It is now history that the St. Kitts Sugar Manufacturing Corporation ceased to carry on its business operations as of 30th July, 2005. It is however important, if not imperative, that we as a people, whom have been financially and otherwise dependent on the Sugar Industry do not forget that its demise was accelerated by the wanton mismanagement of the Industry, by the present Labour Government.
During the tenure of the previous People's Action Movement government, the robust and healthy economy, at the time, facilitated continued operation of SSMC despite internal and external negative influences, with the recognition that hundreds of families depended on the Industry, to sustain their livelihoods. It is factual, that the P.A.M. government of the day gave sugar workers the biggest wage increase of 25%, whilst at the same time subsidizing the industry which was loosing approximately 10 million dollars annually. With a National Debt level of approximately 200 million dollars, there was no financial strain or burden on the tax payers of this country, and as such, the continued operation of SSMC was realized. Feasibility studies were done with regards to the privatization of the industry as an option which would aid its sustainability and longevity. Subsidiary products like CSR Rum and Ethonal were pursued in an effort to diversify and expand the industry.
When the Labour government attained power in 1995 it immediately sought to revitalize the failing sugar industry by pumping millions of dollars into its operations. Political positions were created at exhorbitant salaries, and locomotives were refurbished and one named after the wife of a government minister. In a very short time, the SSMC was facing very serious financial hardship as its debt increased and the Industrys Loss skyrocketed to 35 million dollars annually, as opposed to 10 million dollars under the previous PAM government. At the closure of the Sugar Industry in 2005, the debt of the SSMC was a "mind boggling" 400 million EC Dollars.
During the campaign leading up to the 2004 General Election, the political leader of The People's Action Movement, Mr. Lindsay Grant made a decisive statement to close the Sugar Industry should his party be elected to government, so as to prevent the annual SSMC debt of 35 million dollars, being added to our already high, two billion dollar National Debt. As a compensatory Package, ex-sugar workers would have receive additionally, three to five acres of land. Mr. Grant was accused of being a crazy man and wanting to put sugar workers out of work. At a public meeting the Prime Minister said that the Sugar Industry would close over his dead body. The Labour Government closed the Industry only months after the 2004 Elections were over and as a result some 1,470 workers were made redundant.
On the issue of Severance pay, the government initially stated that all SSMC workers would be paid according to the Labour laws of our country specifically the 1986 Protection of Employment Act. It was not until The People's Action Movement candidate for Constituency #8, Mr. Eugene Hamilton, uncovered a redundancy payment plan which was agreed to in 1961, did the government disclosed that there was indeed such a plan. This 1961 agreement provided for a superior severance package than what the Law provided for. The Prime Minister eventually stated that his St. Kitts-Nevis Labour Party Administration has accepted the 1961 Agreement, which calls for long service workers in the field and factory, to be paid severance of 104 weeks instead of the 52 weeks stipulated by the 1986 Protection of Employment Act. This was the governments first attempt at trying to withhold monies which were due to ex-sugar workers.
Based on the 1961 Agreement sugar workers who would have been severed when the Industry closed were to share a total payout of some EC$44 million. The Prime Minister disclosed that a line of credit of approximately EC$40 million was obtained for the St. Kitts-Nevis-Anguilla National Bank. Ex-SSMC workers were to be paid in three installments beginning in September of 2005. During this month, some EC $18.5 million was paid. The second payment of EC$4.5 million was paid in December 2005 and the third payment of EC$4.9 million was paid in March of 2006. These payments amounted to approximately EC$28 million some $16 million short of the $44 million which was owed to the SSMC workers as per the 1961 agreement. Many sugar workers have complained that they were cheated out of their own monies and contend that they are still owed by the Labour Party government. Many are looking to the People's Action Movement for redress which can only occur with the change of government come the next General Elections.
Fellow Citizens, all indications are pointing to an early General Election. The issue of the treatment of ex-sugar workers by the Labour Party government, is one which cannot be ignored. Many SSMC employees are still without a job some two years after the closure of the Industry, and have felt betrayed by a government which built its foundation on their sweat and tears. A new PAM government would seek to do whatever is feasibly possible to bring about some measure of relief to all ex-sugar workers who are hurting as a direct action or in-action of the Labour Party government.
