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Laid-off cotton workers ask severance compensation
22 Jul '11
2 min read
General Agriculture Workers Union (GAWU) of Ghana has said it would put severe pressure on the Government, if it fails to fulfil its commitment of paying severance compensation to the 255 workers who have been laid off by the Ghana Cotton Company, by August 1.
These laid-off workers are angry with the Government as it has failed to keep its word of paying severance allowance to them by March 15, 2011, as mutually agreed.
GAWU General Secretary, Kingsley Ofei-Nkansah said that the workers are demanding that the Government should initiate steps to pay the outstanding sums to them with allowances, computed on the basis of existing Treasury bill rate, as the value of the settlement computed at the time when the agreement was struck no longer remains the same.
He further stated that if the Government does not firmly assure fulfilment of this demand by July 31, they would be left with no other choice but to find their own way.
Mr. Ofei-Nkansah said that GAWU had signed a deal with the Government, according to which the retrenched workers should have been paid severance allowance by March 15, 2011, so as to enable implementation of new plans for revival of the cotton industry.
The GAWU official further said that after expiry of the March 15 deadline, a number of reminder notes were forwarded to the Government asking it to fulfil its promise of paying out retrenchment allowance to laid-off workers, but the Government has not reacted so far.
The Ghana Cotton Company was instituted in 1960s under the name of Cotton Development Board. The annual production of the company has remained unstable since beginning, ranging between 10,000 to 40,000 metric tons. However, it was recently declared non-viable and 255 workers were laid-off.
These laid-off workers are angry with the Government as it has failed to keep its word of paying severance allowance to them by March 15, 2011, as mutually agreed.
GAWU General Secretary, Kingsley Ofei-Nkansah said that the workers are demanding that the Government should initiate steps to pay the outstanding sums to them with allowances, computed on the basis of existing Treasury bill rate, as the value of the settlement computed at the time when the agreement was struck no longer remains the same.
He further stated that if the Government does not firmly assure fulfilment of this demand by July 31, they would be left with no other choice but to find their own way.
Mr. Ofei-Nkansah said that GAWU had signed a deal with the Government, according to which the retrenched workers should have been paid severance allowance by March 15, 2011, so as to enable implementation of new plans for revival of the cotton industry.
The GAWU official further said that after expiry of the March 15 deadline, a number of reminder notes were forwarded to the Government asking it to fulfil its promise of paying out retrenchment allowance to laid-off workers, but the Government has not reacted so far.
The Ghana Cotton Company was instituted in 1960s under the name of Cotton Development Board. The annual production of the company has remained unstable since beginning, ranging between 10,000 to 40,000 metric tons. However, it was recently declared non-viable and 255 workers were laid-off.
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