Laid off Lindeners face survival challenge
Residents say town needs urgent assistance By Oscar P. Clarke
Stabroek News
April 15, 2003

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Many workers of the Linden Mining Enterprise (Linmine) are learning how to cope with redundancy. How they cope and how they are helped will determine the future of the town of Linden wracked over the last two weeks by protests over the collapsing power and water supply.

Preliminary investigations by Stabroek News indicate that 450 to 600 workers have either opted or have been severed from the company and this figure is set to rise.

There is however a glimmer of hope that some would be re-employed with Cambior now in discussions to acquire the mining and refining operations of Linmine by mid-year and likely to re-tool its operations. Mining and stripping operations, from where the bulk of the workers have been let go, have already been contracted out to Omai and a number of workers have been rehired.

Meanwhile the layoffs are being felt in every section of the town. While some persons were optimistic that things would get better with the changes, others saw the need for external assistance to aid in the community’s recovery.

The package worked out in agreement with the main bauxite unions has seen mine workers at Linden receiving six weeks pay for each year of service to a maximum of 104 weeks.

This is topped up by 10% of the total which is designated to be used as a training grant. All of this is free of taxes.

President of the Guyana Bauxite and General Workers Union (GB&GWU), Charles Sampson told Stabroek News recently that the primary reason for the redundancy was to see the downsizing of the company’s wage bill.

But he said this had not happened since the company continued to pay significant amounts in overtime to those remaining.

According to Sampson what the redundancy had resulted in was valued workers who were not the target of the scheme, opting to leave, requiring those left to work 12 hours as opposed to eight- hour shifts to get the same amount of work done.

Critical staff, he said, had been released by the company defeating the purpose of the entire exercise and plunging the company into further jeopardy. Government, Sampson said, only now seemed to be looking at the possibility of restructuring the company and undertaking selective redundancies, an option he felt they seemed not disposed to take.

Meanwhile since the commencement of the redundancy exercise, Sampson said there had been no proper system or scheme to deal with the large number of unemployed. According to the union leader, it was expected that there would have been some agency or some mechanism set up so that the redundant employees could have channeled their funds into some form of economic activity.

The Linden Economic Advancement Project (LEAP), in which Sampson said he had very little faith because of its perceived failure to deliver on some of the touted initiatives, has held some workshops in the region to sensitise persons on farming issues.

Releases from the programme have said that it had specifically targeted redundant workers from the bauxite industry. However the much anticipated Linden Economic Advancement Fund (LEAF) is still to get started.

Investing in minibuses
“Presently there is a situation where a number of them [redundant workers] are choosing to invest their sums in minibuses and cars leading to twice the number of vehicles on the road although there is no growth in the travelling public,” Sampson said.

He acknowledged that the union was actively thinking of ways to advise ex-employees on how best they could invest to earn maximum benefits and also assist in creating employment in the community.

Some people he said were disciplined and could well bank their money and, little by little, make ends meet while awaiting the possibility of some economic activity in the community occurring.

Sampson said there needed to be industrial development with the establishment of entities to employ a few thousand persons.

He also pointed to investment in the forestry and agricultural sectors while highlighting the need for proper conditions such as leases to be issued.

According to Sampson it was here that the government had not been able to provide the kind of advice and direction to people.

He was concerned there might be serious social problems in the community with persons not being able to pay bills or mortgages on properties only recently built.

Region Ten Chairman Mortimer Mingo told Stabroek News that while persons would have received money in lieu of severance from the company, they needed to understand that if there was no alternative employment then they would have to manage those finances carefully to allow them to survive in the long run.

He was of the view that the severed workers would have to find gainful employment or be forced to use their severance for their daily sustenance.

Acknowledging that some would seek to invest their windfall in available projects, Mingo said the community offered limited opportunities for such undertakings.

There were two types of service-oriented industries according to Mingo - the transportation sector and the buying and selling of goods. The transport sector, he said, was virtually saturated with supply far outstripping demand.

It was a particular concern to Mingo that a lot of the persons seeking to enter the sector, after years of being employees, might not have the discipline required to make the transition to being an employer.

He also pointed to the growing number of school leavers looking for jobs alongside their parents who had been severed from the bauxite company.

The situation has been made even worse with the prospect of some 362 school leavers joining the ranks of unemployed excluding the 219 dropouts. The closure of the Guyana National Co-operative Bank branch would create more unemployment. The impact of all this was increasing the crime rate, said Mingo.

He saw the need for at least two large industries, catering for about 1000 to 2000 workers. He added that the Ituni district was virtually dead with only limited forestry activity being undertaken. The town of Kwakwani, he said, also needed serious investment.

Some recently laid off workers gave mixed reactions about their chances of survival now that they were out of a job.

What the workers say
Carl Kit had been employed with Linmine for 28 years and was let go in December. He was not happy about the way the company had treated him especially after he had given almost his entire working life to them.

He was also dissatisfied with the redundancy package of just over $900,000 which he said did not fully compensate him for his years of service.

Kit, who now operates a minibus, is of the belief that he was taken advantage of.

The upshot of the entire episode is that he has no dependents and is considering his options including migrating.

Norman Blounte also felt that after 28 years his redundancy award ought to have been more.

He had worked as a millwright mechanic in the pump area of the East Montgomery Mines site. He has already invested some of the money in a minibus operating routes around the mining town.

Blounte said that although farming was not his line, he could do other things closer to his field of expertise.

Asked if he could provide for his family he said he might have to cut back to make ends meet. But he was optimistic that he could survive from the earnings of his minibus and undertaking occasional work.

John Trim, a mechanic repairman who worked with the company for 25 years, is satisfied with the package especially since he was one of the persons who was involved in brokering it.

He is optimistic that once he has life there is hope since he has the ability and is prepared to be gainfully employed.

He has written several applications and says he is still trying to be self-sufficient. Part of his severance has gone to completing his home which he sees as a priority.

He admits that the package is not something to live on and that it would be a misconception for persons to look at it as the end of the road. He said there would always be some persons dissatisfied with the package although he thinks it was the best offer in the circumstances. He sees the company’s failure as a wake up call to some who felt that things would have remained unchanged forever.

He is optimistic that with prudent management and investment, it would be able to make a positive turnabout.

In relation to Linden, he believes that it still has the possibility of becoming vibrant but that people have to put their act together. According to Trim, some 30% of the redundant staff are likely to be rehired by the contracting firm, whether it be week to week or month to month with first preference going to those laid off.

Harold Shortt who worked with the industry for 48 years ending up in the maintenance crew, was concerned that with redundancy payments persons would not receive any further benefits.

He was however satisfied with his package since he expected it to be sufficient to sustain him for the remainder of his life.

Mayor of Linden and businessman, Stanley Smith foresaw things getting worse as the sums received by those made redundant began to diminish over the coming months.

“If there is no new industry or venture springing up in Linden within the shortest possible time I am certain that businesses would be forced to reduce their employment.”

He said the LEAP programme would have to be accelerated.

He saw the need for adjustments in the programme to bring relief to the town’s people since he anticipated that the programme was not designed to deal with further reductions of employment in the bauxite industry.

Smith saw the need for a speeding up of the LEAF aspect of the programme as a way of assisting persons who needed funds to improve their businesses.

As for Linmine, Smith said with the involvement of Cambior, finding markets for the product and putting the sector right, could be possible.

Bodies like the Guyana Manufacturers’ Association could play a role in harnessing the skills, and aid in setting up micro industries in the town, Smith added.

He also saw agriculture as playing a vital role in supplementing the income of persons.

PNCR Member of Parliament, Abdul Kadir said the town’s situation could not be isolated from the shrinking national economy.

The former mayor of Linden said the situation had been made even more frustrating with the government not recognising the problems sooner and neglecting to make accommodation to lessen the social and economic dislocation.

He felt that the government had failed the people in that community by not providing basic essential services and opportunities for their development.

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