Stabroek News
June 2, 2001

The two trade unions representing bauxite workers have denounced Alcoa's proposals to restructure the Berbice Mining Enterprise (Bermine) and Aroaima Bauxite Company (ABC) and have drafted proposals of their own to be sent to President Bharrat Jagdeo.

Among the proposals are: bringing in a strategic investor--one they say has already shown interest; bringing in an investor to assist in the marketing and to get calcining going again.

The unions are also proposing there be assurances of safeguarding of jobs; continued existence of Bermine as a company; and payment of royalties and taxes by the company.

"We're going to oppose [the Alcoa proposal]. It's only the smoke you're seeing now. We're going to oppose it down to the wire," President of the Guyana Bauxite and General Workers Union (GBGWU), Charles Sampson, told reporters at a press conference yesterday. The briefing was held jointly with the National Mining and General Workers Union (NMGWU).

A joint statement was issued condemning the restructuring proposal put forward by Alcoa, the parent company for ABC.

Sampson pointed out that for a number of years Bermine did not have to be dependent on central government for funds, unlike its sister company the Linden Mining Enterprise.

The problem Bermine was facing was the lack of capital injection into the company to purchase equipment, Sampson said. But for this the company would be profitable.

He felt the bauxite industry in the world was going through a crucial period and it would be unwise to "give away" the assets.

He asserted that the local industry belonged to the people of Guyana and the government had a duty to support it.

Sampson stated that the government was acting as though the Alcoa proposal was a done deal even though a bauxite committee was set up in consultation with the opposition PNC REFORM. "We are going to resist very feverishly any attempts by government to thrust Alcoa on us," he said.

Noting that Prime Minister Sam Hinds was scheduled to travel to the Everton operations to meet the workers today, Sampson questioned the motive behind the visit.

There were also questions to be answered by the PNC/R on the recent development in the industry, he stated. "I'm sure the people in the PNC know what is happening. We will give them some time to respond," he said, noting that the statements on Alcoa by government were made just a few days ago.

According to Sampson, government had not consulted with the union or any major stakeholder but did so with Alcoa.

He held the view that the government was not keen on consulting and said this was evident with the privatisation of the Guyana Electricity Corporation and the failed Beal deal. "We don't have confidence in the government in dealing with the Guyanese people. Bauxite is a national asset and they have to involve all," he stated.

Consultant to the bauxite unions, Ramon Gaskin, gave figures to show ABC paid nothing to the government since its presence here in 1989, while the state-owned Bermine did. Gaskin felt the government was willing to look at feasible alternatives to the Alcoa proposal.

The union's proposals are being put together and should reach President Jagdeo by next week.

In the joint statement by the two unions read by President of GBGWU's Everton branch, Keith Payne, it was noted that Alcoa's proposals did not constitute a recapitalisation of ABC because the plan to convert the massive ABC debt of US$57 million to equity would not put a cent of equity capital into the operations.

"There is no intention to inject capital into Bermine but to take over selected operating assets," Payne said.

He described as "eye pass" the demand for Bermine's bauxite reserves to be turned over to ABC for free.

The unions felt that Alcoa's proposal to reduce the existing work force of 954 in both companies to 400 was a callous attempt to marginalise workers and put them on the bread line.

"This is the imperialist arrogance of Alcoa that disrespects our people and sees them only as a nuisance and a mere item of expenditure interfering with super profits," the unions stated.

They pointed out that the questions of transfer pricing, inter company dealing and the involvement of J.P. Knights, Viceroy and ABC (Barbados) were not properly tackled in Alcoa's proposal. Alcoa was insisting on not paying royalties and duties, the statement said.

The unions said the idea of selling ABC down the road to BPU Reynolds was another effort to further destabilise the local industry.

"The international bauxite industry is undergoing radical change and Guyana must retain the capacity to be flexible and to respond to market changes," the statement read.

It was pointed out that a genuine strategic alliance was necessary to save jobs, the industry and Guyana as a whole.

Prime Minister Hinds recently disclosed that government was in favour of the proposal to consolidate the bauxite mining operations of ABC and Bermine, stating that "half a loaf was better than no loaf at all."

The General Workers Union (GWU) issued a press release yesterday seeking clarification on whether the position given by the Prime Minister was representative of that of the government.

"The statement demonstrates a classical example of disrespect and disregard for the stakeholders in the industry, notably the NMGWU and GBGWU," the GWU release said.

It continued: "The GWU calls on the workers of Bermine, workers of Guyana generally, and citizens of the contiguous communities to support, unreservedly, the unions in the struggle against the brazen intentions of the Prime Minister and his ilk."