GAWU Holds Stimulating Dialogue On Divestment

DIVESTMENT in an undemocratic environment will erode the sinking economy further, according to labour leaders, the political opposition leader and a leading economist and WPA executive member.

These views were expressed last Saturday at the auditorium of the Guyana Agricultural and General Workers’ Union (GAWU) building on Regent Street in a dialogue on the State’s divestment moves.

Responding to a barrage of criticisms of government’s lack of democratic principles, Deputy Prime Minister Planning and Development Haslyn Parris said that “if there is not enough dialogue and democracy, then the matter has to be addressed. It is being addressed in discussions which are ongoing.’’

As speaker after speaker suggested that divestment should take a back seat to democracy, Parris noted that whatever may be the reasons for the present situation it had to be dealt with and he suggested that participants should deal with the issue of divestment itself and any alternatives they might propose.

The debate was organised by GAWU and presentations were made by Executive Secretary of the Federation of Independent Trade Unions of Guyana (FITUG), Mr. Leslie Melville, DPM Parris, opposition Leader Dr. Cheddi Jagan, Director of the Institute of Development Studies, UG Dr. Clive Thomas, General Secretary of the Guyana Rice Producers’ Association, Mr. Pariag Sukhai and TUC secretary Joseph Pollydore.

Kicking off what proved to be stimulating and vibrant debate in front of a capacity audience, Parris explained that “divestment is removing a State corporation from one hundred per cent government ownership.” He referred to the concept of strategic alliances with other companies and said in some cases where businesses were doing badly for one reason or another, “it’s either you get an alliance or close it down.” To divest means to pursue a sustained competitive advantage for the corporation. Not to divest may mean letting it suffer the fate of the now defunct Glass Factory, he said.

After the panellists had made their opening contributions there were lively offerings from the floor with the panellists responding in some cases and the dialogue continued well beyond the prescribed time.

In response to the question of what was the alternative to divestment Dr. Jagan said that “the foreign investment policy needs to be examined more.” Many speakers argued the government had no mandate to divest.

Union leaders called for union participation in consultations before divestment is agreed on. Responding to this and allegations that very little information was often provided, DPM Parris noted that business confidentiality has to be taken into account. During discussions though, he supported, in principle the ideas of consultation and full disclosure. Veteran trade unionist and General Secretary of the Trades Union Congress Mr. Joseph Pollydore said, “we must address the question of consultation before divestment — very seriously.”

The dialogue was enthusiastically welcomed by those present.

A suggestion was made that another debate be organised at another forum to which DPM Parris readily agreed.