GHS 300m debt woes plague GIHOC distilleries company; workers protest at factory premises
In a show of frustration and discontent, workers at GIHOC Distilleries Company Limited have given the management a three-day ultimatum to address six pressing issues or face the consequences. The workers are demanding that Maxwell Kofi Jumah, the Managing Director, stay away from the company to allow the Interim Management Committee (IMC) to continue their work without interference. According to the workers, under Jumah’s leadership, the company’s fortunes have plummeted, and they hold him responsible for its current state.
One of the key concerns raised by the workers is the staggering debt of GH₵300 million that the company has accumulated. During a durbar held on May 4, 2023, Deputy Minister of Trade and Industry Michael Okyere Baafi disclosed this alarming figure, stating that Ghana Revenue Authority (GRA) and other suppliers are pressuring GIHOC and threatening to lock the company over unpaid obligations. This revelation has further fueled the workers’ anger and frustration.
The workers, clad in red armbands, staged a protest at the company premises to express their grievances, despite a heavy police presence. They expressed their satisfaction with the actions taken by the IMC and expressed hope for the committee’s progress, insisting that no external interference should disrupt their efforts.
Among the concerns highlighted by the workers is the management’s refusal to sign the Collective Bargaining Agreement (CBA) since 2020. This failure to honor the CBA has created unrest and uncertainty among the workers, leaving them without proper employment protection and benefits.
The delay in salary payments has also been a significant source of discontent. The workers demand immediate resolution to the recurring issue of delayed monthly salary payments, which have persisted since September 2022. Some employees claim they have not received their salary for the month of March 2023, further exacerbating their financial hardships.
Moreover, the workers accuse the management of failing to fulfill Provident Fund and Social Security and National Insurance Trust (SSNIT) contributions. Provident Fund contributions have been in arrears since January 2022, while SSNIT contributions have been unpaid for the past three months. Additionally, the workers allege that they have not received overtime payments since last year, despite being required to work on weekends.
The nonpayment of the 13th-month salary, as stipulated in their Collective Bargaining Agreement, is another area of contention for the workers. They argue that management has consistently failed to honor this provision for the years 2021 and 2022, further exacerbating their financial burdens. Additionally, end-of-year incentives have been denied to the workers since 2019, creating a sense of unfair treatment and diminishing morale.
Another concern raised by the workers is the nonpayment of the laundry allowance, as stated in Article 58 of their Collective Bargaining Agreement. Despite repeated reminders by union leaders, management has failed to fulfill this obligation, further straining the relationship between the workers and the company.
The return of Maxwell Kofi Jumah after a period of sick leave has added fuel to the workers’ anger. The workers accuse Jumah of running the company into the ground, leading to its current dire state. The presence of a significant number of police personnel at the GIHOC premises indicates the tense atmosphere surrounding the workers’ opposition to Jumah’s return.
In response to the workers’ grievances, Jumah issued a directive on the workers’ WhatsApp platform, stating that wearing red armbands was permitted outside the GIHOC premises but not within. The directive further escalated tensions, leading to a meeting between the union leaders and the Kaneshie Police Commander.
Amidst the escalating situation, the company’s Board of Directors issued a memo dissolving the Interim Management Committee (IMC) and reinstating Jumah as the substantive Managing Director. The decision has only intensified the workers’ frustration, as they believe the IMC was making progress in addressing the company’s challenges.
The workers have set a deadline of three working days for the management to address their concerns. Failure to do so could lead to further demonstrations and a potentially volatile situation at GIHOC Distilleries Company Limited. It is crucial for the management and stakeholders to swiftly address the workers’ grievances, restore trust, and find sustainable solutions to salvage the company from its current state of crisis.
