Sweet change at Caroni

WITH settlement of the VSEP dispute between Caroni (1975) Limited and the sugar workers union, the Government can now proceed expeditiously with the long-overdue rationalisation of the outdated and deficit ridden sugar industry. The country can now feel a great sense of relief that the horrendous financial burden of manufacturing sugar will soon be lifted and that the alarming trend of rising subsidies — which tops $600 million this year and would have crossed a billion by 2006 — is about to be drastically reversed. This newspaper is pleased that, in the final analysis, good sense has prevailed on both sides. After protracted opposition to Caroni's VSEP offer by the All Trinidad Sugar and General Workers Trade Union, which reached the Industrial Court, the company and the union were able to reach an agreement as a result of which 8,116 daily paid workers are expected to accept their voluntary retirement packages by August 15. With the conclusion of this exercise, the first historic change in the rationalisation plan takes place with the ending of Caroni's cane cultivation and the subsequent shutting down of the old delapidated Brechin Castle factory.

From next year, Caroni will be operating one factory, the plant at Usine, which will process canes bought from cane farmers on the basis of quality — in other words, sucrose content — and not according to weight as before. This reduction means that Caroni will no longer be producing sugar for export, which had become a totally uneconomic dead-end business, and will now lower its annual output from over 90,000 tons to some 75,000 tons to satisfy the domestic market. With all the emotional rhetoric once directed by some politicians against the restructuring of the country's sugar industry, we are especially pleased that the process is now proceeding with the apparent consent and satisfaction of the various parties concerned, particularly the company's daily paid workers who, it seems, have eventually accepted the necessity for change and the opportunities offered by the attractive VSEP package representing an average increase of 30 percent above their retirement benefits. Another important benefit of the plan, in our view, is the fact that it offers sugar workers an opportunity to remain connected to the land, as those interested in a career in agriculture, in becoming full-time farmers, would be given parcels in areas suited for this kind of activity. Indeed, they would also have the chance of moving up from the status of sugar workers to joining the company of cane farmers.

As for the ATSGWTU, they may consider the concessions they have obtained for the workers as a victory of sorts. Counselling, financial advisory services, retraining centres are to be provided by Caroni and committees are to be established to ensure transparency and fairplay. Also, the company and the union are to meet to discuss the distribution of lands to workers for agriculture, housing and agro business. Finally, Agriculture Minister John Rahael, who had taken considerable opposition "pressure" after declaring the restructuring plan, should now be a happy man. But he still has before him the task of ensuring that the extensive land holdings of State-owned Caroni are developed in ways that would enhance the life of the "sugar belt" including the establishment of agricultural, housing and light manufacturing industrial estates. The restructuring of Caroni represents an historic event in TT's history, a significant chapter in an industry that once dominated the economy. We are pleased that it is proceeding without disruption, with the apparent good will of all concerned.