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‘Top-heavy’ GuySuCo management discourages workers — GAWU President warns

– CEO Singh says company undergoing human resource audit

GuySuCo CEO, Sasenarine Singh.

Kaieteur News – President of the Guyana Agricultural Workers Union (GAWU), Seepaul Narine, is warning the Guyana Sugar Corporation’s (GuySuCo) and its newly appointed Chief Executive Officer (CEO), Sasenarine Singh, that the practice of ‘top-heavy’ management will soon run the industry into trouble. Narine gave the stark public warning to Singh on Monday, while a guest on a GlobeSpan24X7 panel discussion with moderators Charles Sugrim and Dr. Asquith Rose.
Expanding on his position, the GAWU President pointed to what he claims to be the recent hiring of some 30 staffers at head office at pay scales above their counterparts in the industry.Narine told the moderators while he has no difficulty with employees getting reasonable conditions, including pay, “one has to compare the equality of it.”

GAWU President, Seepaul Narine.

To this end, Narine noted that “if we continue to employ people at higher pay than those in the system and the established pay grades, we are going to run into trouble; that is my warning.”
Narine cautioned that GuySuCo needs to be careful and said, “Mr. Singh as CEO needs to take account of that and to address it; it cannot be allow to be perpetrated; it will create unfair conditions.”
Cognizant of the need to retain skilled personnel with competitive salaries, he noted that “if you are going to bring others in, then those in the system at that level, also have that value.”
In a direct appeal to Singh, the GAWU President exhorted that the industry has to manage its human resources better and “don’t be top-heavy” since this could demotivate the entire workforce. Notably, he claimed that the employment of additional staffers at increased wages was not done by the Board.

Narine, who has been pressing the corporation to return to the bargaining table with regard to stalled wages and salaries talks, conceded that every benefit to worker is a cost to the business and as such, GAWU has been putting forward proposals to increase revenue generation. He posited that the industry has to pursue a more diversified portfolio by turning to more value-added products such as smaller sized packets of packaged sugar, as against the 120 pounds bags sold traditionally.

Contacted for a comment yesterday, CEO Sasenarine Singh said that it is “unfortunate” that statements related to are being made, particularly because they “are lacking in facts”.
“Those who are making the reckless allegations that there have been a number of new people making the company ‘top-heavy’ have to provide evidence,” Singh said. He related that, at present, the company is conducting a human resource and skills audit at headquarters to see whether there is in fact top heaviness, as inherited from the operations as run under the previous political administration, and whether the corporation has “the right skill sets and persons are placed in the right positions.”

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@Prashad posted:

Sase has one hard job. I don't envy the man at all.

Who will envy a man who have no history of turn around any company ?

with the exception of turning paper at H&R Block.

Django
Last edited by Django

April 21 ,2021

Source

‘We cannot pay what we don’t have’ – GuySuCo CEO to sugar workers



While the Guyana Sugar Corporation (GuYSuCo) is “willing and ready” to negotiate salary increases with aggrieved sugar workers from the Blairmont, Albion and Uitvulgt Estate, it simply ‘cannot pay what it does not have’.

This is according to Chief Executive Officer (CEO), Sasenarine Singh, who spoke with the News Room on Wednesday.  Sugar workers from both estates have been engaged in a week-long protest concerning protracted wage/salary discussions that go back to 2019.

Despite assurances from the Agriculture Minister, Zulfikar Mustapha, https://newsroom.gy/wp-content/uploads/2021/04/Sase-Singh-750x430.jpgthat the government would engage GuySuCo on workers’ benefits, the protest continues.

“This is an extremely sensitive issue, sensitive time in the industry. We [are] rebuilding an industry that was broken and for you to do that, it requires a strategy, which the industry has already developed. It requires money, resources, which clearly GUYSUCO has a shortage of,” the GuySuCo CEO told the News Room at his La Bonne Intention (LBI) office.

He explained that in 2020, the sugar company made a loss of $3.8 billion and a majority of its funding went towards wages and salaries. Added to that, Singh said that Guyana was producing sugar at an extremely higher cost than it was being sold.

All of these factors, he stated, contribute to why GuySuCo is unable to dole out the needed increases.

“We are ready and willing to accountable, to be transparent and to practice good corporate governance, but we cannot pay what we do not have,” the CEO said.

Additionally, the CEO said that while negotiations are a priority for GuySuCo, it cannot “rush” into it, as management is answerable to a Board of Directors and shareholders who play key roles in the decision-making process.

Singh also made clear that he will not engage in negotiation discussions “in the media.”

“It is quite unfortunate that some stakeholders have decided to negotiate in the media. I cannot negotiate in the media, and I will not negotiate with the media, and whoever wants to negotiate in media, I say to them, go ahead.”

Further, the CEO urged the sugar workers to be patient and end the strike action as they aim to find common ground on the issue.

“To the workers of GuySuCo, the 7,400 workers, this is a message to you. We are doing everything possible to make this negotiation complete successfully so that this is a win-win situation for everyone.”

Just three months after GuySuCo was allocated the sum of $3 billion, the government returned to the National Assembly on December 28, 2020, requesting an additional $4 billion.

While the previous $3 billion was to recapitalise the three estates closed by the former APNU+AFC government at Rose Hall, Skeldon, and Enmore, the $4 billion was slated to support the recapitalisation of the three operating estates at Blairmont, Albion and Uitvlugt.

Mustapha had told the National Assembly that because of the neglect, the three operating estates were subjected to over the last five years, critical capital works had become necessary.

Additionally, the 2021 National Budget makes provisions for $2B for ‘critical’ capital works at the estates. The government has started the process to reopen sugar estates closed by the former government.

Django

In 2020, GUYSUCO spent 102% of its earned revenue to pay wages and salaries

Dear Editor,

The Management of the Guyana Sugar Corporation (GUYSUCO) wishes to clarify several inaccurate public statements that were recently disseminated by President of the Guyana Agricultural Workers’ Union (GAWU). GUYSUCO does not intend to negotiate in the press with the Unions but we wish to bring to the table at all times, factual clarifications to some of these public statements being made by the Union’s President.

After August 2020, the executive organisational staffing at Head Office was increased by a net of two (2) persons; not thirty (30) that is being alleged by the Union Boss.

Currently there is an employment freeze of senior staff at Head Office until the Human Resource and Skills Audit process is completed. That Report is expected to be submitted by the end of June 2021.

The GUYSUCO compensation package is governed by the Hays Job Evaluation Methodology and the Corporation has been unable to meet the recommended rates for the senior staff since 2013 (seven years), which means that the Corporation’s rates are below the average senior management salary rates in the public service and private sector.

The current management acknowledges that it inherited in August 2020, a debt owed to the GAWU Credit Union and the Union for dues totaling G$113 million.  Since then to now the Corporation, with the limited cash flows, has paid approximately G$140 million to the GAWU. The Corporation formally committed to the GAWU to pay a further G$2 million per week to clear the inherited debt.

In 2020, the Corporation made a loss of approximately G$3.8 billion.  This information is available to the GAWU.

This meant without financial support from the Shareholders, the Corporation could not have met its wages bill. The information is also available to the GAWU.

The 2017 Independent Audited Financial Statement of GUYSUCO, made it absolutely clear that by way of the Vesting Order of December 30, 2017 called the GUYSUCO (Transfer of Property) Order 45 of 2017, “all moveable and immovable property of Wales, Skeldon, East Demerara and Rose Hall” were transferred to NICIL.  But the uniqueness of this dysfunctional transaction, as stated in that public document, acknowledged that “the liabilities of the vested estates remained with the Corporation”.  Further, there is nothing “fairly straight forward” about a business that has the External Auditors declaring that “the validity of the going concern basis on which the consolidated finance statements are prepared is dependent on the continued support from the Government of Guyana”.

The Corporation remains firm in its commitment to collaborate with the Unions to bring a final resolution to the workers compensation issues. To that end, the Corporation invited the Union to a meeting on May 4, 2021.

GUYSUCO’ s management remains firm in its commitment to working with all stakeholders, especially the three (3) Trade Unions in the industry, to build a resilient business with an empowered workforce in an environment that is healthy and safe for all. The Corporation is desirous of arriving at an amicable solution acceptable to all stakeholders. Nonetheless, GUYSUCO encourages factual discourse to advance the cause of the 7,400 workers and Guyana.

Sincerely,

Indira Badal

Senior Public Relations Manager

Guyana Sugar Corporation Inc.

Django

"The current management acknowledges that it inherited in August 2020, a debt owed to the GAWU Credit Union and the Union for dues totaling G$113 million.  Since then to now the Corporation, with the limited cash flows, has paid approximately G$140 million to the GAWU. The Corporation formally committed to the GAWU to pay a further G$2 million per week to clear the inherited debt."   With this kind of Math it is not surprising that GUYSUCO is bankrupt.

T

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