the Corporation’s Finance Director assertion that the “strike would cost the company millions in exports to Europe or the sale of 3,000 tonnes of sugar,” this is a red herring. Guysuco has a long period in which to supply its quota of sugar to Europe and its sugar production over a two (2) day period is far less than 3,000 tonnes. In fact, Guysuco average daily production since the commencement of the current crop is approximately 1,175 tonnes.

While indeed the Corporation was surprised by the timing of the strike it is appropriate to point out that the workers were most upset at the Corporation’s basement offer hence their strike action which the Union upholds. The Union is cognizant of the challenges faced by the Corporation. However, the significant decline of the purchasing power through the mounting increases in the prices of a number of important commodities must be mitigated by the provision of reasonable increases in wages and salaries. Note the Corporation has alluded to the Union to its dwindling work force and high rates of absenteeism. Should it fail to address reasonable wage/salary hikes the situation will continue to deteriorate and this will have a deleterious effect on the industry as a whole.

The Union wishes to assure the stakeholders of the industry that it will strive to find a settlement to the dispute providing the Corporation approaches the negotiations with a view towards providing an acceptable offer. At ongoing negotiations the Union hopes that a settlement would be reached and to this end the Union has advised its members to resume work on (Thursday) September 12, 2007. Both the Union and the Corporation have accepted an invitation by the Ministry of Labour for a conciliatory meeting, which will commence at 10:30h under the Chairmanship of the Chief Labour Officer, Cde Mohamed Akeel at the LBI Training Building, East Coast Demerara.