Bauxite forum ends on optimistic note
Options open for workers involvement

By Andrew Richards
Stabroek News
April 28, 2000


A forum on the bauxite industry ended yesterday on a note of optimism that government was still open to options as regards the future of the industry, but it was emphasised that local capital should be given an equal opportunity to secure the sector's viability.

And though there was a bitter exchange between Prime Minister Samuel Hinds and former finance minister Asgar Ally about government's commitment to the bauxite industry it all ended on a cordial note.

"The bauxite unions are strong in their view that the bid held in escrow that originated from the workers/management group should be given serious consideration at the closure of the current privatisation exercise being conducted," General Secretary of the Guyana Trades Union Congress (GTUC), Lincoln Lewis, told Stabroek News at the conclusion of the forum yesterday.

Lewis said the chronic power problem currently facing the Linden community was an example of how privatisation was affecting it, referring to Texas Ohio Ltd which now has controlling interest in the power company there.

Lewis revealed that the bauxite unions will be recommending to the government that the community's utility services be completely removed from the Linden Mining Enterprise's (Linmine) operations by July 1. It was also imperative that the administration re-negotiate the contract with Texas Ohio Ltd, he stated.

The GTUC general secretary said that there existed a great appreciation at the forum for the role of workers and management in the industry. He said a concise list of recommendations on the future of the industry will be prepared and forwarded to President Bharrat Jagdeo for Cabinet's consideration.

The forum, held by the Guyana Bauxite and General Workers Union, the National Mining and General Workers Union and the Guyana Mines, Metals and General Workers Union, was the last one to be held in Georgetown. According to Lewis, the unions will now be moving to the communities to commence a sensitisation programme and involve a wider cross-section of the people in the debate.

Lewis opined that all the parties involved seemed ready to move the process forward in arriving at a common position on the future of the sector.

From all indications, Prime Minister Hinds had left the options open, he stated.

Hinds, who sat in on the closing session, urged all who were willing, to do what they could to make the industry profitable once again. He said, however, that they must at the same time seek to diversify the economic activity in the Linden area.

When a "hard-nosed" evaluation was done it was always the conclusion that any business must operate at a surplus, he stated. People would only be deceiving themselves if a decent standard of living was not achieved while continuing to run a deficient industry, he said.

Recounting the historical relationship of Linmine to the community, Hinds said he was one of the persons foremost in trying to move Linden away from the "company town" label. The changes in the responsibility for the water and electricity supply in Linden were being timed to coincide with the European Union/SYSMIN programme which will get off the ground in March next year, he said. He stated that the Guyana Water Authority was stretched to the limit and the administration was working on garnering much needed resources in order to delink the responsibility finally from Linmine.

Earlier in the day, at another session, feathers were ruffled when Ally accused the government of putting the bauxite industry on the backburner because it was being run by "black people."

Ally charged that the government was giving the sugar industry preferential treatment by planning to inject some US$200 million into that sector and neglecting the bauxite industry.

"I don't think the government sees bauxite as a black people industry... I refute that," a visibly upset Hinds responded. "Let me express great disappointment that Mr Asgar Ally, who was a former finance minister in this government, is putting such an analysis to people."

Sugar was raising money on its own merit, he stated. He said the government had been accommodating to the bauxite industry and work done included the writing of Letters of Comfort to facilitate the industry to raise money on its own merit. Hinds noted that if sugar did not have a preferential market it could have suffered a similar fate as bauxite.

"It's almost dishonest for [Ally] to make those representations... It is exceedingly misleading because of the harm it causes within our community," the usually unperturbed Prime Minister declared.

Representations were made as recently as Wednesday to the National Bank of Industry and Commerce Ltd seeking funds for the Linden operation, he stated.

"What I've said, I've said it in all honesty because I believe that.... it's for the people to judge me as to whether what I've said is true or untrue," an apologetic Ally said afterwards.

"What I'm saying Mr Prime Minister, Sir, is that I'm sorry and I apologise if I have offended you in any way. But that was not my intention. As an honest economist I was dealing with the perception that a lot of people have come to me with," Ally stated.

Most of the issues discussed at the forum were deliberated upon two years ago when the first caucus was held. There were several recommendations and a document was compiled which identified what needed to be done to return the industry to a state of viability.

In the first forum, the existing state of the two bauxite entities was examined. International bauxite production and market trends and their implications were also looked at. The possibility of public, private and other forms of ownership were discussed.

The participants also deliberated on the implications of the developments in the sector to the workers and those who make their livelihood from the industry.

The second forum reviewed the companies' performances over the last two years. It revisited the global trends in the marketplace and their impact on the way forward. Available options for the refinancing of the two companies were examined and it ended with a workers' perspective for re-energising the sector.

The two-day forum was graced by stakeholders in the sector and others such as The United Force leader, Manzoor Nadir; PNC Parliamentarian, Lance Carberry; Working People's Alliance's member Eusi Kwayana; Chairman of BIDCO, Ron Webster and union consultant Ramon Gaskin.