Over 24,000 jobs to be lost if benchmark policy is not scrapped – FAWU
The Food and Allied Workers Union of Ghana Federation of labour has disclosed that over 24,000 jobs will be lost if the benchmark value policy is not scrapped.
The General Secretary of FAWU, Mr. Kenneth Koomson, has indicated that currently, there are four main oil palm plantations with over 24,000 workers whose jobs are on the verge of collapsing if the benchmark value policy is not reversed.
He added that some of the workers who might be affected, may tend to find solace in various social vices.
He mentioned this at a press briefing organised by FAWU in collaboration with the General Agricultural Workers Union (GAWU), of the Ghana Trade Union Congress (TUC).
He indicated that before the introduction of the benchmark value policy in 2019, the total cost of locally produced 25 liters of vegetable oil stood at $24.53 whiles the total cost of imported vegetable oil stood at $25.92.
“But after the introduction of the value policy, the total cost of locally produced 25 liters of vegetable oil dropped to $23.89 with a difference of $0.64, whiles the total cost of imported vegetable oil dropped to $22.18, also with a difference of $3.74 making the imported very cheap”.
Mr. Koomson elaborated that the the figures indicates that the importers of finished vegetable oil made a saving of $3.7 on every 25 liters as against $0.64 of the local manufacturer, which in absolute terms, is almost GH¢22.00, a difference accounted for by the benchmark regime.
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He again added that the situation had resulted in the influx of cheap imported product onto the Ghanaian market making it extremely difficult for the local manufacturers to sell.
“We all know that the interest of employers are mostly incompatible with that of employees, but when it comes to management of a business, the focus of the employer is to at least break even to be able to sustain capital”, he said.
“Now the only option will be to shut down the costly labour intensive operations that is what we are afraid may happen very soon if nothing is done about the suspension”, he added.
He furthered that more jobs will be lost if the local manufacturer closes down than an importing enterprise.
Mr. Koomson said as a trade union, FAWU and GAWU considered it as their fundamental obligation to promote and protect the social and economic interest and well being of workers.
“We therefore appeal to government that based on the negative impact of the benchmark policy in jobs and survival of the industry, the government should as a matter of urgency, implement the removal of the benchmark policy”, he said.
He said on January 13, 2022, the Ghana Revenue Authority, issued a communique on the suspension on the removal of the benchmark value of imports on some selected items.
This directive, he said, came as a shock after almost two years of stakeholder consultation on the matter, which eventually resulted in the reversal of the policy as announced by the Finance Minister in the 2022 budget.
