Cotton processing firm on edge of collapse

13 Mar '10

2 min read

The Ghana Cotton Company Limited (GCCL), which is amongst leading raw material supplier to Ghana's textile industry, is approaching closure and around 400 workers of the company are feared to lose their jobs in near future.

Also, around 367 service providers mainly of fertilizers, cotton seeds and other input suppliers may have to share the fate of those workers, as henceforth they too will not be able to supply their products to GCCL, which in turn disburses it to the farmers at subsidized rates.

GCCL still owes to its workers their three months outstanding salaries and other entitlements. Over and above this, almost 80 percent of company's tractors and other vehicles have completely worn out and the rest which are in working condition are also lying unused as according to the workers, the management is not having enough money for refuelling them.

The workers blamed the management of wasting ¢147 million (old cedis) on the renovation of a company official's dwelling, and that to when the company was passing through its worst financial crisis.

Also the management was targeted for discriminatory pay, by the aggrieved workers who claimed that few members from the management were being paid in excess of GH¢18,000, while the labourers and drivers were paid in the range of GH¢100 and GH¢150.

It was also brought to light that company's power supply was discontinued by the Volta River Authority (VRA), as the company failed to clear it's dues of about a GH¢50,000. Not only this GCCL's Northern Central Division is also indebted to the fuel suppliers for a payment of GH¢90,000.

The workers are annoyed over poor deployment of funds amounting to GH¢260,000 which were released in 2008 by the New Patriotic Party (NPP), the ex-ruling government, to aid company's operations and for enhancing cotton productivity.

Fibre2fashion News Desk - India

More Textiles News - Ghana...