Discussions in progress regarding redundancies at East Demerara Sugar operation

The Guyana Sugar Corporation (GUYSUCO) says in order for the integration of the LBI and Enmore estates to make sense, the duplicated activities should have been rationalized in the same year, but this was not done and resulted in further deterioration in the economics of the East Demerara operation.

In a press release the Corporation noted that the East Demerara Estate’s cost of production increased from US 26 to 30 cents per pound prior to the closure of the LBI factory to US 41 cents per pound after the closure, peaking at US 54 cents in 2013.

“It behooves the current management to expedite the completion of the integration of the Enmore and LBI Estates into the East Demerara Estate to try and prevent sugar production in East Demerara from going out of existence in the near future,” GUYSUCO cited.

It is important, GUYSUCO said to bear in mind that the Mill Dock operation is only necessary where there is a factory. The closure of the LBI factory in 2011 rendered the Mill Dock redundant and according to the Sugar Corporation, retaining it for the past 5 years represents keeping approximately 58 persons on the payroll “with no productive work to do and transporting canes from the LBI cultivation to the Enmore factory in a more costly manner.”

The following are details of the employee composition at the LBI section of the East Demerara Estate:

• The LBI section has 846 employees from which approximately 125 are duplicating functions which are currently being undertaken at Enmore. These include personnel in the following areas: Mill Dock, Field Workshop, Field Laboratory, Field Office and Stores.

The following are the categories of employees at the LBI section:

• 710 Field workers
• 136 Junior staff

Of the above, GUYSUCO said approximately 721 are working at both the LBI and Enmore sections primarily in the harvesting and crop husbandry areas.

Approximately 125 employees are in the category of duplicating functions at LBI, details as follows:

• 58 persons in the Mill Dock.
• 38 persons in the Field Workshop, and
• The remainder are in the Field Laboratory, Field Office  and Stores

GUYSUCO noted that the numbers that will be made redundant will be determined after filling existing vacancies at Enmore.  GUYSUCO, GAWU and NACCIE.

Discussions are in progress to have the process completed by the end of May, 2016.