In a statement it said this represents an improvement in performance over 2001 when the corporation experienced a loss of $1.2B.

The 2002 performance is attributed to a larger crop and the recent strengthening of the Euro, and according to the release, the corporation nevertheless has sustained a loss for two consecutive years.

The entity, the release added, is fighting a survival battle in the face of declining sugar prices, and the need to reduce its unit cost of production to meet the challenge.

"The most recent victim of these realities in the sugar world is Cuba, where the recent closure of 71 of 156 mills has resulted in more than 100,000 workers losing their jobs. The sugar industry in the entire Caribbean has already succumbed to the new economic realities," it added.

The industry said it recognises, however, that an effort must be made to assist its employees to meet increases in the cost of living and to continue to recognise and reward excellent performance.

To this end, the Board of Directors has approved a two per cent across-the-board, and a 2.63 per cent merit increase for senior management personnel for the year 2002. This increase of 4.63 per cent will cost the corporation $35M, the release said.

The corporation is engaged in wage negotiations with the Guyana Agricultural and General Workers Union (GAWU) and said the latest position is that it has offered a 4.1 per cent increase while the union is demanding 12 per cent.

The other union representing workers in the industry, the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) is yet to begin negotiations on its demand for 30 per cent across-the-board and 3-9 per cent merit increment increases to salaries for 2002.

In the meantime, NAACIE remains on strike insisting that the corporation proceeds to arbitration to resolve a wage dispute for 2001.

GUYSUCO said the union was demanding 38 per cent increase in wages for the same year. Although the corporation declared a loss of $1.2B, it increased wages for all unionised employees by 8.5 per cent which cost the company $1.1B, the statement said. This level of increase cannot be sustained by any loss making enterprise, it said.

The expansion of the Skeldon operation is the only immediate panacea for the reduction of the company's operating costs.

The economies of scale, good cane growing conditions and better labour productivity in the Berbice Estates, and other cost saving initiatives would help to reduce the industry's overall cost of producing below the current US$17.7 cents per pound, it said.

"The future of the Demerara Estates depends heavily on the corporation's ability to improve productivity and reduce costs. It is imperative, therefore, that the unions and their members act with reason and good judgement, and that their demands take into consideration the need to secure the sugar industry in its present shape for the good of all.

"Excessive and unrealistic wage awards will undoubtedly hasten the demise of the Demerara Estates," GUYSUCO said.

Meanwhile, NAACIE General President, Mr. Kenneth Joseph has written Chief Labour Officer, Mr. Mohamed Akeel on the dispute with GUYSUCO which has resulted in a one-week strike so far by workers represented by the union.

Joseph said the union has remained constrained not to encourage other workers who have expressed solidarity to join the join the strike because it feels reasonableness will prevail.

"Unfortunately, to date we have seen an attitude of lack of concern on the part of both your ministry and GUYSUCO in resolving this matter", he said in the letter.

NACCIE is urging that the matter be speedily resolved and categorically stated that it will not prevent workers who want to give solidarity from doing so.