A sixteen (16) person team from the Guyana Agricultural and General Workers Union (GAWU) which included union leaders and workers representatives from Skeldon, Rose Hall, East Demerara and Wales Estates yesterday (December 14, 2017) met with officials from the Sugar Special Purpose Unit (SPU), a body under the auspices of the National Industrial and Commercial Investment Limited (NICIL). The GAWU requested to meet the SPU in order for the Union to become au fait with the Unit’s plans as it hopes to assume managerial responsibility for Skeldon, Rose Hall, East Demerara and Wales at the beginning of next year (2018).
The SPU Head, Colvin Heath-London informed the Union’s delegation, in his discourse with us, that in his observation the estates identified for closure and sellout are indeed viable. He shared that when certain costs are excluded from the estates overall costs, their cost of production are generally in keeping with international norms. The SPU Head described Skeldon as a ‘gold mine’ which is far different from the phrases GuySuCo used to describe the estate.
The SPU emphasized, at this point in time, it was operating at a disadvantage. In an interview appearing in the December 07, 2017 Guyana Chronicle, the SPU head said GuySuCo:- “…moved the machinery, they have not given us the list of names made redundant in order to re-employ the workers, they want to damage the entity before handing it over”.
The SPU said it was seeking to begin re-employment of some of the displaced workers possibly early in the new year as it seeks to resume operations at the estate under its management from second crop (July) next year. In the early stages, the SPU would be concentrating on improving the functioning of the factories as well as to rehabilitate the cultivations in preparation for the 2018 second crop. On this score, the GAWU pointed out that at some estates it was possible to have a 2018 first crop, which the SPU said it will look into as the picture becomes clearer. They shared that they have submitted a budget to the Government to sustain their operations.
Also, at this time, the SPU is soon to enter into an agreement with Pricewaterhouse Coopers to be engaged in conducting a valuation of the assets of the estates that will be in the SPU’s charge as well as to prepare a prospectus for investors who may be willing to invest in the estates. The valuators, we understand, will also evaluate the proposals that would be received from potential investors to determine their suitability. Here, the GAWU pointed out that with the rehabilitation works going on, the value of the estates could very well improve which the SPU acknowledged as being correct. The SPU did advise us too that it will continue to operate the estates until such time that suitable buyers could be found.
At Wales, the SPU said that the estate’s factory was largely cannibalized and, therefore, diversification into non-sugar crops would have to be pursued and the Unit would also seek investors in this regard. In terms of the Wales cane farmers, the SPU said it was working along with them to find ways to continue in cane production and to transport their canes to Uitvlugt.
Our Union used the opportunity to point out what we believe were some of the factors which inhibited the proper functioning of the estates. We did point out too that we felt that divestment was not the best approach as we felt that the estates could be nurtured back to a viable state. We also shared with the SPU that we have challenged the legality of the decisions by GuySuCo and the Government and in response the SPU said it would abide by the ruling.
The SPU did share with GAWU that it may not be able to retain all the displaced workers. Our Union, naturally, queried what plans the SPU had for those workers. On this, the SPU said that initially it would have a job bank of the displaced workers to match their skills with extant vacancies. Our Union also asked about training in alternative skills for the displaced workers, on which the SPU said it hadn’t concretized any position at this point.
GAWU felt that the meeting was very productive and, undoubtedly, the workers who attended felt a little more at ease as they recognized a more hopeful picture painted about the future. The Union committed itself to assist in whatever way it can and in the coming weeks and months, the parties agreed to remain in contact and to have further engagements as the SPU’s plans unfold.
