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GAWU named as major contributor to downfall of GuySuCo

A small number of Wales Estate factory workers who refused to work Tuesday to protest the likely merger of their factory with the one at Uitvlugt, West Coast Demerara.

A small number of Wales Estate factory workers who refused to work Tuesday to protest the likely merger of their factory with the one at Uitvlugt, West Coast Demerara.

The Guyana Agricultural and General Workers Union (GAWU) has been named as one of the major contributors to the downfall of the Guyana Sugar Corporation (GuySuCo).

A recently completed Commission of Inquiry into the sugar industry said that the Union drove a hard bargain with regards to pay increases and bonuses which contributed in no small part to GuySuCo’s current financial status.

GAWU represents a majority of the 17,000 workers in the sugar industry with others under no representation or being represented by another union.

“GAWU’s insensitivity to the realities of the sugar industry, especially its deteriorating financial position and other challenges. This reflected in the unrelenting union demands leading to escalating labour costs with negative repercussions on the morale of the management team and gives the impression of a chaotic environment in the industry,” the report stated.

It was at the time listing ten main factors that led to sugar’s decline.

Other factors includes mismanagement of resources, unavailability of funds, political influence and failure to demonstrate appreciation of the “national role of GuySuCo.”

The report noted that cane cutters earn as much as $2.4M annually which works out to just about $200,000 per months. Cane transport earned $2.9M per year being the highest paid, while the lowest being $870,771 per annum for weeding.

“Furthermore, the current very costly set of bonuses and incentives which should be anchored on higher attendance at work and higher productivity continued to be paid despite the fact that attendance has been dropping, production has been declining and significant losses being incurred,” stated the report.

The COI recommended the privatization of GuySuCo as one of the steps forward and the state divests itself of all assets, activities and operations associated with the sugar company.

When the report was presented to the House, Agriculture Minister Noel Holder stated that the recommendations in the report does not reflect the final decision of Government.

He made it clear that government is seeking the widest consultation possible since GuySuCo “has reached a point of no return.”

“It can remain in business by either two ways increased subsidies or borrows…Widest possible consideration and all stakeholders on chartering the course for the industry.”

  • Pedro

    About time, the true wages of the sugar worker. There is no doubt that they work hard, but they are paid well, not the pauper wage, GAWHOO, always tries to pretend they are being paid.The wage, plus the several bonuses they are given for politically contrived, and reajusted targets, have for over a decade completely ignored ,the obvious fact that GUYSUCO could not support the growing, and growing, cost of labour and the reducing, production, with the price bomb the EU threw into the calculation, with a major, staged, price reduction, being paid to GUYSUCO, for their product.
    The PooPyParty and their suragate, GAWHOO, then decided that GUYSUCO would be managed as the source of a compliant voting stock for the PooPyParty, and not as a independent Corporation that has to exist, and prosper, or fail, on its own ability, as do all independent corporations. The results a bankrupt GUYSUCO.
    Yes the PooPyParty and GAWHOO, have both played a major role in the ruin of. GUYSUCO and the 7000 jobs, of their workers and their dependants.

  • The entity was never allowed to be managed properly along strictly business lines.It never had a chance. …….talk about cooking the goose that laid the golden eggs. Obviously, it was more of an ethnic imperative rather than National consideration.

  • ExPPP_Man

    Look at all the unionized industries, they in constant debt

  • KassemB

    Must pin the blame on the other side otherwise the proposed actions will not make sense and keep our extremist base on board