The Guyana Agricultural and General Workers Union (GAWU), once again, finds it necessary to respond to Mr Gobin Harbhajan letter titled “Knowledgeables had 23 years to change the face of GuySuCo” which appeared in the September 24, 2017 edition of the Guyana Chronicle.
At the outset, we wish to advise the Mr Harbhajan that letters emanating from GAWU on the sugar industry are authored by the Union and that we stand behind every word written and every assertion made. We do not employ highly paid writers or communication trained persons to express our positions and stances. We wonder whether Mr Harbhajan can say the same.
While Mr Harbhajan argues that we aren’t factually supporting our assertions. It seems he hasn’t been keenly reading our letters. Certainly had the regional councillor done so, he could not have been making such laughable statements. Here is a dose of reality, Mr Harbhajan, if GuySuCo produced 300,000 tonnes of sugar in 2017 at US$450 per tonne then the industry’s revenue would be just over $29B. If the industry’s packaging plants are maximized sugar revenue would be even higher. That mentioned sum taken together with the $9.5B realizable from the Skeldon Co-Generation plant, would see total revenue reaching $38.5B. Such sums are more than sufficient to cover the industry’s costs with all estates operating.
On the cost side, Mr Harbhajan, you should know that 70 per cent of costs are fixed which means whether you produce 174,000 tonnes, as the industry is targeted to produce this year, or 300,000 tonnes a great lot of the costs remain the same. In the latter case, however, average cost would be far lower than it would be should this year’s most recent target is realized. Similarly, there would also be likely reduction in strikes as more canes and less vines, grass and weeds would proliferate cane fields thus reducing incidences of price disputes. Certainly, it sounds, from our point of view, that is a most desirable situation, Mr Harbhajan?
While the erstwhile gentleman continues to espouse privatization arguing that no worker would be laid off and justifies this by calling attention to the worker turnout. It seems, the letter writer is not following the news as not too long ago, GuySuCo called attention to worker turnout far in excess of the 50 per cent statistic Mr Harbhajan refers to. Furthermore, even with 50 per cent worker turnout, through the use of the mechanical cane loaders workers’ productivity is doubled. In essence with optimal utilization of those costly loaders, turnout could be really 100 per cent. Furthermore, how does Mr Harbhajan relate his privatization call when in a short while two (2) more estates are threatened with closure and thousands will join the misery-filled lives that have beset the people of Wales.
Mr Harbhajan then goes on to talk about the Skeldon project which he labels as a “millstone”. But it is this same “millstone”, Mr Harbhajan that has several buyers, some who are known to his party, lining up to acquire it. Certainly, it serves to undermine the letter writer’s credence and assertions regarding the estate. The writer then goes on to speak about the Government support to sugar. But, for reasons best known to him, he inexplicably fails to explain how is it that despite a $32B investment by the APNU/AFC Government, sugar production has dropped by 25 per cent in the last two (2) years? Clearly, from our point of view, those in charge of the industry are steering the ship into dangers and unforgiving waters. We nevertheless recognize that Government support to sugar cannot be infinite and thus our plan to turn the industry around with some support from the Government into the medium term. We again urge the letter writer to get from his ‘high placed’ friends a copy of our submission to the Government. There he would see how we propose that the industry finance its modernization.
As we have seen with many other electoral promises, Mr Harbhajan is now denying that his party, in the elections campaign, promised sugar workers a 20 per cent wage rise. Such a promise has been a rallying call of the AFC for several years now. In fact the November 05, 2011 Kaieteur News quoted then AFC Presidential Candidate, Khemraj Ramjattan in reference to the 8 per cent wage rise approved by the then Government as saying “…we would make the workers happier with 20 per cent…”. Similar utterances, Mr Harbhajan, were also made during the 2011 and 2015 elections campaign. But like so many other commitments, they are now exposed to be mere political gimmicks.
We are then serenaded about the positives of private ownership as the days of Bookers are recalled. It seems Mr Harbhajan maybe is not acquainted with the realities the workers faced in those times. In those times, poverty stalked the sugar belt as the workers faced daunting challenges while the sugar barons lived ‘life in London’ on their sweat, blood, and tears. It was in view of such a stark reality, among other reasons, that influenced the nationalization of the industry. That decision, Mr Harbhajan was fully supported by the workers and their organisations. Certainly, if life were as good as you made it out to be in those days the workers would have been up in arms at nationalisation.
Mr Harbhajan then goes on to call attention to the sugar levy which he says pushed Bookers out of sugar and Guyana. Again, the letter writer lack of knowledge stands nakedly exposed as the sugar levy came to an end in 1996 and not 2002 as he asserts. Please we urge you again Mr Harbhajan to become acquainted with the facts before you ‘write’.
GAWU maintains that if the industry can be made viable in private hand, it stands an even better chance of doing so under state-ownership.
