1 Nov 2009
GAWU outlines facts regarding the operations of Guysuco
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Guysuco’s Contention |
The Facts |
| The Union used data to distort the grim realities which confront the sugar industry | The data used by the Union was extracted from the Corporation’s 2008 Annual Report. |
| The Union presented Guysuco’s position with respect to the withdrawal of its three (3) per cent offer out of context | GAWU reiterates the withdrawal of the 3% offer is an act of provocation. Prior to Arbitration in 2008, and 2002 the Corporation’s offer was 5.25% and 4.5%, respectively and both were never withdrawn |
| The Corporation’s net revenue position provides a better picture of what was earned by the Corporation | Guysuco’s published letter of October 30, 2009 confirmed higher net revenue indicating G$28.9B in 2008 and G$28.2B in 2004 despite production being 100,000 tonnes lower than 2004 and freight costs being 38% higher in 2008. Guysuco’s 2009 budget indicates a hefty decline in freight charges by approximately 51% from G$3.7B to G$2B although there will be a higher level of sugar exports. |
| A major contributor to the loss experienced last year was the significant increases in the prices of fuel and fertilizers | The Corporation expended G$9.5B on materials and services last year inclusive of fuel and fertilizers. This year the Corporation projects to spend G$7.7B |
| A substantial portion of employment costs vary with the level of activities such as cane production, sugar production, land preparation and planting. | The explanation that employment costs vary with cane production, sugar production, land preparation and planting upholds the Union’s submission regarding the sum of a 1% wage increase. |
| Diamond is increasingly being affecting by urban expansion and LBI/Diamond Estate is the most uneconomical of the Guysuco Estates, in part due to the distance of the Diamond cultivation from the LBI factory | The rate of return from the Diamond cultivation notwithstanding the transportation cost is far superior than what it would be wish respect to the proposed marginal lands. Let’s have the projected yields, etc from Guysuco’s study with respect to the marginal lands to be rehabilitated. |
| The Corporation is expending extensive resources to rehabilitate and retool the Demerara estates noting that Guysuco is investing US$12M to realize “Project Gold” at Enmore | The US$12M for the Enmore Packaging Plant is provided by the EU through the Guyana National Action Plan. The extensive rehabilitation has become necessary because of neglect and purposeful, negative actions in the past years which were aimed at downgrading the performance of some of the Demerara Estates. |