An International Labour Organisation (ILO)-commissioned report on the socioeconomic impact after the sugar estates closure has found that weekly household income had fallen by a startling 64 per cent, fueling an escalation of alcohol abuse, crime and suicide among affected communities.
The ILO n launched its findings today, giving an in-depth analysis of the impact faced by sugar workers and thousands more in the secondary network.
The move to downsize the sugar industry back in 2016 saw the dismissal of 5,160 workers; with 1,889 from Skeldon Estate and 1,531 from East Demerara Estate. Dismissals from the Wales and Rose Hall estates were both below 1,000.
Funded by the ILO’s Caribbean Resilience Project, the study on the socioeconomic impact to sugar workers was conducted by Director of the University of Guyana GREEN Institute, Dr Thomas Singh.
The focus group data confirmed that weekly household incomes had fallen dramatically by 64 per cent, from an average of $32,238 to $18,450 after the closures.
According to the executive summary of the report, it was found that the livelihoods of sugar workers who were laid off were severely compromised; only one respondent, felt that she was better off compared to when she worked with GUYSUCO.
“Livelihoods notably depend on capabilities, assets and economic activities. On the capabilities front, concerns faced by workers included feelings that they were too advanced in age to be considered by new employers (especially in the context of wider unemployment in the country), children still at school, and the ability to use skills outside of GUYSUCO,” the report explained.
As regards assets, the severance paid to a worker averaged across the four estates was G$838,177, while 17 per cent received no severance or were yet to receive at the time the interviews were conducted.
It was further explained that the severance paid to a worker averaged across the four estates was at G$838,177. The averages for Wales, East Demerara, Skeldon and Rose Hall were G$613,800, G$1,227,642, G$509,666 and G$1,001,600 respectively. Notably, East Demerara and Rose Hall were significantly above the industry mean and almost double the amount of the other two estates. It is not clear why this was the case.
Overall, an estimated 27 per cent of redundant workers received severance that exceeded one million Guyana Dollars, 17 per cent received no severance or were yet to receive (at the time the interviews were conducted), 32 per cent received more than half a million dollars but less than a million dollars, and 24 per cent received between one dollar and half a million dollars. 31 out of the 41 respondents reported that they had not received their payments on time.
Further, the loss of the majority of jobs by fathers – the main providers of incomes for the households – could have, at a minimum, disrupted the relationship between communities and strong family values.
Some of the insights on the economic activities of the laid-off workers include the fact that some workers were still unemployed at the time of being interviewed, while many of those who did find new jobs were employed on a part-time or seasonal basis.
Concerning the sustainability of the livelihoods of laid-off workers, factors considered included, but were not limited to, the individual educational attainment of workers, home ownership and weekly income before and after termination. Further, discussion on the security of livelihoods covered issues including considerations of working outside of the sugar industry in sectors such as oil and gas.
As regards livelihood security, considerations covered included whether respondents were willing to consider working in the oil and gas sector, and whether they had access to retraining opportunities.
