Issue #2 Volume #43
Combat Voice of the Guyana Agricultural and General Workers Union (GAWU)
April-June, 2022
GuySuCo records worst 1st crop Real incomes performance in history Editorial
In the period between April 2021 and April 2022, the Guyana Bureau of Statistics recorded that prices within Georgetown rose by 7.5 percent. The Bureau further indicated that 2.8 percent of the growth was attributed to increases recorded in 2022. Looking at the composites of the inflation basket, food prices, the Bureau informed, had risen by 13.8% within the same period, (4.4 percent in 2022). The data informs that inflation is at its highest over the past five (5) years. In Guyana, similar levels of inflation were recorded during the 2008/09 period when a global food crisis had taken hold. As in that period, the world economy is caught in the throes of yet another crisis. Globally. countries across the world are facing similar challenges occasioned by the COVID-19 pandemic, the conflict between Russia and Ukraine, climate change, the monopolization/consolidation of shipping companies, among other things. For the ordinary Guyanese workers and their families, the substantial jump in prices is most challenging. Engagements with workers have identified a marked increase in the cost of several important and necessary commodities. Workers have related the increases they are forced to pay are far more than officially reported data. We have learnt that the prices of some food items have seen increases of over 50 percent, even in instances of locally manufactured goods. For poorer families, they are essentially being priced out of the market. The marked jump in prices comes as Guyana is recording its highest economic growth in history. Our country has the enviable statistic of leading the globe in economic expansion. Yet, at the same time, our people are finding it more and more difficult to cope with life. It is certainly oxymoronic! It is acknowledged, to a large extent, the escalating costof-living is occasioned by external events. In this case, we are an unwitting victim of a much larger global machination. Even in the instance of locally produced goods, increases in the cost of inputs such as fertilizers, fuel, and other materials are fuelling increases. Recognition is also given the public policy responses to seek to alleviate cost-of-living burdens. Applying duties and taxes on imports at pre-pandemic prices is costing the Government billions in lost revenues. Similarly, removal and/or reduction in taxes on several important items are also adding up to billions more. Despite the proactive response from officialdom, consumers are reeling from massive hikes in prices. Several suspicions have arisen as to whether these savings are really passed on to customers, or they are trapped within the profits of business owners. Similar concerns were also shared by several officials of Government in recent times.
- urgent examination of industry required
The 2022 first crop production was the worst in the history of the Guyana Sugar Corporation Inc (GuySuCo) since its establishment in May 1976. This year, the industry struggled to produce 13.076 tonnes sugar during the crop from a lowly-set target of 20,261 tonnes. At the estates, sugar production was as follows: Estate
Target
Actual
Shortfall
Albion
9.078
7.488
1,590
Blairmont
6,888
5,521
1,367
Uitvlugt
4,295
66
4,229
Industry
20,261
13,076
7,185
At Uitvlugt Estate, a damaged gear at the mill turbine brought the crop to a premature conclusion, resulting in a paltry 66 tonnes sugar recorded. At Albion and Blairmont Estates, production went far in excess of their set production weeks, yet the estates did not attain their targets. It was later learnt that the estates harvested canes earmarked for the second crop 2022. Even this attempt was clearly unsuccessful, as production still fell below anticipated production.
Additionally, direct transfers to citizens have been pursued in some cases. This is intended to assist vulnerable, dispossessed and struggling groups within the society. This is laudable, and undoubtedly will assist. However, it is widely recognised that all strata of society are not spared the ravages of the economic storm that is presently raging. Calls are growing for a more pronounced response from the Administration. To this end, there has been the hiking of the National Minimum Wage to $60,000 monthly. This equates to a 36% rise in the minimum wage.
As anticipated, the workers and the weather – the usual scapegoats – were lined up to offer feeble and unconvincing justification for the poor performance. However, GuySuCo’s own data revealed the absurdity in the defense it sought to mount. At Albion, for instance, during the crop, there were 4 strikes aggregating to a loss of 499 mandays. This contrasts with 11 strikes in 2021 and 17 strikes in 2020 that resulted in 3,309 mandays and 6,636 mandays lost respectively. Clearly, the data does not support the GuySuCo management’s contention.
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The sugar company management has bemoaned workers’ attendance to work. This, however, contradicts the reality that
nearly all workers are qualifying for crop benefits, which requires them to work certain number of days during the crop. Instructively, however, the Corporation, whether deliberately or not, has ignored the conditions in the fields. The absence of canes and the presence of more vines and grass are constraining workers’ earnings while requiring them to exert additional energies to harvest canes or undertake other field tasks. GuySuCo’s own data, again, confirms that field productivity is declining. The cane yields, over the last three 1st crops, clearly shows a sharp decline: Estate
2020
2021
2022
Albion
58.6
63.9
40.0
Blairmont
57.9
64.1
39.6
The Corporation has sought to justify the situation by blaming an absence of tillage. Indeed, tillage is an important element of operations, but it is not the only element. Even when tillage is accomplished, the results are dreadful. At Blairmont, for example, fields tilled and planted in 2021 and harvested during the recently concluded crop yielded 64.60 TCH. This is well below historical trends of at least 100 TCH for plant canes. The data speaks to wider agronomic issues and an apparent deviation from a scientific approach and long-standing practices. There are concerns in respect of the timely availability of resources for operation, which are key to growing good-quality canes. Clearly, the current management of the industry needs to be examined. Some months ago, Vice President Dr Bharrat Jagdeo had alluded to the need to strengthen management. Not much was heard since, but this requires urgent attention, in our view. It is obvious to us that the industry is deficiently managed, and we urge the Administration to act with alacrity to remove those incapable of performing their tasks, and to retain competent individuals who can guide the industry forward.