FITUG Press Release
FITUG says: economic growth needs to be translated to the promised ‘Good Life’
The Federation of Independent Trade Unions of Guyana (FITUG) has recognised, from the 2018 Mid-Year report, that Guyanese economy expanded by 4.5 per cent during the first half of 2018. The reported growth is the highest in recent times and is more than double the economic expansion recorded in 2017. For us this is a significant turnaround in our economic state-of-affairs which the report said was attributed to broad-based growth.
The FITUG while happy that the economy continues to show positive signs notes that the growth was realized when the sugar, rice and gold sectors contracted; and when our fisherfolk confront a ban on catfish exports to the US; and when shrimp prices have tumbled forcing one major processor out of business; and our forest enterprises have to contend with impassable trails and roads; and one of our two (2) bauxite producers stand to be gravely affected by sanctions on its parent company; and when construction grew by over 13 per cent but yet sand production, a major ingredient, fell by more than 50 per cent. The report confirmed too that our forest products are still exported at the primary stage, something we recall how Government officials had railed against when they were in the Opposition. The economic growth also comes at a time when our balance of payments has significantly deteriorated and foreign reserves are at their lowest point in recent times. The economic expansion comes at a time when tax revenues have increased markedly indicating that the working-people have to contend with higher levels of taxation. The Federation, and we are sure many Guyanese, wonder how much of the reported growth is to do with activities related to oil and gas. Though we have not produced, commercially at least, a drop of oil from our country newly-found oil resources, from all appearances, it seems to us that our country has already been caught in the throes of the infamous ‘Dutch Disease’. We sincerely hope that this is not the case as we have seen several experts warn of the pitfalls of going down such a slippery slope.
While we are indeed pleased that the economy continues to grow notwithstanding several challenges and difficulties, the FITUG is most dismayed to conclude that those fruits of growth are not tricking-down to the ordinary people. As we have reiterated, time and again, the Guyanese working-people have seen burden after burden placed on their already overburdened backs. We noted that the report indicated inflation for the first half of this year was 0.9 per cent. From our own experiences and interactions with workers, this figure does not seem to match the reality on the ground. The increased prices of fuel, something which the Minister of Finance Winston Jordan said needed an innovative approach but still remains unaddressed, has seen workers having to pay increases in the cost of public transportation, which we must add as far as we are aware were not approved by the relevant state body, but which our hapless people have no choice but to pay. The increased transportation costs have obviously had a knock-on effect on the cost of other goods as well.
The FITUG was hopeful that the report would have addressed the employment situation but dismayingly it has remained conspicuously silent. With thousands laid off in the sugar industry alone and many others being shown the door elsewhere, the situation for the working-class does not appear as rosy as we want to paint it. Today, it seems to us that our country has found itself in a situation of jobless growth. This we hold is not a good situation and would only serve to exacerbate inequality. History has shown us the consequences of such developments and they have been less than pleasing. Certainly given the reported improvements in the economy, the Government is more than capable now of bringing ease to some of the burdens of our people have had to face. Our working-people will more than welcome such developments especially at this time. Serious attention must also be given to addressing the bothersome unemployment situation especially when thousands of our compatriots remain jobless and they and their families are facing difficult and trying times.
The boasting of higher economic growth indeed makes nice bold headlines and catchy sound bites but it hardly means anything if our people cannot enjoy the promised ‘Good Life’ – a life where they enjoy adequate earnings and pensions; a life where they feel safe; a life where they can afford to send their children to school and to provide healthy meals; and a life where they can relax and not be burdened about how they must stretch their earnings. The Government can no longer adopt a lethargic approach but must proactively address the real challenges our people must face on a day-to-day basis.
