Close to 20,000 citizens in this country are still suffering quietly from the psychological effects of what is believed to be a well-planned, politically motivated conspiracy to shut down the sugar industry in 2003.
The All Trinidad General Workers Trade Union (ATGWTU) and other unions and associations born out of the sugar industry, past and present, insist this is the case.
The shutdown of the sugar industry, they said, politically, psychologically, socially and economically destroyed entire communities in the sugar belt of Central and South Trinidad.
Some estimate that a rural community of over 300,000 that was dependent on the operations of the industry for their economic survival was left in limbo.
John Jaglal, first vice-president of the ATGWTU, during an interview, recalled that at a seminar two years ago, the South West Regional Health Authority said an increasing number of patients on the psychiatric ward at the San Fernando General Hospital were ex-sugar workers. Many others went to early graves in poverty from stress-related illnesses.
These children of indentured immigrants who came to work in cane, with little education or skills, had filtered into the menial job sector.
Psychologically wounded, they continued to struggle to find a place in a society that considered them “tenth class” citizens, according to Basdeo Panday, former president of the ATGWTU’s predecessor, the All Trinidad Sugar and General Workers Trade Union (ATSGWTU).
“I think the PNM treated them that way because they were not part of the party’s voting strength.
“The UNC ignored them because they thought they would get their votes anyway.”
Panday, who moved up from union president to become UNC leader and, eventually, prime minister, removed himself from “the UNC” that treated sugar workers badly.
Panday said, “When the industry was closed down by the PNM in 2003 I was not in political office. I was prime minister from 1995 to 2001.”
Alcohol and drugs
provided escape
Nirvan Maharaj, who is now the ATGWTU president, said 65 per cent of the 9,000 ex-sugar workers received less than $50,000 in severance payments in 2003, which was quickly used up.
Alcohol and drugs provided escape, breaking up many families. “A lot of them felt they were in limbo. They did not know where they belonged anymore,” Maharaj said.
“No matter how small their salary in cane, it gave them a sense of security. Stripped of this security, they faced an uncertain future. It was like throwing them to the wolves.”
And there is yet another group for whom the effects of the shutdown are only now starting to kick in.
Seukeran Tambie, president of the Cane Producers Association of T&T (CPATT), said cane farmers were allowed to continue supplying a limited amout of cane to the Sugar Manufacturing Company Ltd, which took over operations from Caroni Ltd after the shutdown of the industry.
He said in 2007 the government abruptly severed all connection with cane farmers and paid them some compensation from a European Union grant given to the government.
He said in four years’ time, most of the money had been depleted and cane farmers, who got no other assistance to diversify, began feeling the pinch around 2011.
“I listen to people, and by 2011, they started feeling it. Those who wanted to send their children to university had no resources. Health-wise, many began to deteriorate...The effect will be felt for generations to come,” Tambie said. He called for an impact assessment.
Maharaj said the People’s Partnership had started the process of correcting the injustice by, firstly, withdrawing the state’s appeal of the 2004 judgment by Justice Lennox Deyalsingh in favour of Caroni workers. Deyalsingh had ruled that ex-Caroni workers should be given land leases, along with other relief. This means that distribution of promised agricultural and residential lots to ex-sugar workers under the Ministry of Land and Marine Resources has begun and is ongoing.
Maharaj, who formed the National Solidarity Assembly and had threatened that ex-sugar workers would withdraw their support of the UNC, said they were now fully backing the People’s Partnership.
“This is the first Government that has moved to help ex-sugar workers. You have to give credit where credit is due.”
Tambie said the Government paid the first tranche of an allocated $130 million to cane farmers in Princes Town recently. Cheques of $12,000 were given to 500 farmers. Two other payments are scheduled for later this year and in 2016.
A total of 441 ex-Caroni workers received their leases for both agricultural and residential lots in April. This brings the total recipients to 2,350 out of the 8,000-plus workers who were promised the lots in 1993. Some 131 people received lots for residential use, while the other 310 have been given land for agricultural purposes.
However, the story of the ex-sugar workers remains largely untold while they continue to suffer silently from sugar’s bitter legacy.
“No one wants to come out and officially say 20,000 people have been wronged,” Tambie said.
The Sunday Guardian, beginning today, attempts to tell their story.
Scattering the sheep
During discussions with the ATSGWTU just before the shutdown of the sugar industry in 2003, union leaders, including minister in the Labour Ministry and former union president, Rudy Indarsingh, heard a top-ranking PNM government official saying, “Too many so-and-so leaders coming out of the All Trinidad union. That s--- must stop.” Jaglal, during an interview at Rienzi Complex, said, “It was a political move by the past administration to not only close down the sugar industry, but also shut down the union.
“It was a move against Panday. It was a way to get rid of Panday,” Jaglal, 68, said.
Jaglal said actuaries’ reports on the evaluation of workers’ pensions showed the shutdown of Caroni was in motion a long time before.
“When Caroni closed down, all factors relating to the shutdown of the company were already in the pipeline.
“It was well thought out. It was a plan to destroy the leaders in the sugar belt.”
Jaglal, 40 years with the union, said opposition politics was becoming a serious thorn in the flesh of the PNM, the first government to be elected when T&T began to move out from under colonial authority.
“A serious transformation was taking place on the political landscape. The ULF was born in 1975 from various trade unions at the time.
“The party was established by union leaders in an attempt to unify black workers in the oil industry and Indian workers on the sugar estates.”
The PNM had won the 1956 general election, but by 1976, the ULF got ten seats from an alliance with the Tobago-based Democratic Action Congress.
Indarsingh, corroborating Jaglal’s claims, said Hansard records him saying in Parliament that the decision to shut down the sugar industry was a political conspiracy to destablise the union and its supporters in the sugar belt.
“Other union members and myself were present. The PNM minister said the union was a breeding ground for young, upcoming politicians and the time had come to break it.”
Speaking in Parliament during debate on the Sugar Industry Control Board in December 2013, Indarsingh had said the closure of the industry came when the political dynamics began to change following the 1995 general election.
In 1995, the UNC and the PNM tied 17-17 but the UNC formed an alliance with the National Alliance for Reconstruction (NAR), which had two Tobago seats, and formed the government.
In 2001, the PNM and UNC tied 18-18 but the PNM was put in government by then president Arthur NR Robinson who said the UNC did not have the moral authority to lead the nation.
“As soon as the political dynamics shifted from 19-17 to 18-18, plans for the sugar industry moved from one of stabilising and consolidation to one of closure,” he said.
“The then administration allowed the assets of this company to be plundered, pillaged and, of course, to be benefited by those who were favourable to them in terms of political patronage at that point in time.”
The state’s milking cow—‘The shutdown was no simple plan’
Whereas Tambie traces the shutdown of T&T’s sugar industry to Europe, Jaglal said the EU’s involvement came only after, when they came up with an exit strategy to assist farmers.
Tambie said European markets had been buying T&T’s (and other countries’) sugar at a guaranteed price.
The beginning of the shutdown came, he said, when three ACP (African, Caribbean and Pacific) states resisted this and the European Union took a decision to phase out the guaranteed price over a period of time.
But despite this, even Tambie agreed that the decision by the PNM government to shut down the sugar industry was a political one.
“I said so publicly when Basdeo Panday appointed me a senator in 2009,” he said.
Tambie said Caroni Ltd became unprofitable after the government took it over from British-based multinational agribusiness Tate & Lyle in 1975. It no longer contributed to the GDP.
“Caroni became a state milking cow. There was massive corruption and mismanagement. If properly managed, it could have been viable,” he said.
“It appears, therefore, the driving force behind the shutdown of the industry was an attempt to remove political clout from the opposition.
“If you attack the opposition’s supporters, their capacity to fight politically would have been removed. It was like a scattering of the sheep.
“There were about 9,000 sugar workers and 5,800 farmers, who employed another 3,000 cane cutters. Altogether, they were close to 20,000.”
These sugar cane farmers and workers lived in communities in the sugar belt in Central and South and were loyal supporters of the ULF and, later, UNC opposition party.
“When they were destroyed, they would have become disenchanted and would blame their leaders.
“It wasn’t a simple plan. Maybe it was well thought out,” Tambie said.
Maharaj, meanwhile, avoided the issue altogether. “I was not around when the industry was shut down,” he said.
They were treated like tenth-class citizens...they were fooled—Panday
Panday dismissed the idea that the directive to shut down the sugar industry came from Europe.
“The PNM shut the industry down arbitrarily. They didn’t have to get any directive from the European Union.
“It was when the government closed the industry that the EU decided to provide funding which would help sugar workers come out and grant them some kind of relief.”
Discreetly avoiding any outright mention of a political plan behind the move, Panday said, he advised sugar workers not to accept the Voluntary Separation of Employment Package (VSEP) being offered by the government to the workers in 2003.
“They accepted anyway. They were promised training to deal with the changeover, land and so on. None of that was really forthcoming. They were fooled.”
Ex-sugar workers took the government to court for severance benefits promised them and won the case. The PNM appealed the ruling of Justice Deyalsingh.
Did the sugar industry contribute anything to the economy?
“The sugar industry provided foreign exchange when it was in short supply,” Panday said. “The government said it was costing more to produce sugar than to import it but it was not merely a question of that kind of economic cost.
“Caroni Ltd maintained roads, schools, drains, recreational facilities. It provided housing and medical treatment for citizens.
“When the company closed, the maintenance of a lot of roads and drains were abandoned.”
It was believed this contributed significantly to flooding in Central and South around that time.
Patrick Manning was prime minister when the sugar industry was shut down and promoted the idea that taking the Indians out of the cane fields was for their own good.
“He took them out and made them unemployed. If that was progress...,” Panday said.
“There were thousands of cases where people literally didn’t get their dues and were unable to live. Many died in poverty.”
Were ex-sugar workers treated like second-class citizens?
“I think it’s probably tenth class,” Panday said.
Panday said it was in a bid to give dignity to the former sugar workers that he had appointed Dora Bridgemohan, a cane cutter from Tacarigua, as a senator in 1976. Panday was leader of the ULP at the time.
“Women were the most militant set of sugar workers. They were no less than any other human being but were treated like the dregs of society.
“They lived that way so long that they lost confidence in themselves. People asked me why I put Dora as a senator when she couldn’t speak.
“I didn’t put her in the Senate to speak. I put her there to lend dignity to women who fought so valiantly in the industry.”
Rahael: It’s a far fetched theory...Caroni’s operating losses jumped from $97m to $367m
Former agriculture minister John Rahael, described by Panday as “the first person to decimate the sugar industry,” dismissed claims there was a well-planned political conspiracy behind it.
“That’s nonsense. That’s a far-fetched theory.” Asked what, then, were the PNM’s reasons for bringing the sugar industry to a halt, Rahael said he had nothing more to say.
There is no official report available to the public from the past administration on the shutdown of the sugar industry. According to media reports, in 2003, Rahael had said because government bit the Caroni bullet T&T would not have to pay $1 billion annually to keep the beleaguered company afloat. Rahael is reported to have said that despite annual government subventions of $600 million, from 1996 to 2001, Caroni’s operating losses jumped from $97 million to $367 million.
“If we were to continue like that, in the next two or three years, the subvention might have been $1 billion a year.”
He said the ailing sugar industry stood a “very good chance of survival,” if there was a restructuring process without interference by “recalcitrant elements.” Part of this restructuring included the creation of the Sugar Manufacturing Company.
In January 2004, then opposition leader Panday alleged the government had lined up private individuals to import sugar and was “intent on totally destroying what is left of the sugar industry.”
The UNC claimed then that the Trade Ministry “has been giving out several import licences to private individuals to import sugar into the country” and wondered whether these individuals had any affiliation with the ruling PNM.
Mismanagement, corruption at the highest level—Tambie
Former finance minister Karen Nunez-Tesheira, speaking in Parliament on a Caroni Ltd motion brought by the then opposition in December 2009, said the government expended a significant amount of money on counselling and retraining of former sugar workers.
She said Caroni Ltd was shut down because of 30 years of consistent losses from an industry that was intended to contribute to the GDP of the country.
Speaking on the same motion, Tambie, who was appointed an opposition senator by Panday, disputed the minister’s claims. Tambie said for 30 years the PNM government had made a profit of $2,000 on a tonne of sugar.
“The issue here is not that the sugar industry was making a loss; it was mismanagement and corruption to the highest level.”
Jennifer Kernahan, another UNC senator, had said the past administration apparently was determined to shut down Caroni Ltd and used the excuse that it was a drain on the economy to the tune of $200 million annually, and that the production price of sugar in Trinidad was uneconomical.
She countered that foreign exchange earned by the industry from export sales was US$175 annually. She said it kept 10,000 rural sugar workers and 15,000 cane farmers in gainful and productive employment and a rural community of over 300,000 was dependent on the operations of the industry for their economic survival.
Former Caroni Ltd director Dr Mahfouz Aziz also dismissed the idea of a political conspiracy behind the shutdown of the sugar industry.
“I don’t think any one government was responsible,” Aziz, who served as a director between 1996 and 2000 said. “In some ways, the Panday administration and the National Alliance for Reconstruction (NAR) also wanted to diversify the company. They all tried. It was not a deliberate thing.
“However, after the closure, there were those who wanted to grab the resources and do what they wanted. I have no qualms about saying that.”
Panday was seen as a failed leader by sugar workers—Aziz
Aziz said Panday, when he was in power between 1995 and 2001, wanted to diversify Caroni Ltd away from sugar but did not have a strong vision.
“He was seen by sugar workers as a failed leader.”
Aziz said during the NAR’s time in office, from 1986 to 1991, Ranjit Singh, an economist, served as chairman of the board of Caroni.
“They came up with a plan by Winston Dookeran, a minister at the time. It was the most comprehensive plan for the diversification of Caroni.
“They started and then governments changed (the PNM won the 1991 general election) and the project fell apart.” He said the PNM had a tripartite plan, involving workers, the government and the company, to write off a $2 billion Caroni Ltd debt.
“Since then, there has always been some effort, even when Dr Keith Rowley was agriculture minister, to do things for Caroni.”
‘Sugar production increased under Rowley’
Aziz said under Rowley sugar production actually increased after a long time.
“He had a lot of management support. A large part of the management in Caroni were of PNM persuasion.”
Aziz said lack of capital to develop diversification projects led to the failure of the company.
“I recalled being asked to do a livestock master plan for Caroni and finance minister Brain Kuei Tung giving $50 million to develop it.
“Five months later, I got a call saying they needed $30 million to pay workers’ salaries.”
Aziz said Caroni was not only growing sugar and did not have only sugar workers’ salaries to pay.
“The company was fat between senior and lower management. They needed to trim there a whole lot.”
He said Caroni also operated various other factories and estates, outside of sugar. “There were cocoa estates, Caroni was one of the largest owners of water buffaloes.”
He said the company, which also owned ten per cent of Plipdeco and had 69,000 acres of land, was rich in resources and could have been a very successful one today.
As for whether pillaging had any part to play in the company being unprofitable, Aziz said, “I would not say there was no corruption at Caroni.
“But it was not the cause of its closure.”
No response from Rowley
Opposition Leader Dr Keith Rowley did not respond to calls from the Guardian to his cell phone or a text message requesting an interview on the issue.
Continuing tomorrrow in the T&T Guardian