Country paper Suriname The Crisis: Impact on people and - PDF document

Country paper Suriname The Crisis: “Impact on people and Organizations”. Ladies and Gentlemen, As many other countries in the world Suriname has not been spared from the effects of the Financial Crisis the world is facing these days. BHP Billiton, a multinational bauxite company which has been operating in Suriname for almost 70 years by next month has decided to leave Suriname by the year 2010. This decision might lead to the lost of ± 1100 jobs. One of the reasons they mentioned was that capital for investment is scarce and the declining price of alumina on the world market. And while BHP Billiton is preparing to leave Suriname the Suralco, the second multinational bauxite company in Surinam a subsidiary of Alcoa has put a freeze on investment plans and started to implement a reconstruction program, which might lead to the lost of ± 315 jobs of which 110 are directly entering into a redundancy plan. These figures were provided by Suralco themselves. The workers primarily affected by the redundancy programs are the so-called contractors. Workers who work for companies providing different kind of services for the bauxite sector in Suriname . Ladies and gentlemen, The Global Financial Crisis has put great constrains on one of the major export earning sub-sectors and one of the high wage sub-sectors in Suriname. The sub-sector bauxite, together with the sub-sectors crude oil and gold 1

are responsible for more than 80% of the total export earnings and 3% of employment in Suriname. We literally feel the crisis due to what is happening in the bauxite sector and the sectors related to the bauxite sectors. We have noticed some cautious at the side of employers in general when it comes to hire new personnel and investment. Ladies and gentlemen These intensions of the bauxite companies in Suriname has brought the global crisis into the homes and lives of workers and employers and there families as well as in the range of decision making of government. The cry out for more intense communication, the social dialogue we’re all talking about today is now more needed then ever. For the redundancy arrangements agreed upon by workers representatives and management should not be limited to selection criteria as - Fair, Performance based, objective approach: Absenteeism, no show o Service years (last in first out) etc. o But also be agreed upon with issues which ensure moving on for the period after this crisis. For indeed the crisis will pass through. Although multinationals have a corporate social responsibility and workers have their unions representing them, governments should take actions and if necessary, should draw up legislation to protect and support workers who suffer from the impact of this crisis. This legislation could of course be temporarily. 2

Government should together with the partners build more awareness among workers when it comes not only to their rights but more specifically when it comes to their role and support in the development and growth of the companies they work in. Workers need to fully understand the concept of productivity, need to follow procedures, need to be efficient also of course in their own advantage when carrying out their daily duties which will lead to enhance competitiveness of the enterprises. Also the task for government is to take a leading role with employer’s to start to build the awareness among employers to invest in the training and education of the workers. To support the productivity I spoke about earlier, and if necessary also draw up legislation or build structures and institute to protect employers from workers who move to another employer just as they finishes a costly training. To work towards these goals in Suriname the government namely the ministry of labour recently in February has put steps to bring employers and job seekers and unions together in a big labour market fair that was very successful. In the days coming we will discuss the outcomes of this fair with our social partners and set the path for the future dialogue issues when it comes to employment and productivity. The ministry fully agrees that live long learning is an important instrument to support both employers and workers. Another important step put forward by the government of Suriname is to institutionalize social dialogue in installing the Social Economic Council by law. We try to leave no occasion unused to put in place the structure for sustain employment and productivity. A 3

Skills development center is now being put in place, headed by the social partners with participation of different ministries like the ministry of education. In this center TVET under the direct responsibility of the ministry of labour has put serious steps to meet regional and international standards. With consultancy from Heart Trust here in Jamaica we are moving on in the process of modernization of the TVET institute in Suriname. I want to highlight one other effect of this crisis with a great opportunity for employment creation in Suriname. While the crisis is putting constrains on employment in the bauxite and relating sectors it is resulting into the creation of jobs in the ICT sector. Because of the crisis Suriname has become an interesting outsourcing and off shoring destination for companies in the Netherlands and Belgium (Dutch speakers like us in Suriname) transfer call center activities to Suriname. Due to these investments many youngsters are being employed. In closing, to reduce the impact of this crisis on people and organizations I can only emphasize: • more communication among the social partners, could be bi- partite while placing emphasis on retaining employment, • awareness when it comes to productivity to start with, before implementing, • investment in the skills of personnel, considering special programs for dropouts, workers affected by the crisis to have better re- employment opportunities • The private sector should seek and look for opportunities that appear due to this crisis, because there are some 4

• Closely monitoring by the government of the impacts of this crisis by both helping employers and workers. I want to emphasize monitor with long term perspective towards sustainable development Thank You. 5