Issue#5 Volume#39
Combat Voice of the Guyana Agricultural and General Workers Union (GAWU)
The sugar bond In recent weeks, the Guyanese people have watched, with sincere apprehensions, the confusion playing out in the public arena regarding the $30B borrowed by NICIL-SPU on behalf of the Guyana Sugar Corporation Inc (GuySuCo). With deep dismay, our nation’s people heard the Minister of Agriculture, Noel Holder, loudly proclaiming that he was simply not interested in the bond. This Minister’s loud bellowing is probably the clearest manifestation of the regard and concern the APNU+AFC Government has for the sugar industry, and more so the thousands of our citizens, young and old, who depend on the industry’s operations and activities. For the Minister to take what can only be described as a lackadaisical attitude to the utilization of the bond in the industry’s interest has completely made him unfit and improper to hold the important post he has in the country. The Minister of Finance, Winston Jordan, apparently seeking to soothe concerns, jumped into the fray and said that once the bond conditions were complied with, the proceeds will be released in quick order. This sentiment, while appearing rational on the surface, brought us nevertheless no closer to the solution. What are these conditions the Finance Minister is speaking about? Who decided on them? Who will ensure that they are satisfied? What’s the role of GuySuCo and of NICIL-SPU? And what mechanism has been put in place to ensure effective and efficient utilization of the proceeds? These are all very important questions that require clear and unambiguous answers. Lest we forget, the bond is backed by a sovereign Government guarantee apart from the assets of NICIL, which now include GuySuCo as well. Loose and slack arrangements, apart from having an egg on your face implication for the country, will see the Guyanese people, today and tomorrow, being saddled with the debt plus interest to bond holders, or will see our citizens having to liquidate pricy assets, probably in a fire-sale scenario, to meet obligations to bondholders. So far, the confusion has revealed that $2B of the $30B has been released to GuySuCo to meet operational expenditure. The release of that sum, like many things in the era of the current Government, has not been without controversy. The media reported that Republic Bank (Trinidad) which arranged the bond had put a halt on further releases after it learnt that the monies released were not used for the purposes intended. Subsequent news reports did inform that the situation has been resolved and the bank has released the brake, so to speak. At this time, with $28B remaining somewhere and the first semi-annual interest payment due not too long from now, the state-owned sugar company is, from all appearances, no closer to using the sums towards the industry’s re-capitalisation. Continued on page two (2) COMBAT 15 Sep - 16 Nov, 2018
15 September to 16 November, 2018
Dismissed sugar workers to receive interest on outstanding monies
Dismissed sugar workers participating in a picketing exercise calling on the Government and GuySuCo to pay their outstanding severance pay
In what could be deemed as a major victory, thousands of sugar workers are to receive interest payments on the outstanding severance payments due to them. At the end of 2017, nearly 5,000 workers lost their jobs following what could only be described as a callous decision to close Skeldon, Rose Hall and East Demerara Estates. Further salt was rubbed in the wound when the Government, which decided to close the estates in the first place, announced that it could not fully fulfill the workers’ severance payments, though prior to that announcement the Minister of Agriculture, Noel Holder, according to the media, had said that sufficient monies were allocated to meet the payments. The Coalition Government, in early 2018, advised that it could not afford to settle its lawful obligations to the workers, and proceeded to pay workers whose payments were in excess of $500,000, half of their entitlements. The GAWU, among others, as critical of the Administration’s decision, and pointed to the Termination of Employment and Severance Pay Act, which was pellucid that the workers were entitled to full payment at the time of their termination.
workers themselves participated in picketing exercises, calling on the Administration to stop being in the breach and to at last settle the outstanding payments.
In spite of the clarity of the Termination Act, the Administration adamantly and foolhardily pressed on and paid workers half of their entitlements, with a commitment to settle the second half by the end of 2018. The approach by the Government, in this case, left a most bitter taste in the workers’ mouths, as they were already jobless and hard-pressed to find new employment. Many of them in fact were forced to utilize their payments to meet their life’s obligations. Several media reports drew to the public’s attention the difficult times that workers and their families were now facing. Apart from that, the
Nevertheless, the matter came up for decision on November 02, and High Court Judge Fidella Corbin-Lincoln, probably recognizing what took place outside of the Court, ordered that the Corporation pay to the workers 6 per cent interest from the time they were severed to the time of judgment, and 4 per cent interest from the time of judgment until the payment is settled. The Judge also ordered that the Corporation settle the payments by January 15, 2019.
In June this year, GAWU moved to the High Court, seeking an order compelling the Guyana Sugar Corporation Inc (GuySuCo) to fulfill its lawful obligation to the workers. The attorneys representing the GuySuCo, maybe recognizing the slippery slope they were on, sought futilely to have the case dismissed. GAWU’s attorney, Anil Nandlall, however, convincingly rebuffed the arguments by the Corporation’s legal representatives. With mounting pressure and maybe as a means to derail the Court proceedings, the Government moved, on October 31 to the National Assembly to secure funds to settle its indebtedness to the workers. The Agriculture Minister, when asked by the Parliamentary Opposition if the funds catered for interest on the outstanding payments, did not offer a response. During the Parliamentary proceedings on the matter, Minister Holder also could not say when the payments would be made to the workers.
Continued on page three (3) PAGE ONE