Salary reduction, job cuts as industrial load-shedding begins

Some workers will lose their jobs and others are likely to have their salaries reduced because of the worsening power crisis in the country.

This is the way some industries are planning to deal with the impact of the extension of the load-shedding to industrial areas.

Some companies say the drastic measures would be necessary to enable them contain the situation.

The Electricity Company of Ghana (ECG) on Tuesday announced a new load management timetable that included manufacturing enclaves for the first time since the crisis begun several months ago. This, the ECG said, will ensure longer hours of power for those in residential areas.

While the Association of Ghana Industries, who said some of their members are in residential areas, have welcomed the decision, the Ghana Chamber of Commerce and Industry has questioned government’s decision saying it is not a prudent decision.

Joy News’ Kwetey Nartey who visited the heavy industrial area in Tema, where many industries are located, said companies say they will cut down on workers’ salaries.

If the situation persists or worsens, they will be forced to send some workers home, they said.

Corporate Affairs Manager of Sentuo Steel Limited, Jojo Nutakor told Joy News the load-shedding will “compromise industrial” operations of the company, saying it will be a “no win” situation for them.

The company needs about 30 megawatts of power to process steel, he explained, adding they cannot acquire a plant that can power their operations.

At the Ferro Fabrik, the General Manager, Abraham Gaisie said they would have to reduce their operation capacity by 70% in the coming weeks.

“And the repercussion is that we have to lay off some of the workers so that we don’t incur more losses,” he lamented.

When the cost of operation is high, it would be passed on to consumers, Abraham Gaisey said.

The company uses about 15 megawatts of power in its operations, and if they are going to depend on plants which are far more expensive to run, Abraham Gaisie said they will “critically examine” the impact, which will determine the number of workers they will retrench.

Although some companies said they would not be affected directly by the new load-shedding decision, they indicated that since they depend on the larger companies which would be affected, it will also slow down their businesses.

Chief Executive of pharmaceutical firm, KINAPHARMA, Kofi Nsiah Poku, told Joy News the company spends Ghc10,000 on diesel every day to power its plant.

Since it is costing them a lot of money to operate, the company’s profitability would be affected, he said. This might also affect the taxes paid to government, he added.

He said, in business there are good times and bad times, though the load management is a bad time for them, the company will “maintain low-level operations until the situation changes”.

Meanwhile with the inflow of natural gas from Nigeria and Ghana Gas at Atuabo, VRA Chief Executive Kirk Coffie said more combustion turbines would be turned on to boost generation.


SOURCE: myjoy