First sitting of Arbitration Tribunal held

This first sitting of the Arbitration Tribunal examining the difference between the Guyana
Sugar Corporation (Guysuco) and the Guyana Agricultural and General Workers Union (GAWU) as it relates to sugar workers’ wages and salaries for 2008 was held on (Saturday) September 27, 2008 at the Cheddi Jagan Research Centre.

GAWU is seeking to have a pay increase of 14.25% in order to defend the workers’ purchasing power in light of the rising cost of living. The Corporation is, however, defending its position to peg its increase at 5.25% for the year.

At last Saturday’s session both the Corporation and the Union made substantial opening presentations relying mainly on their written memoranda. The union’s team at the session comprised fifty-two (52) persons the bulk of whom are representatives from the eight sugar estates.

GAWU’s lead person before the Tribunal, Dr. Roodal Moonilal, Industrial Relations Consultant/Development Analyst from Trinidad and Tobago, indicated that at later sessions he would deduce arguments on the following: (1) that the Company can meet the wage claim, given the dynamic international market for sugar and expansive revenue generating initiatives, (2) that the Corporation has been mis-managing its assets, implementing poor labor organization and utilization systems and engaging in significant wastage of resources which if they had not occurred, would have resulted in significant savings to the Corporation and (3) that sugar workers cannot maintain a decent standard of living should the wage demand not be awarded, the industry would suffer significantly from a dwindling labour pool, as a consequence.

He recounted that at the last Arbitration proceedings in 2002, Guysuco portrayed itself as a Company on the brink of collapse claiming that it was unable to afford the increase demanded by the union lest the industry became bankrupt. Dr Moonilal drew to the Tribunal’s attention that this year, as in 2002, the Corporation’s principal argument is its inability to pay. He argued that inability to pay should not be an acceptable reason not to satisfy the union’s claim. He said that there is precedent whereby the Industrial Court of Trinidad and Tobago disagreed with the argument that inability to pay is a justifiable reason to refute a wage demand.

He pointed out that the mismanagement by the Corporation had led to the current state of the Corporation’s poor production level, hence a great restriction on its revenues.

Dr. Moonilal emphasized the impact of rising cost of living on the workers and made reference to the rate of inflation as published by the Bureau of Statistics and the effects this has had on the welfare of the workers and their families.

The Tribunal’s next sitting will take place on October 18, 2008 and the parties have agreed to have two sessions – in the morning and afternoon.

The Arbitration Panel comprises of Dr. Gobind Ganga, Mr. Norman Mc Lean and Mr. Cecil Seepersaud.