The Ghana Federation of Labour (GFL) has pledged support for the National Democratic Congress (NDC) over its policies for economic transformation.
Former President and flagbearer of the opposition National Democratic Congress (NDC), John Dramani Mahama, has been trumpeting a 24-hour economy that he believes will breathe fresh life into the ailing Ghanaian economy.
This decision has received varied opinions from individuals, politicians, civil society organizations, and the business community.
However, the Ghana Federation of Labour believes the 24-hour Economy Policy if implemented will help revive the economy and called on the NDC to focus on reindustrialization and job creation.
The GFL opined that the Ghanaian economy has virtually ground to a halt causing massive job losses as a result of systemic failures of economic policies and the extinction of trade unions is imminent if the current trend of reckless management of the fragile economy is not reversed.
In a statement from the GFL signed by Secretary-General Abraham Koomson cited by Ahotoronline.com, the Federation said the manufacturing Industries across all sectors of the economy (formal and informal including business in byproducts) employed not less than 60% of the labour force in the country.
They also called for the reindustrialization of agro-industries as apart from food production, the Agro-industry served as a source of raw materials for the manufacturing industry.
The GFL used the Ghana Industrial Holding Corporation (GIHOC) as an example saying GIHOC had 17 subsidiary companies which greatly depended on local agricultural inputs.
These companies were: Vegetable Oil Mill, Sugar Products Division Komenda, Sugar Products Division Asutuare, Bolgatanga Meat Factory, GIHOC Farms, Meat Products Tema, Paper Conversion Company, GIHOC Distillery, GIHOC Footwear, Jute Factory, Pharmaceutical Division, Aboso Glass Factory, Paints Division, Saltpond Ceramics, Tema Steel, Boatyards, Akasanoma Electronics.
The other collapsed or distressed companies are Kade Match Factory, Bonsa Tyre, Wenchi Tomato Factory, Sanyo Electronics, Food Complex/GAFCO, Pwalugu Tomato Factory, Vehicle Assembly Plant, Leather Products, Akosombo Textiles Ltd, Tema Textile Ltd, Ghana Textile Manufacturing Company Ltd, Millet Textile, Freedom Textile Ltd, Spintex, Printex, Aquafresh Ltd, GTP, Juapong Textile, Takoradi Flour Mill, Blanket Factory, Nitra Garment, Zakour Textile and a host of garment companies including Glamour Garments, Loyalty, Alu Works, Nestle, Lever Bros(Unilever), Crocodile Matchets, Ghana Mats, Ghanal and Pioneer Aluminum.
Ghana Federation of Labour (GFL) says the revival of these industries cannot happen overnight looking at the state of the deteriorated economy.
However, with the commitment of the NDC as announced by His Excellency the former President John Dramani Mahama, appropriate measures/interventions as suggested by the Ghana Federation of Labour (GFL) if considered, will hasten the revival of industries across the country to create jobs to enhance the growth of the economy.
In their observations, the GFL said governments worldwide give a premium to the manufacturing Industry because that is the growth cycle for the development agenda and a manufacturing factory can only grow and produce the expected added value if only the investors have the assurance of investment protection, growth and uninterrupted continuity.
Again, the federation is of the view that investments in land, plant, machinery and related equipment for the comprehensive package of the manufacturing business require that the investment needs not less than an assured continuous operational period of 15 to 20 years to recoup.
They called on the government to promote investment assurance in the industry, which will as well make the industry competitive and an uninterrupted relief period which carries the assurance that every investor desires and the imposition of unhealthy and treacherous indirect taxes creates an unfavourable investment climate.
On the Beverages and Water sector, GFL says the imposition of outrageous indirect taxes like the excises and levies result in high prices of goods and services because such excises/levies inflate the vatable base of goods, even those consumed by the school going pre-teen and the teen ages are not proofs of GDP growth but a destruction to the parental financial strength.
They blame the government for the current economic woes of the country as the recent expanded inclusion of certain products in the excise duty regime by the NPP is noticed to be killing productivity, resulting in the laying off of workers, and closing down of factories because of low sales in the face of higher production cost amongst others.
In an engagement between The LAB a policy think-tank of the NDC and leadership of the Ghana Federation of Labour (GFL) to seek GFL’s views and inputs into the next NDC government’s proposed policies to transform the country, the Federation attributed the causes of the collapse of the industries to mismanagement, outrageous and nuisance taxes, excise/levies and high utility tariffs.
In the private enterprises, the GFL identified the causes of the collapse of the industries as outrageous and nuisance taxes, excise/levies and high utility tariffs.
The Ghana Federation of Labour (GFL) suggested that the approach to the solution is an engagement with Industry stakeholders (government, private investors, AGI) to discuss and adopt tax and tariff policies that will benefit the state and businesses as well.
The GFL has proposals/inputs for the NDC manifesto.
In the Textiles sector: They proposed uninterrupted Zero VAT for locally manufactured textile industries.
Beverages/Water: Reversal of the recently expanded inclusion of certain products in the excise duty regime to sustain operations of the local manufacturing industries.
In conclusion, the Ghana Federation of Labour (GFL) is of the view that a boost to the manufacturing industry will no doubt result in the following:
- A direct growth in the export economy will reduce the demand for foreign currency, and stronger the cedi forex relationship.
- Increase in employment.
- A very attractive investment environment for foreign direct investment.
- The NDC should and can expect all the needed support from GFL and the manufacturing industry.
Story by: Emmanuel Romeo Tetteh(#RomeoWrites) / Ahotoronline.com
