President brokers agreement with LINMINE unions
-- unions hail separation package
Guyana Chronicle
October 11, 2002
PRESIDENT Bharrat Jagdeo on Wednesday night brokered an agreement with the Linden Mining Enterprise (LINMINE) for a separation package for bauxite workers whose services are either being terminated voluntarily or by management.
The agreement was reached between the unions - the Guyana Mining Metal and
General Workers Union (GMM&GWU) and the Guyana Bauxite and General Workers
Union (GBGWU) and the Government at a meeting convened by the Head of State at the Office of the President Wednesday.
This meeting with the unions stemmed from the President's commitment to resolve the problems confronting the industry.
Last June, the President visited the bauxite operations at Everton and Kwakwani to solicit the workers' opinion on the way forward. Noting their views expressed at those and other fora held with the workers, negotiations began.
According to the separation package agreed upon, LINMINE workers leaving the company will be entitled to payment for six weeks annually for a maximum of two years.
The Government, on behalf of LINMINE will pay all National Insurance Scheme, Pay As You Earn and Pension contributions. The workers will also receive 10 per cent of their redundancy/severance pay as provision for a training grant.
These payments will be made to the former employees of the bauxite operations in a lump sum.
Head of the Privatisation Unit Mr. Winston Brassington, affixed his signature to the agreement on behalf of the Government.
He expressed his satisfaction that the negotiations were concluded with consensus from all parties involved.
"I think the package is overall a very good one for the industry. It will cost a significant sum. We are looking somewhere above US$10M.
"But I think that it is important that we provide as much support as we could to help with the transition (privatisation deal with Cambior) and I think this will do that," he commented after the meeting Wednesday night.
According to Chief Executive Officer of LINMINE, Mr. Horace James, the separation package is a major plus for the privatisation of LINMINE.
"I think it is a very significant event that we are able to finally reach an agreement.
"I think this will jump-start the restructuring of LINMINE, first of all with the voluntary reduction and as we move forward with the privatisation and contracting of some services in Linden.
"We would now be in a better position to restructure the industry and move bauxite production forward. This (the agreement reached) is significant because the management of LINMINE, the workers and Government are all in agreement with the terms of the separation package," he said.
Mr. Clavis Duke, of the GMM&GWU, was high in praise of the package.
"The agreement is a good one. It gives six weeks for each year of service for a maximum of two years and it also paves the away for all the workers of LINMINE who want to come off voluntarily, to do so immediately and still get some benefits.
"The 10 per cent training grant being paid to all workers, I am very happy with that. The package, under the current situation is a very good one...and very shortly we would see the bauxite industry on the roll," he said.
He said the agreement is reasonable, given the problems confronting the industry.
"The agreement is reasonable in terms of the situation as it relates to the financial aspect of the company...I know the workers will accept what is being offered," he said.
Mr. Patrick Johnson also signed the agreement for the GBGWU and Mr. Patrick Paul for the GMM&GWU.
The bauxite industry has been declining since the 1970's because of various factors, including local and international competition, 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, of the United States, bailing out of the 50 per cent ownership of the Aroaima Bauxite Company and leaving the Government as the sole owner of the company.
Over the years, the Government had made several interventions, all with the aim of sustaining operations at the Berbice Mining Enterprise (BERMINE).
About eight years ago, the Government waived a significant amount of taxes from the company, allowing it to continue operations.
The Government has also guaranteed loans for the recapitalisation of the BERMINE industry from European banks. Parts of these loans were used to purchase equipment.
A "workers' proposal" had been put forward by a group, which claimed that it could have bought the company and revitalised its operations without job loss through a "strategic investor."
This proposal, which turned out to be a ploy to gain the Government's attention after the Administration was considering Alcoa's proposal for the merger at that time, sidetracked the authorities from the merger, because it proposed a 60 per cent takeover.
The Canadian-based Cambior company, the major owner of the Omai Gold Mines Limited, is expected to absorb 70 per cent of LINMINE by November with an ultimate time frame of May 2003. (Government Information Agency - GINA)