Sugar workers unions to respond to new profit-based incentive proposal
Stabroek News
June 17, 2004
The two unions that represent sugar workers are to respond this month-end to submissions made by Guysuco for the replacement of the Annual Production Incentive (API) with a new Profit-Based Incentive Scheme (FBI).
Guysuco had asked the Ministry of Labour to conciliate in the matter after the two unions, the National Association of Agricultural, Commercial and Industrial Employees (NAACIE) and the Guyana Agricultural and General Workers Union (GAWU), had rejected the offer to replace the current (API).
At their first meeting last week at the Ministry of Labour Guysuco made its presentation and the two unions are expected to study it before making a response on June 29, a source told this newspaper.
President of NAACIE, Kenneth Joseph as well as an official of GAWU said their unions will not change their positions.
Industrial Relations Director of Guysuco, Jairam Petam had strongly backed up the corporation's decision by saying that the proposed change is a practical one.
Petam had told this newspaper that the company's proposal was long in coming, and it was based on the fact that there was no correlation between the API and the company making a profit. He added that over the years Guysuco has been paying workers an API, but the company was not actually making profits in some of the instances.
But Joseph countered saying that the company has been making a profit, but the money was being channelled into other areas.
In this year's Guyana Poverty Reduction Strategy Progress Report it was mentioned that Guysuco will endeavour this year to reduce the cost of production of sugar and towards this end, the company will continue with its labour attrition policy and will also replace the API with a profit-based incentive.
The report noted that the principles of profit-based incentives are already in a January 2004 management contract.