Reprinted from Caribbean Net News
caribbeannetnews.com

Guyana sugar workers receive favourable wage offer

Saturday, November 18, 2006

by: Gordon French
Caribbean Net News Guyana Correspondent
Email: gordon@caribbeannetnews.com

GEORGETOWN, Guyana: The Guyana Sugar Corporation (Guysuco) and the Guyana Agricultural Workers Union (GAWU), which represents some 70 percent of sugar workers in Guyana, this week signed an agreement for a 5.5 per cent pay package for sugar workers for 2006.

Both sides met on Monday and during that meeting, GAWU indicated that they would accept the 5.5 percent pay hike for this year, turning down an optional two-year offer of 5.75 per cent increase for 2006 and 5.50 per cent for 2007.

The union was first seeking an agreement which would have seen workers receiving increases of 5.75 per cent for 2006 and 5.25 per cent for 2007 and an escalator clause for 2007 that would have provided for an additional 0.75 per cent to every 1 per cent increase of the inflation rate over 5.25 per cent for this year.

The union stated that the escalator clause would cover any unforeseen rise in cost of living with the introduction of Value Added Tax (VAT), to come on stream from January 1, but Guysuco refused the inclusion of the clause.

Negotiations between Guysuco and GAWU commenced in September and up to October, the two sides had failed to reach agreement. The union then resorted to strike action twice within a two-week span to press for the 5.75 per cent increase.

Guysuco’s Human Resources Director, Jairam Petam, indicated that the strike action at this time is extremely costly to the industry given the additional challenges posed by the US$37 million losses in revenue by the European Union price cuts among others.

Guysuco’s Chief Executive Officer Nick Jackson added that currently the Corporation is committed to completing the Skeldon project which is crucial to the sustainability of the industry.

He stated that because the company's revenue is falling and cost rising, Guysuco can ill-afford any additional expenditure. Jackson stated that if Guysuco gave a 5 percent increase every year its wage bill will increase from US$75 million to US$1 billion.

Guysuco estimates that it lost in excess of US$3 million as a result of the recent industrial actions.

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