The future of BERMINE - through the eyes of the workers
Guyana Chronicle
June 23, 2002

Related Links: Articles on bauxite
Letters Menu Archival Menu

WORKERS of the Kwakwani operation of the Berbice Mining Enterprise (BERMINE) along the Berbice River, Region Six (East Berbice/Corentyne) have expressed several views on the way forward for the bauxite industry, particularly at Kwakwani, in view of the economic crisis facing the industry.

During a meeting with President Bharrat Jagdeo and a team of high-level Government officials last Thursday, the workers expressed their views on the way forward and also voiced their concerns about the implications, if the proposals are implemented.

The response in Kwakwani to the President’s meeting was overwhelmingly positive, as they were given a chance to speak directly to the President on the future of the industry and their concerns.

According to one worker, they fully supported the idea of merging the Aroaima Bauxite Company (ABC) and BERMINE, adding that they are not sure if it is the best way forward, but it is a way out of the present crisis.

“I do not know if the merger is the best idea, but the workers could speak for themselves that we have been stifled for too long by the Union and management. If we are not merging, then get rid of the management!”

The workers are represented by the Guyana Trades Union Congress (GTUC). Various proposals were put forward by its General Secretary, Mr. Lincoln Lewis. The workers also indicated that the union had promised them better salaries and working conditions in 1995 and 1997, but these promises were never kept.

Given the fact that all the workers would lose their jobs if the operation collapsed, Government had stepped in and the workers were required to put forward a proposal. This proposal was considered and the Government and the workers reached an agreement which states that the 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.

In addition, an 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 Government.

However, at the meeting on Thursday afternoon, some workers called for severance pay to be calculated on the percentage of the number of hours worked per year, instead of weeks per year. The President said the details of all proposals will be considered and then any agreement will be reached.

Management believes that subject to the continuance of the ALCOA contract and the payment of the voluntary severance cost by Government, BERMINE will be able to achieve a break-even position this year.

Voicing their concerns, residents said: “Merging is good; some will have to go home, while others will be retained, but what will happen to the youths? Many of the residents are advanced in age, and educational standards are quite low in Kwakwani.”

In response, President Jagdeo assured them that Government will take over certain responsibilities at Kwakwani that are funded by BERMINE. These include water, schools, hospitals and electricity.

The services that are currently managed by BERNMINE will not only be taken over by Government, but will also be expanded,” President Jagdeo emphasised.

Government expressed its willingness to receive and consider the management/employee proposal to take over BERMINE and this was not supported by the workers, as, according to them, there is need for substantial work to make the industry break-even. Instead, they urged that a merger of ABC and BERMINE be considered now, as this would save the jobs of many people.

One worker rationalised his support for the merger by saying that ABC’s production target was set at two million tonnes per year and the actual production now is about 1.4 million tonnes per years.

“Merging the two will help to boost production at ABC,” the worker said, adding that the stripping and mining of the bauxite at Kwakwani will continue, using the same workforce. It will be processed at Aroaima and then sent to Everton to add chemicals, hence making use of many workers form the three locations. This will all be done under one management, should the merger take place, he said.

The workers voiced dissatisfaction with the size of the houselots given to them in the Kwakwani area. The lots are 50 feet by 100 feet.

The President told the workers that the option of relocation to the coast is open to them as Government is prepared to give houselots to those workers without any cost attached, except the lawyers’ fee for processing the transport, adding that residents can seek their own lawyers to prepare the necessary documentation.

Workers of Kwakwani requested that the Linden/Kwakwani road be repaired. Government promised to do this at the end of the present rainy season.

The President, in collaboration with the workers, agreed to establish two committees that will meet with the Administration during this week to further address their concerns and to follow up on the various proposals advanced.

Both sides welcomed the cordial and cooperative nature of the discussion, which resulted in the decisions taken to address the current situation.

Stemming from its commitment to resolve the problems in the bauxite industry, particularly the situation facing the operations at Kwakwani, President Jagdeo and a team of high-level Government officials including the Minister of Education, Dr. Henry Jeffrey, Chairman of GGMC, Mr. Robeson Benn, and Mr. Ron Webster visited the area on Thursday.

The visit included two meetings, one with the workers of the Berbice Mining Enterprise at Kwakwani and the other with members of the Kwakwani community.

Among the issues discussed at these meetings were the future of the industry; Government’s proposal to give financial assistance and to provide payment to those workers who are 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 their impact on the operations at Kwakwani.

President Jagdeo, at the meeting with BERMINE employees, said that 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 ALCOA’s bailing out of the 50 per cent ownership of Aroaima which left the Government as the sole owner of the Aroaima Bauxite Company.

Mr. Lewis, who was invited by the Government to meet the workers and residents replied that he would be unable to attend.

On February 14, 2002, the so-called workers’ group came up with yet another proposal that involved a 60 per cent takeover by the workers at a cost of US$300 000, which the group said would see growth in the industry. It was also proposed that should the transshipment facilities be closed, then they would use self-discharging ships.

But workers claimed ignorance of t he workers’ early so-called proposal, and subsequently, overwhelmingly supported a proposal to merge Aroaima and BERMINE.

Another worker thanked the President for his declaration that the resolution to the crisis would not involve politics.

“One of the things I want to thank you for is that you have said politics is not in this. I am extremely happy that you have made such a declaration.” (GINA)