Prime Minister Hinds rebuts charges over dealings with bauxite workers Guyana Chronicle
June 11, 2002

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PRIME Minister Sam Hinds, who has responsibility for mining, has rejected, as “untruthful and without substance”, charges of deceit, victimisation and racism laid against the Government for its dealings with bauxite industry communities.

Speaking to a small media corps at his Wight’s Lane, Kingston, Georgetown office, he said Government has tried its best to be “realistic” in satisfying made promises.

Referring to a recently distributed pamphlet, which said bauxite workers will die as result of the current crisis facing the industry, Mr Hinds pointed to sums of money put in by Government to maintain the operations and largely upkeep essential social services, including water and electricity, particularly at Linden.

He said subsidies amounting to some US$3M were poured into Linden Mining Enterprise (LINMINE), prior to 1992, to satisfy demands and more was added, amounting to US$100M, since then.

The Prime Minister said there were instances when Government exercised restraint, especially over calls for intervention into the operations of administrators at the regional level.

He said racist allegations are constantly made against Government, predominantly during budget debates, but he rebutted them, saying the Administration has always dealt “even-handedly” with its monetary allocations to communities countrywide.

Dealing specifically with the privatisation of LINMINE, Hinds said the previous People’s National Congress (PNC) Government, in its Economic Recovery Programme (ERP), had agreed to reconstitute GUYMINE and BERMINE and privatise LINMINE.

He said the aim was to find a partner that would bring about a new start and make the organistaion “leaner”, more appropriate to the volumes of production and profitable.

Mr Hinds emphasised the undesirability of having people employed with a company that requires “continuous significant subsidies” and said there would be benefits from the sale of LINMINE.

Reporting on the ongoing negotiations between Government and Cambior, to effect a deal, he said the agreement signed would open the door to a more detailed study which, if successful, should lead to the evolution of a new company.

He said all severed employees would be paid according to the union agreement, 80 per cent of five weeks pay per year to a maximum of 52 weeks.

Meantime, talks are continuing with the union and management to work out a better package.

“Government has taken a position that employees should be allowed the facility to manage their affairs without fear of loss of severance,” he assured.

The Government Information Agency (GINA) said he gave the undertaking that workers can presently opt for voluntary severance but they will remain eligible for any additional benefits finally derived.

Mr Hinds noted that there has been a shortfall in provision of pension benefits in excess of 20 years now and Government has made a commitment to make up the difference, a preliminary estimate of which is US$5M, for the pension scheme, National Insurance Scheme, Pay As You Earn (PAYE) and thrift plan payments.