As the debates continue in political circles and on the sugar estates under whose government more sugar workers lost their jobs, a 2021 commissioned International Labour Organisation (ILO) Study shows it was the People’s Progressive Party/Civic (PPP/C) government. Notably, under the Bharrat Jagdeo administration.
In October 1992 when the PPP/C took over the reins of government from the People’s National Congress (PNC) there were 28,081 workers employed by the state-owned Guyana Sugar Corporation (GuySuCo), according to the ILO study (p. 24).
The study, which gathered data from international and local organisations, more particularly the Ministry of Agriculture and GuySuCo, presents an incisive review of the management of sugar under successive post independent governments.
The report noted when sugar was nationalised in 1976 employment stood at 28,406 (p.24). According to the study, under the PNC government-which was led by President Forbes Burnham (1964-1985), followed by President Desmond Hoyte (1985-1992)- employment was reduced by 325.
However, by May 2015 when the PPP/C lost government, GuySuCo was not only in dire financial straits, but the number of employees was reduced to 16,927 of which 15, 387 were field and factory workers (p.25).
The data shows that 11,154 workers lost their jobs under the PPP government (i.e 28,081- 16,927 = 11,154). This number is compared to 325 under the PNC government (Burnham and Hoyte), and 5160 under the A Partnership for National Unity and Alliance for Change (APNU+AFC).
Management of the estates
At nationalisation in 1976 there were 11 estates located at Leonora, Uitvlugt, Wales, Diamond, Enmore, La Bonne Intention (LBI), Ogle, Albion, Blairmont, Rose Hall and Skeldon.
Overtime, poor management, change in world market prices and the PPP/C government refusal to sensibly adapt, placed greater stress on the industry and economy, because sugar was no longer economically viable and relied heavily on the national treasury for sustenance.
According to the report there has been “a persistent decline in production over the period 1998–2018, during which a deliberate, policy-induced, decline in production took place in the latter part of this 20-year period – from 231,000 tonnes in 2015 to 152,000 tonnes in 2017, 104,641 tonnes in 2018 and 92,232 tonnes in 2019.”
Skeldon, which is in Berbice, was the worst performing estate.
The study stated, “the heavy losses at Skeldon could be attributed to the failed Skeldon Sugar Expansion Project that involved the building of a new and much larger factory and the reorganisation of sugar cultivation in the Berbice region” (p 25).
The Story of Skeldon Estate
Work to build the factory began in 2005 with an expected completion date in October 2007, which was pushed back several times. The factory was finally commissioned in August 2009, two years beyond schedule, sputtered along for a year, then collapsed.
In 2010, then President Bharrat Jagdeo said, if Skeldon Factory failed “the sugar industry is dead.” He admitted, “This is a US$200 million facility… unfortunately, it’s not delivering the results we expected it to. They have too many mistakes going on there.”
Analysts estimated the cost to be higher than US$200 million, given the poor quality of work done, and the necessity of doing required adjustments to make the factory workable.
Former sugar estate manager, Anthony “Tony” Vieira described the situation as a “national disaster of monumental proportions” and called for a “commission of enquiry into the matter.” This was never done.
The ILO report revealed the decline in sugar started in the mid2000s, and is largely attributed “to the loss of preferential prices in the European market in 2006, at which point the November 2005 decision by the European Agricultural Council (EAC) to reduce the guaranteed price for sugar by 36 per cent over a four-year period took effect” (p. 23).
The APNU+AFC Coalition Government
In May 2015 when the coalition APNU+AFC was elected to government they met a cash strapped GuySuCo that relied heavily on Government to bail it out to the tune of billions of dollars.
Between 2016 and 2017, the coalition government closed the Wales, East Demerara, Rose Hall and Skeldon estates.
The ILO report stated the decline of GuySuCo “resulted in a number of responses ranging from management reform to modernisation and restructuring of the industry, but the state of the industry continued to deteriorate…[and] to address the financial situation by reducing production, closing and divesting unproductive estates.” One of the consequences of the decline was job lost.
5160 workers were laid off during the coalition administration as stated in 2021 ILO report, based on information provided by GuySuCo. The figures, presented in the report (p. 31), show 937 workers at Wales, 1531 at East Demerara, 903 at Rose Hall, and 1789 at Skeldon lost their jobs. The categories of workers affected were: 95 senior staff; 31 junior staff; and 4751 workers.
The PPP/C, in Opposition and Government, peddled the story that 7000 workers were terminated. This is not true as revealed in the study.
The average severance paid to the laid off workers during the coalition was: Wales Estate $613,800.00; East Demerara $611, 600.00; Rose Hall $1, 227, 642.00, and Skeldon $1,001,600.00 (p.37).
Finally, the 2021 ILO Study settled the issue of jobs lost under the three administrations (PNC, PPP/C and APNU+AFC). It also revealed sugar experienced the greatest loss in labour (employees) during the PPP/C government, was mismanaged, and the PPP/C’s major investment, the Skeldon Factory, did not yield the anticipated returns.
Read the full Report here:-
https://www.ilo.org/caribbean/information-resources/publications/WCMS_800352/lang–en/index.htm
