GAWU credit union to resume business with GuySuCo in July

Last Updated on Wednesday, 24 June 2015, 17:13 by GxMedia

by Zena Henry

Despite $154M in credit union owed by the Guyana Sugar Corporation, (GuySuCo), the Guyana Agricultural and General Workers Union (GAWU) has decided to resume business with the sugar producing entity. This will recommence the second week in July of next month.

The union said it has come to an understanding with the sugar company that it will deduct from workers’ salaries, and the sums will be paid over to the credit union no later than the time frame stipulated in the Memorandum of Agreement between the parties– that is, two weeks within the subsequent month.

When contact was made with the agency, Wednesday June 24, Demerara Waves was told that the actual sum owed to the credit union was over $188M if the workers’ deduction for May was added. “Today, GuySuCo paid over $33M to the credit union taking the sum owed back to $154M,” it was disclosed.

The credit union said it requested the sugar company to “recommence deductions of contributions in favour of the Credit Union from workers’ earnings with effect from work-week, 5th – 11th July, 2015.”

“The Credit Union and the Corporation have agreed to continue to address the settlement of the outstanding sum of money owed to the Credit Union which totaled on 31st May, 2015, one hundred and eighty-eight million, forty-five thousand, eight hundred and twenty-five dollars ($188,045,825).”

It was noted that it is the firm understanding of the Credit Union and GuySuCo that workers’ savings henceforth at the end of each month will be remitted to the Credit Union and thus no further indebtedness to the Credit Union should ever arise, a public noticed stated.

GAWU urged its members to look forward to the continued service of the Credit Union, and hoped to spare no effort to re-authorize the Corporation to facilitate their savings in the Credit Union.

GuySuCo had announced about two weeks ago that they had no money to operate for the remainder of the year and requested some $16B from government. The Chief Executive Officer Rajendra Singh was fired and an Interim Committee was set up to look into the affairs of the ailing industry.

Workers poured in at the GAWU’s headquarters last week to retrieve the money the credit union was holding for them as it appeared at the time, that the credit union’s service would have collapsed. Last week the government release $3.8B to help GuySuCo. The ailing company will return to government and convince them to release more money if needed.