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FM
Former Member

GuySuCo has $82B debt; gov’t appeals to sugar workers to save industry

November 6, 2015 12:07 pm Category: latest news A+ / A-

[File Photo]

[File Photo]

[wwww.inewsguyana.com] – The Government of Guyana is urging all sugar workers and their unions to help in rescuing the industry, which it noted for the first time in years, has reached and surpassed weekly targets.

 

A statement from the government on November 06 encouraged sugar workers to remain committed to their jobs and with the holiday season approaching, to earn as much as they can before the current crop comes to an end.

According to the statement, the Government finds as most disturbing the agitation, mainly by GAWU, for workers to engage in strike action. Sugar workers are asking for a 9% salary increase and discussions between the union and GuySuCo are at a standstill.

“Such action could cripple operations and close down the sugar industry. This is especially alarming and regrettable now that efforts are being made to breathe life into the industry,” the statement noted.

It was noted that the APNU+AFC government has been looking at all options to revive the industry, which was placed in a state of bankruptcy and almost total ruin by the former government with a $82B debt.

Below are the “PERTINENT FACTS” as revealed by the administration:

  • Production slumped from 327,000 metric tonnes in the 1960s to an average of below 250,000 tonnes between 2008 and 2014
  • Under the former regime, the sugar industry never came close to realizing the promised 500,000 tonnes target
  • Between 2009 and 2015 GuySuCo not only failed to make a profit but suffered estimated total losses of $67.8 BILLION
  • When the last administration left office, GuySuCo’s debt burden stood at $82 BILLION

According to the statement, it is for this reason that the Coalition Government supported a Commission of Inquiry into the sugar industry. The interim report has confirmed the poor and declining state of GuySuCo as a result of political interference, poor management and squandermania.

Ten year road map and action plan

According to the statement, after a mere five months in office, the Coalition Government is seeking to put a Ten Year Road Map and Action Plan in place, aimed at returning the industry to viability.

“It would therefore be ill advised and indeed premature to commence wages talks before this plan is considered. Unions that seek to drag the sugar corporation to the table to do so are obviously pursuing a political agenda which unfortunately is not in the interest of sugar workers,” the statement noted.

“Due to its virtual insolvent status under the former regime, taxpayers were forced to dole out $28 BILLION in the last five years alone (2011 – 2015) to keep the sugar industry afloat. With its debt load of $82 BILLION and an expected $5 BILLION needed for capital investment together with anticipated further bailout in 2016, any strike action in the industry would bring sugar finally to its knees.”

In the meantime Government is analysing the interim findings and recommendations of the Commission of Inquiry.

Replies sorted oldest to newest

Stirring the shite pot.

 

Several from different ethnics claimed the Indentured servant were not necessary to save the sugar industry back in1838. Well, if dey really saved it, then they can shut in down.

 

S

The government needs to Trump GuySuco as soon as possible before the creditors come after their assets.  They need to transfer the land to a different company.

 

 

FM
Last edited by Former Member

Government cannot ask the sugar workers to save the industry and ignoring their call for an increase in salary. When government took a 50% pay raise, they didn't negotiate with anyone. Give the bloody people a 10% pay increase to do the work and save the industry. 

FM

You are not addressing the fundamental issue.  The company is under a lot of debt.  It is only a matter of time before creditors come after the corporation's assets in an ABC court.

FM
Originally Posted by seignet:

. . . Several from different ethnics claimed the Indentured servant were not necessary to save the sugar industry back in1838. Well, if dey really saved it, then they can shut in down.

so this is your 'contribution'

 

thank gawd Guyanese voters cut the dicks off bilious skonts like u on 5/11

FM
Last edited by Former Member
Department of Public Information's photo.
Department of Public Information

Friday, November 6, 2015

Partnership needed to save sugar industry - Govt appeals to sugar workers

The Government of Guyana urges all sugar workers and their unions to help in rescuing the industry, which for the first time in years, has reached and surpassed weekly targets.

The Government encourages sugar workers to remain committed to their jobs and, with the holiday season approaching, to earn as much as they can before the current crop comes to an end.

The Government finds as most disturbing the agitation, mainly by GAWU, for workers to engage in strike action. Such action could cripple operations and close down the sugar industry. This is especially alarming and regrettable now that efforts are being made to breathe life into the industry.

Government has been looking at all options to revive the industry, which was placed in a state of bankruptcy and almost total ruin by the former government.

PERTINENT FACTS It is critical that sugar workers know the following pertinent facts:

• Production slumped from 327,000 metric tonnes in the 1960s to an average of below 250,000 tonnes between 2008 and 2014

• Under the former regime, the sugar industry never came close to realizing the promised 500,000 tonnes target

• Between 2009 and 2015 GuySuCo not only failed to make a profit but suffered estimated total losses of $67.8 BILLION

• When the last administration left office, GuySuCo’s debt burden stood at $82 BILLION

It is therefore irrefutable that under that administration, GuySuCo had lost its way.

It is for this reason that the Coalition Government supported a Commission of Inquiry into the sugar industry. The interim report has confirmed the poor and declining state of GuySuCo as a result of political interference, poor management and squandermania.

TEN YEAR ROAD MAP AND ACTION PLAN After a mere five months in office, the Coalition Government is seeking to put a Ten Year Road Map and Action Plan in place, aimed at returning the industry to viability. It would therefore be ill advised and indeed premature to commence wages talks before this plan is considered. Unions that seek to drag the sugar corporation to the table to do so are obviously pursuing a political agenda which unfortunately is not in the interest of sugar workers.

The Government has, for the first time, allowed management to run GuySuCo independently and to make into a top priority a lasting solution to secure employment and also to make the industry profitable.

$82 BILLION DEBT LOAD Due to its virtual insolvent status under the former regime, taxpayers were forced to dole out $28 BILLION in the last five years alone (2011 - 2015) to keep the sugar industry afloat. With its debt load of $82 BILLION and an expected $5 BILLION needed for capital investment together with anticipated further bailout in 2016, any strike action in the industry would bring sugar finally to its knees.Government appeals for the understanding and the full cooperation of all sugar workers at this time of great peril to ensure that production targets continue to be met.

BAILOUT FOR 2015 MAXED OUT The Coalition Government did not create the problems affecting the sugar industry. The blame ought to be placed elsewhere. It is government’s view that any industrial action at this time will place the industry into further jeopardy. Government is regrettably unable to increase the bailout package above the $12 BILLION for 2015 and strike action will not change this reality.

COI FINDINGS BEING ANALYSED In the meantime Government is analysing the interim findings and recommendations of the Commission of Inquiry. GAWU as an integral part of the COI ought to know that industrial agitation is not an option at this time. Government once again implores all sugar workers to steadfastly remain committed to the industry and to partner with management for its recovery.

FM
Last edited by Former Member
Originally Posted by Mitwah:

Sugar workers have to realize that half a loaf is better than  no loaf. This is not the time to strike.

Who seh suh? For sugar workers, there is no auspicious time to strike. New moon or full moon, rain or sun, $82B debt or $0 debt, any time can be strike time. Dem canecuttas does strike fuss and then inform GAWU to send somebaddy to negotiate terms of resumption. From 1947 to now, GIWU and PPP and GAWU conditioned field workers to strike as the main problem-solving tool.

I am betting anyone that GAWU and its members will contradict the OPM statement and go ahead with strikes before the current crop ends. And they will be counting on Bharrat Jagdeo to take up their fight.

As I mentioned before, there is no rhyme or reason in striking in the sugar industry. Nor in burning canefields. As the TIME magazine reported in 1964, canecutters doused cats with kerosene, set them alight and loosed them in canefields to spread the fire. 

FM
Originally Posted by Mitwah:

Sugar workers have to realize that half a loaf is better than  no loaf. This is not the time to strike.

Sugar workers must remember when Jagdeo & Ramotar tried to kill their Union GAWU...Who was there to defend them.

Light a candle for Guyana sugar workers –

Moses Nagamootoo lives

 

LIGHT A CANDLE FOR SUGAR WORKERS

Statement by Moses Nagamootoo

 

The threat by the state-owned Guyana Sugar Corporation (Guysuco) to de-recognise the Guyana Agricultural and General Workers’ Union (GAWU) is intemperate and reckless.

ADVERTISEMENT
 

The media report that Guysuco has notified GAWU that it is considering to end the 1976 Recognition and the Avoidance and Settlement of Disputes Agreement with the union, is an extreme provocation.

This year sugar workers were given not a cent either as wage increase or annual bonus as Guysuco did not achieve its set target. The workers were literally expected to “produce or perish”.

I am shocked that the Government could condone this attack on GAWU and the sugar workers; and that leaders of my party, the People’s Progressive Party (PPP), would expect to be in silent conspiracy with this outrage against the vanguard of the working class movement in Guyana.

I can no longer remain silent. This is a grave national matter, and one of conscience.

I dissociate myself from what seems to be a state-party alliance in sledge-hammering GAWU, judging from the leading role of Dr. N.K. Gopaul, Permanent Secretary in the Office of the President and former acting Head of the Presidential Secretariat, as Chairman of Guysuco,

and Mr. Donald Ramotar, General Secretary of the People’s Progressive Party (PPP), who is a prominent member of the Board.

The sugar workers have been the bedrock of the anti-colonial struggles for independence from Great Britain.

For 28 years (1948-1976) they fought for industrial democracy and won union recognition.

For 28 years (1964-1992) they were in the front trenches for restoration of democratic rule in Guyana.

Their struggles gave birth to the PPP, and were exemplified in the commitment of Cheddi Jagan, the sacrifices of the Enmore Martyrs, Kowsilia, and many others.

No one denies that the sugar industry is in crisis due to a combination of exogenous and internal management factors. Low worker turn-out, work stoppages and inclement weather compounded the problem. But the sugar workers cannot be the only scapegoats for failure.

For many years, I have been associated with the cause of Guyana’s sugar workers and, invariably, marched under their banner in their epic fight for union recognition.

As a young teacher I founded a school to help mainly sugar workers’ children to get an education.

Later, as a journalist, I captured in many feature articles the consistent and unwavering struggles in the sugar belt.

And I can attest that their union has never allowed itself to be intimidated or blackmailed in the past. I expect no more from GAWU which should, with dignity and responsibility, prosecute all reasonable options to end the stalemate in the industry. Strikes must be the last resort.

I also expect Guysuco to re-think its options, and to eschew its intention to de-recognise GAWU.

The de-recognition threat ought to be withdrawn immediately and unconditionally before irreparable damage is done. The Government would do well also to explore all possibilities to give the sugar workers even a nominal wage increase. Zero is an insult, not an option.

I’d like to borrow the poignant words of Ricky Singh, a former colleague of mine, when he wrote several years ago in another context, that we should, as we observe Christmas, “Light a Candle” for our sugar workers.

FM
Last edited by Former Member

These dunces in power need to understand that it is not about sugar workers but really the prevailing wages for labor. Cutting cane is hard work and should be rewarded based on the labor rather than the price of sugar. Let the govt get all those sweet skinned public servants out into the field to fill in for the strikers and pay them cane cutter wages. 

FM
Originally Posted by BGurd_See:

These dunces in power need to understand that it is not about sugar workers but really the prevailing wages for labor. Cutting cane is hard work and should be rewarded based on the labor rather than the price of sugar. Let the govt get all those sweet skinned public servants out into the field to fill in for the strikers and pay them cane cutter wages. 

Hydro seed, why are you being so cretinous?

Mitwah
Originally Posted by BGurd_See:

These dunces in power need to understand that it is not about sugar workers but really the prevailing wages for labor. Cutting cane is hard work and should be rewarded based on the labor rather than the price of sugar. Let the govt get all those sweet skinned public servants out into the field to fill in for the strikers and pay them cane cutter wages. 

Godey Walla do not understand .....

Jagdeo and Ramotar cannot

talk about wages for labor......

after they dragging around

Big Hefty Godey Pension Package and

left the Sugar Industry Broke & Bankrupt.....

 

when the last administration left office,

GuySuCo’s debt burden stood at $82 BILLION

FM
Originally Posted by BGurd_See:

These dunces in power need to understand that it is not about sugar workers but really the prevailing wages for labor. Cutting cane is hard work and should be rewarded based on the labor rather than the price of sugar. Let the govt get all those sweet skinned public servants out into the field to fill in for the strikers and pay them cane cutter wages. 

1.  No one is forcing the cane cutters to cut cane.

 

2.  Their own GAWU boasts that they make US$6,000 annually, equivalent to US$500 monthly, way more than the average Guyanese worker, many who also work in the hot sun.

 

3.  I don't know what kind of capitalist that you are if you think that a loss making company can increase the level of its payroll expenses, this being its largest cost. A strike will merely hasten the decision that Guysuco should either be sold, or shut down.  In either instance sugar workers lose their jobs.

 

 

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:

These dunces in power need to understand that it is not about sugar workers but really the prevailing wages for labor. Cutting cane is hard work and should be rewarded based on the labor rather than the price of sugar. Let the govt get all those sweet skinned public servants out into the field to fill in for the strikers and pay them cane cutter wages. 

1.  No one is forcing the cane cutters to cut cane.

 

2.  Their own GAWU boasts that they make US$6,000 annually, equivalent to US$500 monthly, way more than the average Guyanese worker, many who also work in the hot sun.

 

3.  I don't know what kind of capitalist that you are if you think that a loss making company can increase the level of its payroll expenses, this being its largest cost. A strike will merely hasten the decision that Guysuco should either be sold, or shut down.  In either instance sugar workers lose their jobs.

 

 

It is not about what the company can pay but rather to cost of labor. Demand and supply. If Guysuco must depend on manual labor then they must pay for it. The apnu/afc have made no effort to mechanize during their short tenure in office. Their prime objective was filling their own pockets with perks and 50% raises. And we still don't know how much they are making from kickbacks as there is no transparency and they refuse to go along with Jagdeo in declaring assets. 

FM

Godey Walla, if you agree to declare on GNI

the complete specs of Your Godey.....

 

we will amend the Cummingsberg Accord

so everyone must declare

whatever Godey Walla asking for.

FM
Originally Posted by BGurd_See:
 The apnu/afc have made no effort to mechanize during their short tenure in office.

PPP in power for 23 years and yet you don't blame them.  You blame APNU/AFC, even though they have been only around for 5 months.

 

You must truly have more faith in the ability of APNU/AFC to dramatically transform in 5 months, what the PPP COULD NOT DO in 23 years, than I do.

 

And yes Guysuco can hire workers, and then do what they did in May, and threaten them that they will not get paid.  If they have no cash they cannot pay.  And with gold down big time, the notion that the government has an unending ability to pour cash into a failing enterprise is silly.

 

Druggie Trinidad shut down their sugar industry, so don't think that Guyana cannot go down the same route, especially as it is a considerably poorer gov't.

FM

Govt pegs GUYSUCO debt at $82B

November 8, 2015 | By | Filed Under News 

Government has pegged the Guyana Sugar Corporation (GUYSUCO) debt at $82B and noting that a further bailout is anticipated for 2016, has declared that any further strike action would finally bring sugar to its knees. This is in view of the strikes that the corporation has been experiencing in recent times. The major labour unions are up in arms over Government’s delay to begin effective collective bargaining for 2015 wages and salaries. GUYSUCO has been receiving massive bailouts over the last five years- some $28B- despite its insolvent status over the years. This is coupled with the fact that an expected $5B is needed for capital investment. “The Coalition did not create the problems affecting the sugar industry. The blame ought to be placed elsewhere,” the government said in a statement. “It is government’s view that any industrial action at this time will place the industry into further jeopardy. Government is regrettably unable to increase the bailout package above the $12B for 2015 and strike action will not change this reality.” “In the meantime Government is analyzing the interim findings and recommendations of the Commission of Inquiry,” the statement went on to state. “Guyana Agriculture Workers Union (GAWU) as an integral part of the COI ought to know that industrial agitation is not an option at this time.” ”Government once again implores all sugar workers to steadfastly remain committed to the industry and to partner with management for its recovery,” the statement said. “It is critical that sugar workers know the following pertinent facts. Production slumped from 327,000 metric tonnes in the 1960s to an average of below 250,000 tonnes between 2008 and 2014. Under the former (administration), the sugar industry never came close to realizing the promised 500,000 tonnes target.” It noted that between 2009 and 2015 GUYSUCO not only failed to make a profit but suffered estimated total losses of $67.8B. “When the previous administration left office, GUYSUCO’s debt burden stood at $82B. It is therefore irrefutable that under that administration, GUYSUCO had lost its way.” The release went on to note that the interim report from the Commission of Inquiry (COI) into the sugar industry had confirmed the poor and declining state of GUYSUCO was as a result of “political interference, poor management and squander mania.” “The Government is seeking to put a Ten Year Road Map and Action Plan in place, aimed at returning the industry to viability,” the release said. “It would therefore be ill advised and indeed premature to commence wages talks before this plan is considered. Unions that seek to drag the sugar corporation to the table to do so are obviously pursuing a political agenda which unfortunately is not in the interest of sugar workers.” “The Government has, for the first time, allowed management to run GUYSUCO independently and to make it a top priority (to find) a lasting solution to secure employment and also to make the industry profitable,” the release said, ending with an appeal for sugar workers to stand committed.

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:
 The apnu/afc have made no effort to mechanize during their short tenure in office.

PPP in power for 23 years and yet you don't blame them.  You blame APNU/AFC, even though they have been only around for 5 months.

 

You must truly have more faith in the ability of APNU/AFC to dramatically transform in 5 months, what the PPP COULD NOT DO in 23 years, than I do.

 

And yes Guysuco can hire workers, and then do what they did in May, and threaten them that they will not get paid.  If they have no cash they cannot pay.  And with gold down big time, the notion that the government has an unending ability to pour cash into a failing enterprise is silly.

 

Druggie Trinidad shut down their sugar industry, so don't think that Guyana cannot go down the same route, especially as it is a considerably poorer gov't.

You folks led by the bajan singer were bragging and boasting how you could turn sugar around, pointing to Brazil as a model of what you would achieve once in power. Now it looks like you throw up the white flag. 

FM
Originally Posted by BGurd_See:
 

You folks led by the bajan singer were bragging and boasting how you could turn sugar around, pointing to Brazil as a model of what you would achieve once in power. Now it looks like you throw up the white flag. 

the best way to fix sugar is to sell Guysuco, but as many Indos in the Corentyne and elsewhere see their livelihoods disappear, as did those in Linden, they will scream "black man a kill ahbie" and resume protesting outside the UN with screams of a Rwanda style genocide in Guyana.

 

 

Maybe APNU/AFC will have the testicular fortitude to do as Jagdeo did to bauxite, and ignore his effeminate screams when they do so.

 

Hey Angostura will buy it for molasses, maybe a joint venture with DDL, and shut down all that is not necessary to do so.

 

That way you all can blame Yesu, and the Trinis.

FM
Last edited by Former Member
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

You folks led by the bajan singer were bragging and boasting how you could turn sugar around, pointing to Brazil as a model of what you would achieve once in power. Now it looks like you throw up the white flag. 

the best way to fix sugar is to sell Guysuco, but as many Indos in the Corentyne and elsewhere see their livelihoods disappear, as did those in Linden, they will scream "black man a kill ahbie" and resume protesting outside the UN with screams of a Rwanda style genocide in Guyana.

 

 

Maybe APNU/AFC will have the testicular fortitude to do as Jagdeo did to bauxite, and ignore his effeminate screams when they do so.

 

Hey Angostura will buy it for molasses, maybe a joint venture with DDL, and shut down all that is not necessary to do so.

 

That way you all can blame Yesu, and the Trinis.

Stop blaming the Indians, blame Granger who does not have the brains or brawn to sell Guysuco. Your apnu is not in charge, instruct them to do the necessary deed or stay quiet and take the blame for the party's incompetence. 

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

Stop blaming the Indians,

So why didn't the PPP fix Guysuco if they are so bright?

I don't know that the PPP was bright. But the afc/apnu claimed they had the solution so the ball is now in your court, stop deflecting and come up with the solutions you promised during the campaign.

FM
Originally Posted by BGurd_See:
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

Stop blaming the Indians,

So why didn't the PPP fix Guysuco if they are so bright?

I don't know that the PPP was bright. .

Really, well why then do you scream the Jagdeo rant that the PPP did better?

 

The PPP dumped Guyana into a hole and even Jesus would need more than 5 months to pull it out.

 

In fact billions of dollars in debt its likely that NO ONE will be foolish enough to buy Guysuco.   Blame your PPP for not selling Guysuco at the same time that they sold Guymine.

FM
Originally Posted by caribny:
Originally Posted by BGurd_See:
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

Stop blaming the Indians,

So why didn't the PPP fix Guysuco if they are so bright?

I don't know that the PPP was bright. .

Really, well why then do you scream the Jagdeo rant that the PPP did better?

 

The PPP dumped Guyana into a hole and even Jesus would need more than 5 months to pull it out.

 

In fact billions of dollars in debt its likely that NO ONE will be foolish enough to buy Guysuco.   Blame your PPP for not selling Guysuco at the same time that they sold Guymine.

CaribJ why don't you shut yu rass if you do not understand the issues.

 

JUST shut up.  Please for god sake.

FM
Originally Posted by KishanB:
Originally Posted by caribny:
Originally Posted by BGurd_See:
Originally Posted by caribny:
Originally Posted by BGurd_See:
 

Stop blaming the Indians,

So why didn't the PPP fix Guysuco if they are so bright?

I don't know that the PPP was bright. .

Really, well why then do you scream the Jagdeo rant that the PPP did better?

 

The PPP dumped Guyana into a hole and even Jesus would need more than 5 months to pull it out.

 

In fact billions of dollars in debt its likely that NO ONE will be foolish enough to buy Guysuco.   Blame your PPP for not selling Guysuco at the same time that they sold Guymine.

CaribJ why don't you shut yu rass if you do not understand the issues.

 

JUST shut up.  Please for god sake.

So enlighten me.  What are the issues? 

 

I know that Guysuco is where Guymine was, so should be disposed of similarly.  Sugar workers will have t adjust as bauxite workers had to.

FM

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