2,858 workers lose jobs in 2009

Available statistics at the National Labour Department (NLD) show that a total of 79 companies nationwide filed for redundancy in 2009 as result of which 2, 858 workers were affected.
Their reasons' That the cost of production is too high, they are suffering from low levels of productivity and non-availability of capital, staff rationalization and outsourcing of some activities. Of the 79 companies that filed for redundancy, the industrial / manufacturing sector led by over 60%.

A source at the NLD explained that these companies range from pharmaceutical, mining, insurance, construction to hospitality industries.

The source at NLD attributes this despondent situation to the fact that unpatriotic people come in with goods from world over and are able to sell cheaply to Ghanaians who patronize them regardless of their quality.

Unfortunately, since local producers cannot sell their products cheaply because of high production cost they are left with no other choice than to reduce their labour force or close down totally.

With these constraints to investment and the growth of local industries, the source added, the saying that the private sector is the engine of growth may not materialize if these complaints of the business community are not resolved.

In fact, he stressed, the companies would continue to fold up with the NLD receiving more redundancy applications.According to the source, in 2008 the NLD recorded 40 companies that filed for redundancy which affected 1,793 workers and 47 companies in 2007. From January 2010 to the beginning of this month (February) it has recorded 4 applications from companies seeking to be declared redundant.

In the last few years, particularly in textile sector, there have been several cases of retrenchment of workers.
This has also led to an increase in the underpayment of workers, employers engaging workers on casual basis and contract work.

Others have totally shut down. Under the Labour Act, applicants are required to apply to declare redundancy four months prior to the contemplated exercise.

The source explained that upon receipt of such applications, labour inspectors are sent out to investigate whether the exercise is a genuine one. They go to the field to ascertain if the applicants are facing real crisis or it is just a case of victimization.

In essence, the department has to be convinced. Packages for such redundancy exercises are often in accordance with the Collective Bargaining Agreement (CBA) existing and binding unions and employers.