Lake Asphalt on the chopping block also

THE EDITOR: While everybody is talking about the privatisation of the port, the NP gas stations, the long-running refinery saga and the coming retrenchment of half the workforce at WASA, the situation at Lake Asphalt of TT Ltd (LATT) is slipping under the radar. What situation?

Well information coming out of the state-owned La Brea-based company is that it is also on the chopping block, if it can find a buyer/joint-venture partner. This will result in what is known as reorganisation of the company, which is really a nice word for the elimination of jobs. The company employs approximately 300 workers, not all of them permanent.

Like most state-owned enterprises, Lake Asphalt has been used as a gravy train for political hacks and financiers. It has been horribly mismanaged over the years and the Government is now in a situation where it’s selling wind in order to keep political hustlers and confidence tricksters in the privileged position they have occupied over the years.

LATT is involved in mining, refining, manufacturing and distribution of high-quality road-building materials and other asphalt-related products for over 100 years. In the early 20th century it was probably the largest employer of labour in the industrial sector. Trinidad Lake Asphalt is the scientific name to describe asphalt after it has been refined.

The company also manufactures a range of bitumen emulsions and a line of asphalt-based coatings – the Lasco range of products, for instance Lasco Auto Underbody Coat, Lasco Pipe Guard, Lasco Sealant and Lasco Bituminous Black Paint. Ninety per cent of the revenue from sales of its core product, Trinidad Lake Asphalt, comes from export and the company has historically been a significant earner of foreign exchange.

The company has been engaged in upgrading its facilities at an estimated cost going forward of $66 million. It has embarked on a project to construct a new plant to produce a new product in an effort to expand and diversify its operations. The estimated cost of the project is $88 million and so far $11 million has been spent on research and development. Twenty million dollars has been budgeted to enhance bitumen storage facilities.

All those plans seem to be on hold as the economy goes into free fall. The company received a body blow with the closure of the Petrotrin refinery. As much as 80 per cent of its revenue came from the sale of bitumen which it sourced from Petrotrin.

It had to import bitumen from Barbados. The common external tariff on bitumen has been removed and Lake Asphalt’s customers are now able to bypass the company and import their own.

Workers at Lake Asphalt are members of the Contractors and General Workers Trade Union and the Estate Police Association. The dreaded word circulating within the workforce is VSEP, which is really retrenchment by another name.

According to the State Enterprise Investment Programme 2021, “The partial divestment of 49 per cent of the shareholding of Lake Asphalt of TT (1978) Ltd (LATT) to an international strategic partner is ongoing.”

So the cry in town is sell, sell, sell! The Government is moving like a piper. It is selling stuff that does not belong to it. Remember state enterprises belong to we, the people.

By the way, Minister of Labour Stephen Mc Clashie was up until his appointment a member of the board of directors.

GERRY KANGALEE

education and research officer

National Workers Union