Minister Bisnauth’s decision to exercise his referral powers under the Labour Act, raised two issues of concern to students of industrial relations. First, both pay claims are to be adjudicated upon by the same tribunal comprising Prem Persaud, David Yankanna and Norman McLean. Second, the recommendation of the Chief Labour Officer to refer the pay claim proposed by GAWU anticipated industrial action by the union. While GAWU is unlikely to raise objection to the referral itself, there must be concern amongst its members over their claim being arbitrated by a tribunal that includes no person possessing recognized expertise in management, or service, in the sugar industry.

It will require much persuasion by the union leadership under the old stalwarts, Komal Chand and Premchand Das, to convince their 16,000-odd membership that there is wisdom in setting aside the weapon of industrial action. Should they succeed it will be a credit to the maturity of the union’s leadership and their ability to devise a vision for workers in the sugar industry.

In these negotiations GUYSUCO tabled a 4.5 per cent increase, arguing lack of financial resources and closures in the Demerara estates.

Faced with declining world market prices and high production costs, in order to meet GAWU’s claim for a 18 percent increase and NAACIE’s for 38 per cent, GUYSUCO will be required to demonstrate new skills so as to educate the tribunal that survival of the industry can be assured only when the rise in employment costs is checked and begins to fall to its pre-1992 level of 29 per cent of revenue.

Regionally, the sugar industry in Barbados, Jamaica and neighbouring Trinidad and Tobago, have all witnessed closures and the consequential retrenchment of workers. In June, Cuba, a major world producer, announced consolidation and re-structuring of its 156 sugar mills, displacing thousands of workers, and closing 71 mills. The overall picture is bleak.

What then are the prospects for GUYSUCO? The corporation has embarked upon an agricultural improvement programme, that if successfully implemented will lead to lower production costs. However, current world market prices will require production costs to fall to no less than 12 cents per ton to make Guyana’s sugar competitive. An additional plus is the recently announced $(US) 70million sugar factory to be constructed at Skeldon, Berbice. That factory if coupled with a refinery will allow GUYSUCO to enter the lucrative market for beverage and confectionary sugars and syrups, thereby significantly increasing the corporation’s revenue base.

If GUYSUCO’s projections are reliable, then the leadership of both GAWU and NAACIE shall be deemed to be reasonable people only if they can demonstrate a willingness to promote a new culture towards wages. The unions must be courageous in preparing their members for the new productivity demands of a revived and competitive industry. Should that project of engendering a new awareness towards worker participation in the sugar industry fail, then the harsh realities will prevail.