MORE THAN 15,000 sugar-cane cutters were on strike in Guyana yesterday, the second massive walkout since mid-August in a dispute over wages.

The nationwide strike that started Tuesday forced the closure of all eight sugar estates owned by state-run Guyana Sugar Corporation, which produces all sugar in the South American country.

The government yesterday ordered an arbitrator to review the case and issue a binding ruling before exports to a lucrative European market are threatened.

Guyana is the Caribbean's largest sugar-producing nation, with its company, known as Guysuco, producing roughly 281,000 tons (255,000 metric tonnes) last year.

Guysuco chief Nick Jackson said the company might cancel arrangements with ships bound for Europe if the strike drags on. It cannot afford to pay US$6,000 daily for ships to lie idle, he said.

"We have reached a deadlock in talks," he said.

Previous strike

Workers are demanding a 14.25 per cent salary increase, while the company is offering a 5.25 per cent hike.

Average salaries range from US$200 to US$250 a month, a little more than what police officers or government clerks earn.

Another strike over pay shut down four of the sugar plantations earlier this month.

Around that time, Guysuco announced it would temporarily stop shipments to the Caribbean to meet export demand to Europe.

It blamed strikes, heavy rains and absenteeism for a drop in production.

Sugar exports to the Caribbean will resume when supplies are available, Agriculture Minister Robert Persaud said.

Trinidad and Tobago is expected to be hardest hit.

The twin-island nation bought 40,000 tonnes (36,000 metric tonnes) of sugar from Guyana last year.