Tag: Workers

  • Minister urges FWSC staff to uphold quality service amid new facility

    Minister urges FWSC staff to uphold quality service amid new facility

    The Minister of Employment, Labour Relations, and Pensions, Ignatius Baffour-Awuah, has emphasized that while the inauguration of the new office complex for the Fair Wages and Salaries Commission (FWSC) marks a significant achievement, it should not be seen as an excuse for complacency.

    During the official opening of the facility on Friday, November 15, the Minister urged FWSC staff to ensure that the quality of service they deliver matches the high standards of the newly upgraded workspace.

    “I am confident that the new edifice will give you the self-satisfaction you need to work in an efficient and effective manner,” he said to the gathering, which included mostly workers of the Commission.”

    “You can have the best of office buildings, but if the service is poor, it means nothing. I want to entreat the staff to justify why the state invested in the facility,” he said.

    He went on to reiterate the government’s commitment to fostering an environment where workers’ well-being is prioritized, which in turn enhances productivity across the public sector.

    The newly inaugurated office complex, envisioned by President Akufo-Addo, is designed to provide FWSC with a modern and well-equipped environment to improve service delivery.

    The Minister concluded by expressing confidence that the new edifice would provide the staff with the self-satisfaction needed to work efficiently and effectively, while also urging them to focus on fulfilling the Commission’s critical mandate of advising the government on wage policies and workers’ conditions.

  • Workers at ATL launch sit-down strike demanding unpaid salaries and allowances

    Workers at ATL launch sit-down strike demanding unpaid salaries and allowances

    Employees at Akosombo Textile Limited (ATL) have initiated a sit-down strike, citing unpaid salaries and outstanding allowances dating back to 2021 as the primary reasons for their actions.

    The striking workers allege that the company’s machinery has been dismantled and sold as scrap, painting a grim picture of its operational capacity.

    Expressing concerns over inadequate compensation, they highlight instances where some employees reportedly earn less than GH¢500.

    This independent strike, launched on Friday morning, was not endorsed by the local textile workers union’s leadership, whom they accuse of neglecting their interests and aligning with management.

    Wary of potential repercussions from management, workers have refrained from granting interviews.

    Nevertheless, they convey their discontent with the prevailing situation, blaming the government for portraying ATL as stable despite its deteriorating condition.

    ATL’s financial challenges and operational sustainability have been recurring themes in recent news coverage. In various reports, workers have appealed to the government to urgently intervene, addressing their grievances to alleviate the hardships faced by employees and ensure ATL’s viability.

  • Old Mutual report reveals widespread financial stress among Ghanaian workers

    Old Mutual report reveals widespread financial stress among Ghanaian workers

    A recent report from the 2023 Old Mutual Financial Services Monitor indicates that only 14% of working Ghanaians are satisfied with their current financial situation.

    The study sheds light on financial stress levels, revealing that both the informal sector and local income earners in Ghana face significant financial challenges.

    The report highlights that 68.0% of those facing financial stress belong to the informal sector, while 55% are part of the formal sector. The findings underscore the financial strains experienced by a majority of Ghanaians, with implications for their overall well-being.

    Dependents and Financial Priorities:

    The study also explores the prevalence of dependents among Ghanaians, revealing a high incidence of dependents, particularly among older and more affluent consumers. Less than half of those surveyed fall into the category of ‘sandwich generation’ individuals, and the report notes that most dependent children belong to the respondents themselves.

    Income security emerges as the top financial priority for Ghanaian consumers, followed by efforts to manage expenses downward, including delaying major expenditures and opting for more affordable retail brands. Notably, paying off debt ranks sixth among financial priorities.

    Household Income and Spending Patterns:

    The report provides insights into Ghanaian household spending patterns, indicating that consumption constitutes just over half of household spending. Savings make up a quarter of spending allocation, while debt servicing accounts for only 9% of household income allocation.

    Despite financial challenges, Ghanaians exhibit discipline in debt management. The study reveals that one in four Ghanaians has had to borrow from friends or family, and one in five has fallen behind on household bills in the last year. Additionally, six in 10 individuals have tapped into their savings to meet financial obligations, with less than a quarter using credit cards.

    The Old Mutual report offers a comprehensive overview of the financial landscape in Ghana, emphasizing the need for tailored solutions to address the specific challenges faced by different segments of the population. As economic conditions continue to evolve, understanding these financial dynamics becomes crucial for policymakers and financial institutions seeking to support the financial well-being of Ghanaians.

  • TUC advocates for higher pay in order to enhance pension benefits

    TUC advocates for higher pay in order to enhance pension benefits

    The Trades Union Congress (TUC) of Ghana has committed to advocating for higher wages for workers across both formal and informal sectors.

    Their goal is to adjust the minimum wage to better reflect the increasing cost of living, ultimately improving pension benefits.

    The TUC seeks to replace the current minimum wage with a living wage in Ghana. Presently, 5.5% of a worker’s salary is deducted each month, with 13% added to the basic salary. This amounts to 18.5%, with 13.5% directed to the Social Security and National Insurance Trust (SSNIT) for tier 1 and 2 pension schemes.

    TUC is working to secure a more equitable minimum wage package for all workers in 2024, addressing the country’s salary structure to enhance financial security and retirement planning.

    “We have taken into consideration to see how best we can improve salaries for workers so that they can pay a bigger premium to end them a better pension. Salaries in general have been very very low in this country and it started from Adams time, and we have been trying to increase earnings of workers in this country.”

    He added “If we want a better pension then our basic salaries must also be big so it is something that the unions are taking into consideration that is why for some time now we have been clamoring for a living wage instead of a minimum wage. Living wage may increase the basic salaries of workers so when they pay their premium it will end them better pension in the future.”

    Out of Ghana’s labor force of 11.5 million, 9.9 million are actively employed, and 6.7 million are self-employed. Unfortunately, just 9% of the self-employed have pension coverage, with a mere 0.85% (around 1.2 million individuals) covered under the SSNIT scheme.

    To bridge this pension coverage gap, SSNIT, in partnership with the Trades Union Congress (TUC), has initiated the ‘Self Employment Enrollment Drive’ (SEED). The primary goal is to enroll informal sector workers into the pension scheme.

    During the launch of the Self Employment Enrollment Drive in Koforidua, Dr. John Ofori Tenkorang, Director General of SSNIT, highlighted the program’s success, noting that informal sector enrollment has increased significantly, rising from 14,000 to 57,000 recently.

    Dr. Tenkorang emphasized the importance of these contributions in ensuring the financial well-being of workers and securing additional insurance benefits.

    “If they(informal sector workers) too join us and pay their contributions they can have partial income replacement with annual increments till good Lord calls them home, and even when they are working and God forbid they pass away before they attain the age of 60 we realized there are children and other love ones who depend on that person so they automatically get life insurance so when they are no more SSNIT take care of the people they left behind”.

    Dr. Koranteng also revealed that “one other benefit that most people don’t know is while you are working if God forbids you were to become invalid meaning you have an accident or sickness and Doctors declare you as permanently disable and unable to engage in any gainful employment irrespective of how old you are SSNIT is supposed to replace the income that you have lost not for one year not for three years but for as long as you live.”

    He also said contributors get Health Insurance for free.

  • US Embassy in Zambia sacks workers over fraud allegations

    The US embassy in Zambia has dismissed 10 employees for alleged fraud, misconduct, and corruption.

    While the statement did not disclose their names or nationalities, it emphasized that no organization is exempt from corruption, which has detrimental effects on public services, national unity, and economic development.

    The embassy highlighted its commitment to combating corruption in Zambia despite facing similar challenges in the United States.

    This move doubles the number of American and Zambian staff terminated by the US government in the last 18 months due to fraud or corrupt practices.

  • SSNIT ramps up effort to cover more than 500,000 independent contractors

    SSNIT ramps up effort to cover more than 500,000 independent contractors

    Under the Self-Employed Enrolment Drive (SEED), the Social Security and National Insurance Trust (SSNIT) is stepping up its efforts to register more than 500,000 self-employed individuals by the end of the year.

    The focus on pension plan for the self-employed is to provide income replacement and a guaranteed source of income during old age or permanent disability for the self-employed mostly in the informal sector.

    Out of an estimated workforce of 11.5 million, according to the 2021 Population and Housing Census, there are over 9.9 million working population with 6.7 million being self-employed in the informal sector, which forms about 85 per cent of the Ghanaian economy.

    As of April 2023, however, only 1.9 million workers are active SSNIT contributors with the private sector providing 62 per cent, and the public sector having 36 per cent of contributors.

    The self-employed,  mostly from the informal sector, makes up 1.8 per cent.

    Speaking at a media training programme on SEED, Mr Charles Akwei Garshong, the SSNIT Public Affairs Manager, said increasing the enrolment of self-employed was needed to help SSNIT fulfil its mandate of providing pensions for all workers in the country.

    “It’s our responsibility to ensure that every worker in Ghana has social protection. The SEED would help reduce old-age poverty and over-dependence on benefactors such as family relations, friends, and the State,” he said.

    He highlighted the modalities for contribution as a self-employed to include declaration of a monthly salary, paying 13.5 per cent of the declared salary monthly and subscribing to a flexible periodic payment option of either a monthly contribution, quarterly, semi-annually, or annually.  

    Those payments, he said, could be made through mobile money wallet, debit cards, partner banks, at SSNIT offices and via USSD code.

    He, however, pointed out that declared salaries could only be adjusted annually.

    Mr Garshong said the SEED initiative would include a “Ye wo Abonten” campaign, which would be held on the last Friday of every month where staff would visit targeted business enclaves and other public centres to educate and enrol self-employed and informal sector workers.

    He called on the media to encourage the self-employed and workers in the informal sector to join the Scheme as it was one of the surest ways to reduce and prevent poverty among the aged.

  • 4.8 million Ghanaian workers can’t access good healthcare, education – GSS

    4.8 million Ghanaian workers can’t access good healthcare, education – GSS

    The Ghana Statistical Service (GSS) in its 2022 Labour Statistics report has revealed that 5.4 million Ghanaians in the labour force are multidimensionally poor.

    Out of this figure, 4.8 million are those employed.

    Multidimensional poverty encompasses the various deprivations experienced by poor people in their daily lives – such as poor health, lack of education, inadequate living standards, disempowerment, poor quality of work, the threat of violence, and living in areas that are environmentally hazardous, among others.

    The report indicates that the part of the labour force being employed earn so little they are barely able to take care of their basic needs.

    According to the GSS’s report, as of the 2nd quarter, 46%  representing 14.1 million of the entire Ghanaian population were multidimensionally poor.

    The data revealed that there are relatively more multidimensionally poor persons in the Ashanti Region than in any other region with a sizable number of 2.1 million in Q2 of 2022.

    The report stated that among the multidimensionally poor, deprivation in health insurance coverage and unimproved toilet facilities are the plausible drivers of poverty in Ghana.

    Deprivation in health is the largest contributor to multidimensional poverty, with a 44.1% rate, followed by standard of living at 32.8%, and education at 23.1% as of Q2 2022.

    Meanwhile, Global Multidimensional Poverty Index Report 2022 by the United Nations Development Programme (UNDP) indicates, that 24.6% of Ghana’s population based on a 2017/2018 survey, are multidimensionally poor.

  • 1,500 Brazilian construction workers sacked over DDEP in Kumasi

    1,500 Brazilian construction workers sacked over DDEP in Kumasi

    Over 1,500 construction workers employed for the construction of the Kumasi Central Market, Kumasi International Airport, and the Komfo Anokye Teaching Hospitals Mother and Baby Units (MBU) have had their contracts terminated by a Brazilian construction firm known as a “Contractor”.

    The company in December 2022 began terminating employees appointment in accordance with the Labor Act in monthly batches, affecting a total of 1500 employees.

    A management member of the company revealed, under the condition of anonymity, to GHone TV’s Ashanti Regional Correspondent, that all the affected employees received a one-month notice of appointment termination followed by a compensation package.

    “Management didn’t want to violate the country’s labour laws so we followed every step including medical check out. This is not something we intended to do but the situation has forced us to do that,” the management member stated.

    He disclosed that the Kumasi airport phase two projects which is about 95 percent completed left with installation of gadgets, control towers, and extension of round ways.

    The management member added that the demolition of existing structures is all on hold due to lack of funds to facilitate the completion of the entire project.

    “The project has been affected by the ongoing government debt restructure programme. Government, I mean the finance minister has suspended external payment. So the UK government responsible for founding the project has stopped releasing funding to us to work on the project. So we are ready to work but we don’t have money to pay workers and buy material so that’s the problem we are facing at the moment,” our source explained.

    He continued: “At the moment only few administrative staff are currently working with the company doing administrative work with few drivers. All our vehicles have equally been packed at our warehouse. So for now there’s no work on any of our sites.”

    Central Market Phase Two Project

    The Central Market project sod cutting was held on 2nd May 2019 by President Nana Akufo Addo in company of Asantehene Otumfuo Osei Tutu II and expected to be completed by the end of March 2024.

    However, the construction firm disclosed they can’t meet the deadline due delays on the project, a development they stressed is beyond their control.

    “We can’t meet the deadline for the traders to come and trade in the Central Market. This is because the former Kumasi mayor failed to relocate the traders on time for the project to start on time as we wanted. We have already wasted a lot of time on this project before this IMF recommended debt restructure programme affecting the entire project. You know money and equipment were ready but KMA didn’t show any commitment to them to support the project. At some point the UK government wanted to take their money back until Regional Minister Simon Osei-Mensah’s intervention.”

    Meanwhile, Central Market traders who were relocated to the racecourse market and others who have no place to trade are expected to hold a major demonstration against the government on Monday 13th March 2023 over the stalled Kumasi Central Market project.

    Manhyia Palace

    Another source close to Asantehene Otumfuo Osei Tutu II also confirmed Otumfuo Osei Tutu II has been briefed about the stalled work on the three sites. As a result of the debt restructuring programme proposed by the IMF that the government is depending on a loan to restructure the country’s collapsing economy.

    “You all know the role Otumfuo played behind the scenes on this project. The King is aware of the situation. He will soon travel to the UK for the coronation of King Charles the King of Great Britain in the coming days and this issue will be looked at. It’s unfortunate but these are priority projects which are dear to Otumfuo and fall within the Asanteman development agenda so Otumfuo will take the right step I can assure you of that”.

  • Full-time workers adding ‘side-hustles’ to survive

    One would have thought that corporate workers doing full-time jobs would opt to use their weekends and other free time to take some rest. But that is far from the present situation, as workers are now adding more work to maintain their standard of living.

    Data from Ghana Statistical Services show that consumer inflation has further increased to 37.2 percent in September 2022 – inching ever-closer to the 40 percent mark last seen in the early 2000s. The annual inflation rate accelerated for the 16th straight month by 4.7 percentage points from 33.9 percent in August, the highest reading since June of 2001 when inflation recorded 36.8 percent. This makes it the highest rate recorded in 243 months, equivalent to 21 years, three months.

     

    The increase in price pressures continue to be fuelled by elevated petroleum and transport costs, as well as higher food costs and a weakening local currency.

    The current economic hardships, characterised by hikes in price of almost every commodity on the market, has eroded the value of consumers’ income; thereby creating uncertainty about the future. This has compelled some of workers to engage in various small businesses to beef-up their income to survive.

    Some who spoke to the B&FT said the move has become necessary, as their regular income is no longer able to cater for all their needs.

    A journalist for an Accra-based online news platform, Beyonce Diamond Kpogli, says the only way she is surviving is by taking on additional side-jobs – the preparation and sale of chilli-sauce, popularly known as shito.

    “Without my side-business, I don’t know what would have happened to me now.  I prepare chilli-sauce (shito) and sell. I also work with a borehole drilling company as a social media manager.

    “I engage in other businesses due to the current standard of living in the country. Things are really expensive; and with what I earn from corporate work, I cannot survive on it alone,” Ms. Kpogli said.

    Rahmat Sulaiman, a public servant, works full-time and also runs a mobile money business as a merchant – and also sells fragrances and veils on the side to support her salary.

    According to her, it is due to hardship and the unstable economic conditions that she has had to stress to work so much.

    “Times are very hard, and I am unable to survive on my salary. When the salary comes in at the end of the month, it can get finished in about week because of how prices of commodities have shot up and keep increasing each day. If I wasn’t doing all these businesses, I don’t know how I would survive.”

    She also lamented that even though there are constant price hikes in commodities, salaries are not being raised – a situation she said is worrying.

    Asked how she manages to combine all these duties, Rahmat said she mostly does it remotely. For instance, with the mobile money, she facilitates transactions for her colleagues and operates at home, too, when she closes from work and during weekends. The fragrances and veils, she said, are done online based on orders.

    Inna Hajar Osman’s story is no different. She is currently a process clerk at the Judicial Service of Ghana, but also planning on starting a small online business aside from her job. Before she got her job at the Judicial Service she was running a small food business; however, she was sent to a different region, which made her quit the food business.

    According to her, her current salary is not enough; and so adding a business will enable her to cater for her needs and also enhance her savings.

    She said: “My monthly salary is not dependable; it vanishes into thin air after I receive it. So if I should add any side-business, it will help sustain me before my salary comes in; and I will even be able to save”.

     

    Source: thebftonline.com

  • Release cash from sold scrap to save Railways Company from collapsing – Workers

    The Railway Workers Union has called on President Akufo-Addo to immediately direct the Railways Ministry to release some GH¢6 million realized from the auctioning of scrap metals of Ghana Railways Company Limited.

    This, they say, will help purchase fuel and finance other operational costs to save the Railways company from collapsing.

    Speaking to Citi News in Takoradi, the General Secretary of the Railway Workers Union, Godwill Ntarmah, said the Railway company is “on the verge of collapse and unable to buy fuel to run its manganese haulage lines as well as pay workers their two months’ salaries in arrears.”

    They are therefore appealing to government to release the funds to ensure the company survives.

     

  • 15% COLA hits workers accounts

    Workers across the country have started receiving the monthly 15 per cent Cost of Living Allowance (COLA) agreed upon between the government and Organised Labour.

    The Controller and Accountant General’s Department (CAGD) credited workersaccount with the allowance on Monday, August 29, 2022.

    The July 2022 arrears and that of August 2022 were paid together.

    The total amount paid for COLA for the two months is about GH¢485million, Graphic Online has gathered.

    The government and Organised Labour agreed for the allowance, to be paid at a rate of 15 per cent of base pay and to take effect from July 1, 2022.

    The negotiations between the government side and Organised Labour concluded on Thursday, July 14, 2022.

    Organised Labour had initially demanded a 20 per cent COLA but it was slashed by five per cent to 15 per cent.

    Workers in the educational sector for instance embarked on an industrial action on July 4, 2022 in relation to the COLA.

    Source: Graphiconline

  • Better days ahead for workers – Ho, Keta MCEs

    Mr Prosper Pi-Bansah, Municipal Chief Executive for Ho, Friday said Government was working around the clock for workers to enjoy their contributions to national development, saying, “there are better days ahead for workers.”

    He said the decision by Government to absorb water and electricity bills to cushion the citizenry in the wake of COVID 19 signalled Government’s commitment to the welfare of workers.

    Mr Pi-Bansah said this in a “Workers’ Day” message through the Ghana News Agency.

    He said more was being done behind the scenes for the Ghanaian worker and called for support for Government.

    The MCE asked workers to recommit themselves to the service of the nation, work harder and meet targets to grow the local economy.

    He said the Ho Municipal Assembly was working towards creating an enabling environment to grow local businesses to create jobs.

    Mr Godwin Edudzi Effah, Keta Municipal Chief Executive, also said there were plans to make workers in the Municipality happy after COVID-19.

    He said the Assembly had recognised the contributions of workers, especially those in the informal sector to the local economy and said “they will reap their sacrifices after God has taken this COVID-19 away.”

    Mr Effah said the Assembly was establishing a special fish market and also working on a fish landing site to attract fishing vessels and reposition Keta as ‘home of fish.’

    He said plans were also afoot to engage other players in the informal sector on ways to grow the local economy and create jobs.

    The MCE congratulated workers in the Municipality and urged them to work with the Assembly to attract the needed support and investments for mutual benefit.

    Source: GNA

  • Angry workers spurn Ethiopia’s ‘industrial revolution’

    Zemen Zerihun thought he’d left farming behind and found the ticket to a better life when he began a job cutting fabric for a clothing company at a massive industrial park in southern Ethiopia.

    But the 22-year-old ended up quitting within months, weary of working eight hours a day, six days a week and still not making ends meet earning $35 a month.

    Managers were so strict they would go into bathrooms and yank out workers deemed to be taking too long, he said.

    His supervisor would loudly berate him as “slow” and “lazy” when he failed to keep pace on the production line, he told AFP.

    “After I joined the company, I suffered,” he said. “The supervisors treat you like animals.”

    Experiences like his highlight a major challenge facing Ethiopia’s push to embrace industrialisation and become less dependant on agriculture.

    By attracting foreign investors through cheap labour, it wants to follow the model of China and other Asian nations in creating a robust manufacturing sector that can offer badly needed jobs for its young workforce.

    But despite high unemployment, young Ethiopians are not going along with it, preferring to quit rather than stay in jobs where they feel underpaid and disrespected.

    Thousands of employees have already walked out of the country’s new and burgeoning network of industrial parks.

    At the Hawassa Industrial Park, where Zemen worked, staff turnover in 2017-18 “hovered around 100 percent,” according to a May 2019 report from the Stern Center for Business and Human Rights at New York University.

    The added recruitment and training costs are a main reason why, in the eyes of manufacturers, Ethiopian labour has “turned out to be considerably more costly than the government had initially advertised,” the report said.

    Government officials say they are taking steps to address workers’ concerns while balancing them with industry representatives’ interests.

    But labour organisers argue the measures are too little, too late, leaving them no choice but to begin unionising the parks — a development Zemen says is long overdue.

    “The government needs to pay attention to what is happening in the industrial parks,” he said.

    “They think they are giving everyone good jobs, but some of the workers, they are really struggling.”

    A lofty vision

    Prime Minister Abiy Ahmed sees industrial parks as an important engine of growth that can help stave off unrest ahead of elections tentatively planned for August.

    Yet the strategy was adopted several years before Abiy came to power, after the government realised in 2014 that agriculture couldn’t provide enough jobs for a booming population, said Arkebe Oqubay, an architect of the strategy and now special adviser to the premier.

    Ethiopia is one of Africa’s fastest-growing economies but youth unemployment remains a major problem.

    The World Bank estimates that two million people enter the workforce every year.

    Despite long-running efforts to restructure the economy, officials estimate that manufacturing still only makes up 10 percent of economic activity.

    As they work to ramp up the sector, officials say they have learned the lessons of places like Bangladesh — where at least 1,134 people were killed in the Rana Plaza factory collapse in 2013 — and are committed to avoiding unsafe and unsustainable working conditions.

    The flagship Hawassa park, a campus of 52 factory sheds occupied by American, European and Asian companies producing garments and textiles, opened in 2017.

    Its roughly 30,000 workers sew fabric into T-shirts, sportswear or other sought-after items.

    By year’s end, some 30 industrial parks will be operating across Ethiopia, specialising in sectors like machinery production and information and communications technology, Arkebe said.

    Currently 12 parks have been built.

    The parks have already yielded dividends, Arkebe said, raising foreign direct investment to $4.3 billion in 2017 — a fourfold increase over five years earlier.

    But wage levels are under the spotlight.

    – Attracting investment –

    The $26 monthly base pay at Hawassa makes Ethiopian garment workers the lowest paid in the world, the NYU Stern Center report said.

    Though the amount is not uncommon for entry-level employees in a country with no minimum wage, workers say it barely covers food, transport and rent.

    Even those leasing cramped apartments with three or four co-workers and sleeping in shifts on shared mattresses say they don’t make a decent living.

    Eight months after resigning, Zemen is living with his family and still looking for a new job, but he has no regrets.

    He’d rather grow food for himself on the family farm than toil at the factory which he’d initially seen as his escape, he said.

    He is far from the only worker to have quickly grown disillusioned when the reality of factory life failed to match his expectations.

    Tony Kao, deputy general manager of JP Textile, said Hawassa workers faced challenges switching from agricultural to industrial work.

    “It took some time for them just to learn industrial work. They now have to be on time to work and now they have to learn new skills, they have to learn how to operate the machines which is a whole new chapter for them,” he said.

    Medihant Fehene left her Hawassa factory job, too.

    “I’d have to wake up to catch the bus at 5:30 to start work at 6:00, or if I took the afternoon shift I would not get home until 11:30, when it’s dark and not safe for a woman to be outside,” she said.

    Among measures the government is exploring to address such frustrations is giving companies land for dormitories for workers to rent at subsidised rates, Arkebe said.

    However, he also defended low wages, saying they help ensure firms invest in Ethiopia rather than countries where manufacturing is more established.

    “If wages are high and investment doesn’t come, new employment is not going to be created,” Arkebe said.

    “The livelihood of workers can improve when their productivity improves,” Arkebe added, comparing the process to the “industrial revolution” in Britain and the United States.

    ‘It’s the future’

    Such statements play well with industry representatives.

    “Ethiopia is the garment future. Everybody’s looking at Ethiopia now,” said Raghavendra Pattar, head of Nasa Garment Plc in Hawassa.

    Ethiopian workers have had the right to organise since the 1960s, but Pattar said he saw no need for unions to be established at the industrial park.

    But Ayalew Ahmed, vice president of the Confederation of Ethiopian Trade Unions, told AFP that the first “task forces” to begin organising workers would form early this year.

    “If the employers volunteer to have trade unions in the company, that will be OK. Otherwise we will establish them outside the company,” he said.

    The government backs workers’ right to organise, provided it is not too disruptive, Eyob Tekalign Tolina, a state minister of finance and one of Abiy’s top economic advisers, said.

    Factory owners at Hawassa meanwhile seem to face no shortage of potential replacements for those who quit.

    On a recent morning, dozens of applicants waited in line to be tested on tasks such as threading needles or placing nails on a pegboard.

    Inside the park, 22-year-old Tekle Baraso Bonsa took a break from dyeing yarn to explain how he was using his $33 a month wage to put himself through university.

    “If I weren’t doing this,” he said, “I’d be shining shoes.”

    source: AFP