Secretary General of the Ghana Federation of Labour (GFL), Abraham Koomson has emphasized that the high prices of cement and other essential goods reflect deeper economic issues.
He expressed concerns over a new legislative instrument (L.I.) aimed at regulating cement prices in Ghana, warning that it could stifle industrial growth and undermine investor confidence.
In a media interaction in Tema, Koomson criticized the government for not effectively tackling the underlying structural challenges of the economy, stating that those in power appear oblivious to addressing them. Rather than relying solely on regulations, he proposed that the Ministry of Trade and Industry engage in extensive consultations with stakeholders to negotiate more affordable prices.
Koomson urged Trade and Industry Minister Kobina Tahir Hammond and cement producers to convene and address concerns regarding the L.I. He raised these concerns following reports that Hammond had dismissed a petition from the Chamber of Cement Manufacturers to delay the law’s implementation, arguing that such legislation is crucial to prevent price-fixing cartels.
However, Koomson cautioned that the proposed stringent measures in the law, which include up to three years’ imprisonment for violating price regulations, could have adverse economic repercussions. His warnings mirror those of many in the business community, who fear that price controls could lead to unintended consequences such as shortages, black markets, and reduced investment in the industry.
This debate over cement price regulation underscores broader economic challenges in Ghana, including high inflation, currency fluctuations, and a significant trade deficit. As the government addresses these issues, it faces the delicate task of balancing consumer protection with the imperative to support businesses and foster economic growth.
The Ghana Federation of Labour (GFL) has been actively promoting talks about a potential raise in the retirement age, suggesting a change from 60 to 65 years.
The federation claims that reconsidering the retirement age could enable healthy retirees to continue making substantial contributions to the workforce, offering valuable experience and expertise.
In an interview with Accra-based Citi FM, Dr. Abraham Koomson, the Executive Secretary of the Federation, explained the reasoning behind the proposal.
He recounted an incident where a retiree, still in good health, was about to exit the workforce. This prompted the GFL to engage in discussions with stakeholders and the government, examining the potential of adjusting the retirement age.
“We were in a program where somebody was going for retirement, and we realized that the person was strong and fit and could have stayed on for a while. So, we realized that why don’t we discuss and put this across for stakeholders and government and see whether some adjustment could be made so that we don’t waste these people who have institutional memories to help the growth and development of wherever they will be working,” Dr. Koomson explained.
Yet, he recognized the need for a constitutional amendment to execute the suggested alteration. Initiating discussions with the government is essential because modifying the retirement age mandates a constitutional amendment. Dr. Koomson stressed that this process would demand time and careful consideration.
“We have to engage the government and discuss the possibility. It is constitutional, so it means the constitution should be amended. It will not happen overnight, so we have to engage in discussions,” he stated.
Making a comparison to the legal profession, Dr. Koomson pointed out that judges frequently serve until they are seventy years old, suggesting that people in good health may be able to continue working after the customary retirement age.
“Even if we go to the judicial sectors, I think they spend about seventy years or something. So if a judge could be working at the age of seventy, it means that at a certain age, if you don’t have any health challenges, the person will be okay to work,” he added.
In 2019, Mr. Kwesi Quartey, Deputy Chairman of the African Union Commission (AUC), stressed the need for Ghana to consider and reevaluate its retirement age, proposing an upward adjustment from the current age of 60.
Mr. Quartey argued that such reconsideration is essential for the country to leverage the valuable knowledge and experience of individuals within that age group who remain highly productive. He asserted that many individuals at the age of 60 are still active, productive, and at the peak of their capabilities.
Several developed nations have already shifted their retirement policies. By 2018, some countries had gradually increased their minimum retirement age from 60 to 62 years.
As the GFL advocates for this change, the ongoing dialogue with the government is expected to play a crucial role in shaping the future of retirement policies in Ghana.
The Ghana Federation of Labour (GFL) has underscored the importance of sustainable agricultural practices in ensuring the enduring viability of agricultural labor and enhancing working conditions.
The GFL has recommended that the government should promote the adoption of organic and/or regenerative farming methods, advocate for integrated pest management, and make investments in irrigation, soil fertility, and other essential inputs.
In a document addressed to the Minister of Finance titled “GFL Inputs for the Preparation of the 2024 Budget Statement and Economic Policy,” jointly signed by Mr. Caleb Nartey and Mr. Abraham Koomson, President and Secretary-General of the GFL, respectively, and shared with the Ghana News Agency in Tema, the following points were highlighted:
The GFL further proposed a focus on rural infrastructure and services, as these are integral to creating a supportive environment for agricultural labor. This entails ensuring access to affordable housing, basic services like water, sanitation, and electricity, and improvements in road and transportation networks.
The Federation of Labour stressed the importance of reinforcing labor rights and protections to guarantee the adequate safeguarding of agricultural labor, which is fundamental for establishing a safe and secure working environment.
“This includes ensuring that workers have access to collective bargaining rights and that labour laws are properly enforced,” the Federation stated.
The federation also called for improved access to credit and financing, which it described as essential for agricultural workers to invest in their operations and increase their productivity, by providing access to small loans, subsidies, and other forms of financial support.
The GFL also called for enhanced support for training and education to improve the skills of agricultural labour and ensure that they have the necessary knowledge and expertise too.
The Federation also called for a review of the current Pensions Act, Act 766, Act 2008, as pensioners receive reduced lump sum benefits as compared to lump sum benefits under PNDC Law 247.
The GFL stressed that an estimated 80 percent of retirees were made worse off in 2020 alone, adding that the numbers were expected to rise this year and subsequent years if urgent steps were not initiated to reverse the trend.
The GFL reminded the President to redeem to top up the deficit for those who received reduced pensions in 2020.
As part of the preparation for the presentation of the 2024 budget and in line with Section 21(1) of the Public Financial Act 2016 (Act 921), the Ministry of Finance requested that labour unions and identifiable groups submit inputs for consideration in the 2024 Budget and Economic Policy.
The Ghana Federation of Labour clarified that they have not yet received any formal proposal from the government regarding a potential reduction in their pension funds, commonly referred to as a ‘haircut’ by the government.
After a period of over five months during which pension funds were exempted, the government is likely to reverse its decision on a debt restruction program.
Reports state that the Akufo-Addo government has decided to include pension funds in the treatment of domestic debt. It is reported that the government aims to restructure approximately $2.7 billion owed to pension funds in upcoming negotiations.
But Abraham Koomson, the General Secretary of the Ghana Federation of Labour told Joy News that his outfit has not been alerted in that regard.
“We have a committee which is responsible for such meetings so as of now we have not been formally or officially invited to any such meeting,” he said.
However, Koomson disclosed that the association is expecting the government to approach them with a proposal for a ‘haircut’ and that government wanted such a negotiation in April 2023.
Ken Ofori-Atta, Ghana’s Finance Minister said
“We are expecting them to call…they wanted such a meeting in April but unfortunately the technical team had left for Bolgatanga for the May Day celebration so that meeting didn’t come on, but we are expecting that government will come back with a new date” he stressed.
Background
Upon the government’s announcement of its intentions to implement a Domestic Debt Exchange Programme (DDEP), the group to first request exemption was Organised Labour.
They made it clear to the Finance Minister, Ken Ofori-Atta, that pension funds should remain untouched.
Following weeks of protests and the looming threat of strikes, the government ultimately caught Labour by surprise by granting them a “Christmas present” which meant the government would proceed with the DDEP while ensuring that pension funds would not be affected.
More than five months after this assurance, Labour has been asked to come back to the negotiation table for fresh talks on the matter as the government struggles to balance the economy of the debt-ridden West African country.
Mr. Koomson explained that the Finance Ministry agreed to exclude pensions from the program on the condition that labor groups could establish an alternative plan in collaboration with the central bank. He revealed that labor unions had already initiated discussions with the central bank.
Based on data from the Central Securities Depository Pension, pension funds held approximately 6% of Ghanaian domestic public debt, amounting to 181 billion cedis ($20.1 billion) as of September 2022.
In the upcoming debt treatment talks with labor, the Finance Ministry aims to reduce approximately 30 billion cedis ($2.7 billion) from pension funds.
In February 2023, the government successfully reduced about 83 billion cedis of its domestic debt through the program. The participation rate was 85%, excluding T-bills and bonds held by pension funds. The average maturity of the reduced debt was 8.2 years.
The continuous enactment of new levies, according to the Ghana Federation of Labour(GFL), poses a risk to the country’s economic growth.
Mr Abraham Koomson, the GFL Secretary General, who spoke to the Ghana News Agency in Tema, said companies had employees and paid their salaries, as well as social security, contributing to the improvement of the standard of living for Ghanaians hence the numerous taxes could have adverse effect on their operations. .
He advised that government not to compel factories to move from the country because some companies had already begun to reduce their workforce, while others were planning to shut down soon.
Mr Koomson stressed that the closure of the companies would adversely affect government revenue all for its development programmes and increase the unemployment rate in the country.
He cautioned that if the local companies would not be revived for the survival of the country, foreign countries investing in the country must not be discouraged.
The GFL Secretary General urged the government to consider the implications of the Excise Duty Bill of 2022 on manufacturing industries, saying it would cripple companies and increase unemployment.
“The GFL continues to receive calls from Chief Executive Officers of companies and other stakeholders raising concerns that the new laws are rushed and passed without proper consultation to weigh the implications on industry, and by extension the fate of workers whose job security is guaranteed if industries break even,” he stated.
Mr Koomson said the products involved in the taxation among several others on the market, were already barely affordable because of the high cost of unit prices triggered by a combination of factors including water and electricity tariffs which saw an upward adjustment at the beginning of this month.
He added that high import bills for raw materials and the depreciation of the Ghana Cedi were all squeezing out capital by the day.
He said times had been hard, leading to companies having to adjust salaries of workers, break even to sustain operations; and the suspension of the new 20 percent bill would boost investor interest, guarantee sustained revenue inflows, and create more jobs.
The General Secretary of the Ghana Federation of Labour, Abraham Koomson, has bemoaned the “numerous” taxes Ghanaians have to pay.
He said that the finance minister, Ken Ofori-Atta and by extension, the government is confused about how to run the economy because there are already about 17 taxes.
His comment comes on the back of the passage of the three revenue bills; Excise Duty, Growth and Sustainability Levy, and Income Amendment Bills. Something he says will add to the excruciating burden the ordinary Ghanaian is already going through.
“This government, they are confused especially the finance minister who doesn’t know what he is doing. Already, about seventeen taxes are being paid, we have import duty which is 5%, import VAT of 15%, processing fee, ECOWAS Levy, Network Charge VAT, Network Charge Covid-19 levy, Health, Ghana’s Shippers Authority SNF fee, Import National Health Insurance, Network Charge National Health Insurance, IRS Tax deposit, Special Import Levy…
“Seventeen taxes are being paid before these three new ones so we don’t need taxes again,” he was quoted by 3news.com.
Reacting further, Mr Koomson said the Federation of Labour has tried unsuccessfully to have an audience with the finance minister after they got wind of the new taxes.
“Fortunately for us, we got wind of these new taxes that Ofori-Atta wanted to impose on us so we petitioned Parliament through the Speaker dated 3rd February 2023. GUTA also petitioned, AGI petitioned, to the extent that AGI even gave recommendations, they wanted engagements with Finance Committee of Parliament… the Food and Beverages Association of Ghana also petitioned, we even followed up, we went to parliament to meet the leadership there, for the speaker we couldn’t access him, we went there several times but he was involved in other things so we couldn’t access him. “Our problem now is that the taxes that we are paying, if they are not being applied well that is the situation that we will find ourselves in because we know that going to IMF comes with so many implications,” he told Moro Awudu.
He also added that these taxes must be put to good use, especially when the country is looking to secure some support from the International Money Fund.
“Our problem now is that the taxes that we are paying, if they are not being applied well that is the situation that we will find ourselves in because we know that going to IMF comes with so many implications,” he said.
The Ghana Federation of Labour (GFL) has called on the House of Legislature to engage critical industry stakeholders before taking any action on the new taxes that have been laid before it.
Currently, three new revenue mobilisation bills have been laid before Parliament.
In a statement issued by the Federation, Thursday, 30 March 2023, and signed by its Secretary General Abraham Koomson, the GGL said: “Considering the plight of workers under the escalated cost of living as a result of the insensitive economic policies of the government,” it deems it appropriate to draw the attention of the members of the House of Legislature “to do the needful to halt further deterioration of the conditions of living of people to avert social upheavals.”
The federation noted that Parliament by “constitutional mandate is positioned to check profligacy of the Executive to ensure good governance for the benefit of the citizenry for development.”
However, “contrary to expectations of the people,Parliament is seen as being complicit in implementation of outrageous Government policies which threaten to destroy businesses and render joblessness.”
It referred to its petition to the Speaker of Parliament, on Friday, 3 February 2023 in which it “drew attention to the numerous taxes already being paid by existing distressed businesses and the harm any additional taxes will do to investments,” and called for a stakeholder engagement before the approval of any new taxes by the House.
“As the new Excise Tax Bill and other Tax proposals await approval by Parliament, we entreat members of Parliament to engage the critical industry stakeholders prior to any action on the new Taxes,” the federation added.
It said the passage of the Bill, which is an amendment to the Excise Duty Act 2014 (Act 878) would increase the operational cost of local beverage manufacturers, which could inadvertently lead to downsizing of operations and laying off of workers.
Addressing the media, Mr Abraham Koomson, Secretary General of GFL, said introducing new excise duty at 20 per cent for non-alcoholic sweetened beverages, from 17.5 per cent to 20 per cent excise duty on mineral water, 45 per cent of duty for wines, including sparkling wine and 50 per cent for spirits, all at ex-factory prices, was not appropriate.
“The proposed 50% excise duty on spirits can be imposed on imported spirits only to allow local industry to grow.”
“Maintain the current excise duty on malts but exempt mineral water from the excise as the beverage industries have been under pressure from the harsh business climate,” he said.
Mr Koomson noted that even though the rationale of increasing excise duty was to generate revenue, the effort would increase the cost of production, which would be transferred to the final consumer.
“Indeed, if the principle of introducing cost to discourage consumption and its adverse consequences hold true, increased cost will as well lower demand and, therefore, the expected revenue projection is not likely to be realised,” he said.
He urged government to collaborate with industry players to engage, assess and identify the needed interventions most effective in promoting good health, sustaining livelihoods and aiding government generate needed revenue.
“We cannot afford to sit on the fence and watch our members reel under the ever mounting taxations on local manufacturing industry,” he added.
The GFL claims that it has been made aware of an upcoming tax bill that will seek to impose a 20% excise tax on locally produced fruit beverages and bottled water.
A statement jointly signed by the President of the GFL, Caleb Nartey, and the Secretary-General, Abraham Koomson, said the draft, which has been seen by some members of the Federation, shows that the framers seek to amend the Excise Duty Act 2014, ACT 878, to revise the Excise Tax rates for several products, including all sweetened drinks and processed fruit juices, which hitherto did not attract Excise duty. We bring more in the news desk report.
In the jointly signed statement, the GFL noted that the survival of locally produced fruit drinks and bottled water is already threatened by the increased cost of production and dwindling purchasing power of consumers, explaining that just last week, the Bank of Ghana, in its determination to fight inflation, which stands at 54 points per cent as of December 2022, increased its policy rate to 28 percent, which will lead to a higher cost of borrowing.
It was again mentioned that the value-added tax has gone up by two-point-five percent, aside from the Bank of Ghana’s recent policy, thereby suffocating manufacturing companies in the country.
According to the GFL, while Organized Labour expects well-crafted policies to protect local industries, the government has rather slapped an astronomical increment of 30% in electricity and 50% on water for the industry, which took effect on February 1, 2023, coupled with fuel prices that remain high with no clear signs of a downward trend as the cedi continues to depreciate against the dollar.
The GFL says there is every reason to appreciate the government’s determination to raise revenue to meet its statutory obligations; however, at this stage of the economic crisis facing the country, with the uncertainty about investments in bonds ahead of an agreement on the Domestic Debt Exchange Program, the introduction of such a tax will not be healthy for the Manufacturing Industries.
The GFL emphasized that they cannot sit on the fence and watch their members reel under the ever-mounting taxes on local manufacturing industries as companies have drastically reduced staff and cannot wait for many more fold-ups. It appealed for further engagements for a level playing ground for all.
They should also establish enabling circumstances so that employees can reap the rewards of their labor.
Speaking at the Ghana News Agency Tema Industrial News Hub Boardroom Dialogue, Mr. Abraham Koomson, General Secretary of the GFL, said that employees should not be made to suffer because of the wrongdoings of the employer.
He reminded labour unions that the Labour Act 2003 fortified workers against any acts of omission or commissions that may be at the detriment of the worker, “the act forbids any action or policy that would make the employee worse off, let us hold on to the laws and defend our workers’ interest at all times.”
Mr Koomson reiterated the call for the government to reduce its expenditure drastically to set the tone of reviving the current economic recession in the country.
He said the government debt exchange programme would push people in the middle and lower class into absolute poverty which would have a huge impact on the development of the country.
Mr Koomson said the programme would also render most of the banks vulnerable which would in the long term affect the living standard of the citizenry.
“Some banks and financial institutions including insurance companies would collapse in the next five years, as confidence in the financial sector continues to wean.
“Most people are yet to overcome the impact of the banking sector clean-up, and now we are encountering a major financial earthquake, let us be careful not to totally destroy the financial base of the country,” he said.
Mr Koomson expressed concern that the relationship between the government and organized labour has become a fragile one with no trust, “2023 is going to be a year of intensified agitations to save the country.”
The GFL General Secretary also advised the military against any adventurous intervention which would destabilize.
He said organized labour would use internationally recognise labour procedures to get redress and redeem the economy.
The Ghana Federation of Labour (GFL) has called on the government to deepen broad-based engagement with Organised Labour in 2023 to reduce labour agitations, discontent, demonstrations and industrial actions.
Mr Abraham Koomson, the GFL Secretary General, who made the call at the Ghana News Agency Industrial News Hub Platform in Tema on Friday, said the posture of the government and its agencies in managing institutions had a direct correlation on industrial turbulence or peace on the labour front.
He noted that for Ghana to overcome the economic crisis next year, the government must build bridges and engage labour leaders in an open and frank discussion.
2023 offered the government an opportunity to listen to labour leaders as social partners to create a platform for deliberations and working together to accelerate Ghana’s development and ease economic burdens, he said.
Mr Koomson said the rigid posture of some government officials most often triggered unrest.
“The government needs to be willing to share ideas and involve social partners in deliberations on economic matters of the country instead of keeping conversations within its domains and seeking for help when issues get worse,” he said.
“Social partners can help the government in analysing key development issues and avoid situations like going to the International Monetary Fund (IMF) for assistance.”
Mr Koomson explained that social partnerships would accelerate inclusive growth and transform the Ghanaian economy, create opportunities, and create jobs to improve the living standards of the citizenry.
He said labour would continue to fight for what was right for employees, including better working conditions and value addition to the workforce to promote development.
He called for unity within the labour front to collectively fight for the interests of workers, adding: “We must rise up and fight for our fair share of the national cake”.
Mr Koomson said because of disunity among the labour unions successive governments had exploited the divisions and infiltrated into the leadership to pursue their political interests instead of fighting against labour injustice.
It was inappropriate for any labour union to put their political interests above the needs of workers, he said, and called for pragmatic solutions to the disjointed labour front.
He questioned why some workers retired on their full salary with other entitlements while others retired on virtually nothing.
“These are errors and unfair treatment in the labour front, which we must all work together to correct going forward”.
“We all work for the same state, either we all retire on our full salaries and other benefits or we all go home without it. The animal farm policies must give way”.
The Ghana Federation of Labour (GFL) Secretary General, Mr. Abraham Koomson, emphasized that Organized Labor, which includes all recognized unions and workers’ organizations, continues to oppose the government’s domestic debt exchange program.
Organized labor has aggressively opposed the debt swap program, according to Mr. Koomson, who claimed this in an interview with the Ghana News Agency (GNA) Tema.
To prevent any labor upheaval in the nation, he consequently urged the government to respect the viewpoint of labor unions.
“Organized Labour vehemently opposed to government’s announced of domestic debt exchange programme to satisfy the International Monetary Fund (IMF) conditions for a bailout from the self-inflicted economic mess,” he said.
The GFL Secretary General added that, “various workers’ organizations have spontaneously reacted against this programme having considered the devastating consequences on workers’ pensions, and other investments when implemented.”
According to him, the government had not demonstrated good faith in discussions with organized labour prior to opting for IMF support in addressing Ghana’s economic crisis.
He said it was on record that the government never considered going to IMF as a progressive alternative to revive the ailing economy.
“The 13 affiliate unions of GFL were taken aback by the government reneging on its assurance in Parliament never to seek IMF assistance in dealing with Ghana’s economic challenges,” he started.
The Ministry of Finance on December 04, 2022, announced its domestic debt restructuring programme; noting that “Under the Programme, domestic bondholders will be asked to exchange their instruments for new ones.”
Also under the programme, existing domestic bonds as of December 1st, 2022, would be exchanged for a set of four new bonds maturing in 2027, 2029, 2032 and 2037.
“The annual coupon on all these new bonds will be set at zero percent in 2023, 5 percent in 2024 and 10 percent from 2025 until maturity. Coupon payments will be semi-annual.”
Treasury Bills were, however, completely exempted and all holders will be paid the full value of their investments on maturity, according to the Finance Ministry.
The Ministry also noted that there would be no haircut on the principals of bonds, while individual holders of bonds would not be affected.
The Ghana Federation of Labour (GFL) has called on labour unions in Ghana to turn their attention to the government and policymakers whose actions are affecting the economy negatively.
Mr Abraham Koomson, GFL Secretary General making the call at a two-day International Labour Organization’s (ILO) sponsored workshop in Tema, said the energy the labour unions direct to their employers should now be channelled towards the government as companies were collapsing due to unfavourable policies.
The theme for the workshop was: “Innovative Strategies for Organizing Workers in the New World of Work.”
Mr Koomson said, “the labour movement has a responsibility to compel the government to do the needful to create a congenial business environment for industries to thrive to be able to retain employees and expand.”
He said companies were faced with clear and pressing threats both globally and internally as a result of bad government economic policies and a lack of commitment to promoting the growth of local industries.
He added, that, painfully, Ghana witnessed redundancies in many companies which used the negative impact of the COVID-19 pandemic as an excuse to lay off workers.
Mr Koomson said eight years ago, the power crisis that hit the country virtually crippled the expansion of businesses, adding that the shocks, high cost of production, unfair competition from cheaper imports and smuggling slowed down expansion and, in some cases, led to abuse of some workers.
He said though that was resolved by the close of 2016 with assurances of excess capacity to attract investments for growth and its associated guarantees for more jobs, Ghana was slapped again with another disturbing crisis.
“Trade Unions have made their stance clear against any IMF policy, but it is now obvious we have no alternative especially because of the alarming debt to GDP ratio which Bloomberg has projected to hit 84.6 per cent by the end of this year, with total national debt surpassing GH¢400 billion even before December 2022,” he said.
He added that “the state of the country’s economy today is even worse than anticipated following the junk status rating by Fitch amidst concerns about debt sustainability as the government negotiates with IMF.”
The Secretary-General said the GFL’s membership has declined by 45 per cent representing affiliates from both the formal and informal economy, particularly the Textile and manufacturing industries.
He explained that there was a direct correlation between happenings in the country to industry, access to capital, cost of production, purchasing power, profit, job sustainability, the possibility for expansion, and new opportunities for the unemployed youth.
Madam Inviolata Chinyangarara, the Senior Technical Specialist, ILO ACTRAV (Bureau for Worker Activities), in a goodwill message said the workshop was important and timely due to many reasons facing union activities.
Madam Chinyangarara said in many African countries, trade unions were losing members, strength, and influence as they were faced with challenges including declining trade union density.
She said weakening networks of trade union representatives, weakening links between workers and trade union structures, lack of young and women trade union activists, declining mobilising capacity and weakening social and political influence.
She added that the world of work is changing at a rapid pace, as there was the decline of jobs in manufacturing, the rise of non-standard and flexible work, persistence and growth of the informal economy, changes in employment regulations and the limitation and violation of trade union rights have caused unionization rates to fall in most countries worldwide.
She said increased precarious work and other forms of non-standard employment, as declining solidarity with vulnerable groups of workers such as migrants and workers in the informal economy were some of the factors to reckon with.
She said the digital economy and the way it was transforming jobs and employment relationships, and the social divide between workers with stable, paying jobs and workers with unstable, poorly paid, or precarious jobs, or no job at all has its effect on trade unionization.
She observed that the COVID-19 pandemic has added a new sense of urgency to the challenges facing workers’ organizations to respond to transformations in the world of work driven by globalization and by demographic, environmental and technological changes, as well as to play a crucial role in crisis mitigation, response, and recovery.
Madam Chinyangarara said for unions to contribute to building stronger, more sustainable, and equal economies and societies, workers’ organizations must continue to exercise leadership, demonstrate relevance, and provide quality services to their current and new members.
She stated that workers’ organizations also need to work with governments and employers’ organizations to develop a conducive environment for qualitative and meaningful social dialogue based on trust and respect for their rights and independence.
In a letter addressed to the Minister of Trade and Industry, the GFL made this claim. The letter was signed by the GFL’s President and General Secretary, Mr. Caleb Nartey and Mr. Abraham Koomson, respectively.
The federation stated in the letter a copy of which is available to the Ghana News Agency, that they were drawing the attention of the sector minister to the resurfaced illegal textile trade and the extremely high cost of local production.
In order to safeguard the struggling industrial sector, it thus pleaded on the Minister to act quickly.
The GFL noted that surveys conducted by its field officers revealed that the market outlets were dominated by over 70 percent pirated and counterfeit fabrics smuggled into the country through unapproved entry borders.
This development, it stated, has reversed the fortunes of the local manufacturing industry and compelled employers to lay staff off or completely shut down.
The Federation recalled that the Ministry of Trade and Industry took steps to address the self-inflicted challenges attributed to illegal trading in products manufactured locally to encourage investment in local production.
While expressing appreciation to the Ministry for the measures put in place to check the smuggling, pirating, and counterfeiting as well as grant zero value-added tax to sustain the local manufacturing companies, it did achieve its aim.
“Unfortunately, the anticipated benefits to boost local production have truncated as a result of the relapse of the problems afflicting the industry,†the GFL added.
The letter also stated that the distressed situation of the industry has been aggravated by the utility price hikes, and the high cost of labour rendering the pricing of products uncompetitive with the smuggled fabrics.
