Issue#2 Volume#38
Combat
EDITORIAL
Trying times for the workers of Guyana
The recently held Labour Day observances, which were characterized by a united march and rally for the second consecutive year, put in perspective aptly the challenges and difficulties which are being faced by the working people. The various trade unionists all called to attention the plight of the workers and their families, and the difficult choices that have to be made more often these days. Quite rightly, they concluded that Labour Day 2017 saw the workers confronted by declining living standards, a reduction in real income, job losses, and dimming hope for the promised ‘Good Life’ In recent weeks, the media has reported quite often about the weakening Guyana dollar. While there have been attempts by the Administration to deflect from the obviously worrying news, those attempts have been largely futile. The fact remains that the dollar has devalued by not less than twelve (12) per cent in the last two (2) years. In these circumstances, we see efforts by the Government seeking to influence exchange rates, which will serve to make a bad situation worse, as official statistics have told us that our Foreign Exchange reserves are on the decline. This is not good news, especially for small economies such as Guyana’s. In such circumstances, the cost of many imported essential items have shot up and are evaporating any increases in pay that may have been received by workers in the past two (2) years. In fact, some workers, are now forced to cut back on consumption, and therefore they are being pushed closer to, or in some cases over, the poverty line. This is indeed disturbing news, especially in view of the declining rates of moderate and extreme poverty recorded over the last quarter century. Alongside the foreign exchange crisis, the workers and their families have new and heavy burdens to fetch on their already overburdened backs. Nowa-days, they are required to pay taxes on previously untaxed necessary and essential goods and services. They must also contend with new taxes or hiked tax rates; the restriction of certain types of goods; increased costs for government services, among other things. It was not surprising that inflation between January 2016 and January, 2017 was as high as 2.4 per cent, considering that inflation previously was a fraction of a per cent, or in some cases negative. The new tax measures are also taking their toll, as the Ministry of Finance recently informed that tax revenues for January, 2017 were 42.7 per cent higher when compared with January, 2016. This is money largely taken away from workers and their families. Continued on page twelve (12)
COMBAT
April-May, 2017
Voice of the Guyana Agricultural and General Workers Union (GAWU)
April-May, 2017
Government ‘State Paper’ on sugar will haunt Guyanese for a long time
Workers, residents, and others of Rose Hall Estate staged a march on May 16, 2017. The people are staunchly opposed to plans by the Government and the GuySuCo to close their estate at year-end. The closure of Rose Hall, among other things, is advanced by the recently presented State Paper on sugar.
The Guyana Agricultural and General Workers Union (GAWU) has examined the Government’s State Paper on the future of the Sugar Industry in Guyana, which was presented to the National Assembly on May 08, 2017. The paper, unsurprisingly, largely confirms what has been widely said by Administration spokespersons in recent times. The GAWU is disheartened that the “hard decisions” - as Minister of Natural Resources, Raphael Trotman described them on Labour Day - will serve to wreck the lives of thousands of ordinary, decent, hard-working Guyanese and reduce vibrant and robust rural economies to a shell of their current selves. The paper does very little to quell our strong and significant concerns about the plans for sugar, which we have registered with the Government and have shared publicly as well. We see the paper as largely a repetition of what we have previously heard from officials of the Government and the Guyana Sugar Corporation Inc (GuySuCo), much of which we had reasons to disagree with. It seems that the Administration’s ploy is to repeat their glaringly incorrect and outrageous conclusions often enough for them to be accepted as the truth. This is indeed unfortunate, as the thousands of sugar workers and the wider Guyanese nation are wiser than the Gov-
ernment seems to think and believe. The Government, in seeking to justify these sad plans, has called to attention the reduction of the number of sugar estates over time, but this is just half of the picture. While factories and estates were consolidated throughout the years, sugar production rose and cost of production declined as a result of economies of scale among other efficiency improvements. This time around, however, the Executive is promoting policies which will contract production while the effects on cost are not yet clear. The paper goes on to state that the Government “…is expected to demonstrate prudent management of public resources under its control”. This is a statement we wholly endorse, and thus we are perplexed that while the Administration is sometimes saying the right things, it continues to take imprudent decisions. We see the plans for sugar exacerbating the already trying social situation in our country. The problems that will be spawned from the ideas contained in the sugar paper will require large sums from the Treasury to address and remedy, and this course seems to be most imprudent. Continued on page three (3) PAGE ONE