GAWU Credit Union recovering after major dent from closure of four sugar estates

The Guyana Agricultural and General Workers Cooperative Credit Union Society Limited, known as the GAWU Credit Union, concluded its 26th and 27th Annual General meetings on Saturday.
The meeting saw a small number of members gathering, in keeping with the COVID-19 guidelines, at the society’s registered office, 59 High Street and Wight’s Lane, Kingston, Georgetown.
According to GAWU, other members were able to participate in the meeting virtually.

Chairperson of the society’s Management Committee, Gaietri Baron, touted the success of the Credit Union, which faced a massive loss in membership after four sugar estates were indiscriminately closed in recent years, resulting in the loss of thousands of members. She noted that despite the setback, the society was steadily gaining membership as more and more workers are encouraged by the benefits and opportunities offered by the society. She noted that while this is pleasing, there was still more work that could be done.
She encouraged members to be ambassadors of the society and to assist in furthering the membership drive.

She reminded those gathered that the society continues to be prudently managed and every effort is being made to maximise benefits offered.
The society’s secretary, Sattie Basdeo, reported on the work and activities of the Credit Union. She noted that while there have been challenges, there is optimism as the re-opening of estates will offer the opportunity for increased membership.

She noted too that despite the difficulties, the Credit Union remained financially sound though remittances from GuySuCo to the society have been delayed.
The society is actively engaging GuySuCo on the matter and the Corporation’s indebtedness had started to decline. She drew attention to the fact that despite GuySuCo was not promptly making payments, members are able to conduct their transactions and receive their savings.
The society’s Treasurer, Seepaul Narine, disclosed that for the years 2018 and 2019, the society recorded surpluses $4,918,076 and $2,355,663 respectively.

He said that in both years, the Co-operatives Department of the Ministry of Labour had sought to have the society pay one percent of its working capital as Audit and Supervision fees.
“The significant fees demanded would have left the Credit Union with little or nothing to distribute to members, and as a result, representation was made to the Co-operatives Department to accept 10 percent of the surplus as it outlined in the law. The Co-operatives Society Act requires Societies to pay either 10 percent of their surplus or one (1) percent of their working capital as Audit and Supervision Fees to the Co-operatives Division.”

According to Narine, following the demand of the Co-operatives Division, the society represented for a 10 percent of the surplus to be paid to allow an appropriate sum to be available for distribution to members.
“After some consideration, the Co-operatives Division approved our request. On this matter, the GAWU had represented to Minister of Labour, Joseph Hamilton, that the act should be amended to require Credit Unions to pay 10 percent of their surplus as Audit and Supervision Fees.”

Apart from Audit and Supervision fees, statutorily the society is obligated to set aside 20 percent of its surplus towards its Statutory Reserve allowing the remainder to be distributed as the AGM approves.
“To that end, the AGM approved the payment of a 1.75 dividend to all members who had ordinary savings balances at the end of 2018. Apart from that, the meeting approved a 21 percent interest rebate of interest payments paid by members during 2019. These two measures will see members benefitting from nearly $5,000,000 in their accounts. This is testament to the commitment of the GAWU Credit Union to give back to its members.”

The meeting also elected a nine-person Committee of Management comprising: Gaietri Baron, Seepaul Narine, Aslim Singh, Harvey Tambron, Julius Nurse, Bhikram Singh, Sattie Basdeo, Lochan Khandai, and Orison Walcott.
A three-person Supervisory Committee – Kavita Bishun, Poorandatt Narine, and Jennifer Persaud – was also elected.
The Management Committee, at its first meeting, will approve the election of Chairman, Secretary and Treasurer of the society.

The GAWU Credit Union has been in existence for nearly three decades and continues to be an important avenue for workers to set aside monies for savings, GAWU said.
“It has enabled many members to acquire items for their homes, to assist in rainy days or even to set aside for their older days. We are proud to continue to provide this valued and valuable service as we recognize we are making a marked difference in the lives of many members and their families.”