Struggling Bosai meets Region 10 officials over planned layoffs

Bosai executives yesterday met with Region 10 Chairman, Renis Morian, and Members of Parliament Valerie Adams-Patterson and Jermaine Figueira to discuss the company’s planned retrenchment of workers attached to the company’s Linden operations.

MPs Valerie Adams (right) and Jermaine Figueira (far right) flank Region 10 Chairman, Renis Morian, at the meeting with Bosai officials yesterday.

It was the second meeting between the Regional Chairman and the Bosai executives, regarding the impending situation. Morian said that the objective behind the meetings is to come up with a “win win” situation for both Bosai and their employees. According to a senior Bosai executive, retrenchment is “the best option right now” given the Company’s present conditions. The official said that since July last year, Bosai has only been operating one Kiln. According to information earlier released by Bosai, the company operated both calcining kilns during the first half of 2014, however, a decline in bauxite sales in the latter half of the year resulted in the company operating only one kiln. This trend continued in 2015, with the company continuing to operate one kiln, with the further decrease in bauxite sales. Among the challenges facing the company according to a senior executive, apart from the decline in sales, is the high cost of freight. “The distance is too far, and these vessels’ capacity is just six or seven tonnes and the customers cannot accept the freight. We used to have a plan for the AGB-abrasive bauxite, calcined bauxite – we were looking forward to getting a transshipment facility, to load to the bigger vessels, like thirty- or forty-tonne vessels – then maybe we could supply Asia with Guyanese bauxite, as a big competition to China’s bauxite, but because of the freight, it was never realized. Even now, we’re trying to convince RUSAL to rent their transshipment facility for us to do another three or four shipments to Asia each year, but they are very difficult, because maybe they see BOSAI as a competitor.” The official expanded further, “the company has always set a target based on production of two kilns – kilns 13 and 14, but since July last year we’ve only been running one kiln. We didn’t consider retrenchment at that point in time, because we expected things to get better, but after months and things not getting better and even in 2015, we were still operating one kiln, so in July we had to shut down production completely in the plant, because the shipment has slowed down, and we’ve got the highest inventory in the history. “Even in 2009, during the world economic crisis, the highest inventory of calcined bauxite was fifty three thousand pounds. At the end of June our inventory of calcined bauxite was 63.57 tonnes and our storage capacity is just 52 tonnes – we’re down to 11.57 tonnes on the ground, which is being contaminated and is resulting in extra cost to us. Once the product is put back to storage there are some losses. It is a very difficult situation.” Morian suggested that Bosai look at reducing the workers from twelve-hour shifts to eight hours, instead of retrenching, and asked how such an arrangement would affect the company. In response to that, the Bosai representative assured that such an arrangement would not affect the company much, but that the problem would be the workers, who would stand to lose forty percent of their current earnings, which they would not be willing to accept. Morian also suggested ‘’voluntary separation”, but a counter proposal by Bosai was early retirement, which would see those workers receiving all their benefits. Six or seven persons would be eligible for early retirement it was pointed out. The Regional Chairman questioned what would be the problem with voluntary separation, and whether Bosai was afraid of losing half its workforce to other companies in the mining sector. Bosai’s representative acknowledged that such a thing could indeed happen, to which Morian opined that the company’s bargaining strategies ought to be more realistic. “I want a win win situation, I want Bosai to win and workers also, because there are other mining companies out there that are ready and willing to take those workers. But we don’t want that to happen, we don’t want to see the bauxite company fold, this company has been a part of this town for a long time – a part of the history and landscape of Region Ten.” Both MPs, Adams-Patterson and Figueira, also called on the Bosai representatives to seek ways to address the current situation and come up with amicable solutions, and to look at final performance assessment of workers, before considering retrenchment. “We don’t want another strike”, Adams-Patterson declared. Bosai’s representative assured that performance and skill would be considered in determining which workers are retained and which are retrenched. He also promised that an initialized auditors’ report, could be made available for perusal as requested by the stakeholders, even though the auditors’ report is confidential. At the end of the meeting Morian advised Bosai to meet with the Union again, and wished both parties successful negotiations. (Enid Joaquin)