Kwakwani workers back merger proposal
Guyana Chronicle
June 21, 2002
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Stemming from its commitment to resolve the crisis in the bauxite industry, particularly the situation facing the operations at Kwakwani, Mr. Jagdeo and a team of high-level Government officials, including Education Minister, Dr. Henry Jeffrey, Chairman of the Guyana Geology and Mines Commission (GGMC), Mr. Robeson Benn, and Mr. Ron Webster, visited the area yesterday.
The team met BERMINE workers at Kwakwani and members of the Kwakwani community, the Government Information Agency (GINA) said.
Among issues discussed at these meetings were the future of the industry; the Government's proposal to give financial assistance and to provide payment to those workers opting out of the company, and others who are to be paid pensions; and the welfare of the community in the context of the current difficulties and the impact on the operations at Kwakwani.
President Jagdeo, in his meeting with BERMINE employees, said the bauxite industry has faced many constraints, including competition internally and internationally, market loss, poor management of the local operations, lack of vision and the fragmentation of the industry.
Adding to the downfall of the industry was the Alcoa company of the U.S. pulling out of the 50 per cent ownership of the Aroaima Bauxite Company (ABC) and leaving the Government as the sole owner of ABC, he said.
GINA said President Jagdeo told workers he was willing to make the next move in resuscitating the industry based on their proposals.
A merger between ABC and BERMINE had earlier been proposed to put the operations on a firmer base and being able to retain about 60 per cent of the workers, the agency said.
Subsequently, out of the dialogue between President Jagdeo and Opposition Leader, Mr. Desmond Hoyte, a Joint-Bauxite Resuscitation Committee was established and this body was told by a group of workers led by Mr. Lincoln Lewis, union representative, that the merger was not a viable option. GINA said that when invited to yesterday's meetings, Lewis replied that he was unable to attend.
It said that on February 14, last, a `workers group' came up with another proposal that involved a 60 per cent takeover by the workers at a cost of US$300,000, which hopefully would have seen growth in the industry. It was also proposed that should the transshipment facilities be closed, they would use self-discharging ships, GINA said.
But workers yesterday said they were ignorant of the Lewis workers' proposal and overwhelmingly supported a proposal to merge ABC and BERMINE, the agency said.
The President urged the workers to think carefully about what they wanted since this was a matter that would decide their future.
"I am prepared to hand it over for free. But my people say it would not work. It would collapse within a matter of months. But if you the workers say hand it over, I will give it over for free!"
"There is no politics in this. It is your life we are talking about," President Jagdeo said, adding that the Government's primary purpose for intervening in the crisis was to avoid the significant unemployment that will result if the industry collapses.
GINA said that in response the workers "expressed tremendous gratitude" to him for delinking the situation from politics and being a true Guyanese leader. Those at the meeting dismissed the proposal of handing the operations over to them and called for the implementation of an agreement reached between themselves and the Government earlier.
The agreement is as follows:
* BERMINE Board will meet to ratify a proposal from Viceroy Shipping to allow third party ships continued use of mooring facilities in the Berbice River.
* Any employee of BERMINE who wishes to voluntarily leave will receive payment calculated in accordance with the severance formula contained in the Union Agreement, with the said cost being funded by the Government.
* Management believes that subject to the continuance of the ALCOA contract and the payment of the voluntary severance cost by the Government, BERMINE will be able to achieve a break-even position this year.
* The Government will take over certain responsibilities at Kwakwani that are funded by BERMINE. These include water, schools, hospitals and electricity.
* The Government expressed its willingness to receive and consider the management/employee proposal to take over BERMINE.
* Workers of Kwakwani urged that a merger of ABC and BERMINE be considered now.
* Workers of Kwakwani requested that the Linden/Kwakwani road be fixed. The Government committed to fixing it at the end of the present rainy season.
* The President committed himself to visiting both Everton and Kwakwani in upcoming weeks.
* Both sides welcomed the cordial and co-operative nature of the discussions, which resulted in the decision taken to address the current situation.
President Jagdeo also renewed his commitment to the community that the Government would fund the provision and maintenance of the social services in the area.
He also stated the Government's offer to provide interested residents and workers with house lots, at no cost to the workers, either at Kwakwani or on the coast. This offer is also open to residents of Everton. Residents greeted this with tremendous applause, GINA said.
Two committees have been established to interact with the Government on issues of concern to the workers.
President Jagdeo is scheduled to visit Aroaima's operations at Everton next week as part of the commitment he made to workers earlier, GINA said.