"VALCO workers asking for dollar indexed salaries untenable"

" VALCO workers asking for dollar indexed salaries untenable \r\nThe Board and Management of the\u00a0 Volta Aluminum Compan y (VALCO) say the demand of its workers for their salaries to be indexed to the US dollar rate is untenable and must be disregarded.\r\n\r\n Last salary adjustment was on September 1, 2021 \r\n\r\nThe workers, led by their union executives, made this demand during the negotiation period insisting on having their salaries pegged to the US Dollar (USD) as of the last salary adjustment on September 1, 2021.\r\n\r\n Salaries of Ghanaian workers not indexed to dollar \r\n\r\nHowever, the Board and Management insisted that since the salary of the Ghanaian worker is not indexed in the USD, but rather the Ghanaian Cedi, the demands from the workers to have their salaries pegged to the USD is untenable and must be disregarded.\r\n\r\n<img class=\"i-amphtml-fill-content i-amphtml-replaced-content\" src=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-4.jpeg?resize=627%2C418&ssl=1\" sizes=\"(max-width: 627px) 100vw, 627px\" srcset=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-4.jpeg?w=627&ssl=1 627w, https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-4.jpeg?resize=300%2C200&ssl=1 300w\" alt=\"\" \/>\r\n\r\n 22% salary increment rejected \r\n\r\nThe workers also rejected a 22% increment in salary from Management of the Company, describing it as insufficient and demanded 55% increment instead.\r\n\r\n Stalemate \r\n\r\nAs a result, the management and the workers were unable to reach an agreement and the workers declared a deadlock on Friday, October 28, 2022.\r\n\r\nA press statement jointly signed by Dr. Henry Benya, and Mr. Dan Acheampong, Board Chairman, and Chief Executive Officer (CEO) of VALCO respectively set the records straight.\r\n\r\n Protection against cedi depreciation measures in place \r\n\r\nThe statement said that to protect workers against the effect of depreciation, management and the Industrial and Commercial Workers\u2019 Union (ICU) periodically met to agree on the quantum of salary increase in accordance with the existing Collective Bargaining Agreement.\r\n\r\n Out of its five potlines running \r\n\r\nThe company is producing below its installed capacity of 200,000 tons, with only two out of its five potlines running.\r\n\r\n 300,000 tons \r\n\r\nThe state-owned company is seeking a strategic investor to retrofit its plant and help increase production from the current 50,000 metric tons to 300,000 tons of refined aluminum per year.\r\n\r\n Deliberate and tactful decision to keep experienced hands \r\n\r\nThe board explained that the decision to allow some staff, whom they consider experienced and knowledgeable in the running of a highly technical field and a strategic plant as the VALCO smelter, a continuous stay is deliberate and tactful.\r\n\r\n<img class=\"i-amphtml-fill-content i-amphtml-replaced-content\" src=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-2.jpeg?resize=627%2C418&ssl=1\" sizes=\"(max-width: 627px) 100vw, 627px\" srcset=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-2.jpeg?w=627&ssl=1 627w, https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-2.jpeg?resize=300%2C200&ssl=1 300w\" alt=\"\" \/>\r\n\r\n Contract workers \r\n\r\n \u201cThey may have attained the retirement age but have not retired yet as they have been engaged legally on contractual basis, a situation that is not peculiar to VALCO but adopted in special situations by several private and public institutions especially where the services of such persons are needed in a specialized field. \r\n\r\n Positive turnaround \r\n\r\n \u201cTheir continuous stay in their respective positions has not only helped to impart knowledge but led to a positive turnaround of the Company,\u201d\u00a0 the statement said.\r\n\r\nThe Management on October 31 shut down the 127 cells of the smelter after workers went on a demonstration to back their demands for salary increment and the removal of the top management of the company.\r\n\r\n Restart will not cost $10m \r\n\r\nThe Board and Management also denied workers\u2019 claim that the restarting of its smelter after a shutdown following staff agitations will cost the Company $100,000 per pot in shutting down and $10 million in restarting the plant.\r\n\r\nRather, management said it is to prevent such occurrences that management opted for the controlled halt to its operations explaining that the Board of Directors being conscious of the strategic significance of the Smelter to the ongoing Integrated Aluminum Industry (IAI) Project, fully discussed at its last meeting, the likely negative consequences on the Project in particular, and Ghana\u2019s accelerated economic development in general.\r\n\r\nThe Board, therefore, charged Management to ensure that Ghana does not lose the Smelter in the event of any agitations that will occasion an unplanned shutdown.\r\n\r\nIt stated that following the unannounced takeover of the smelter on Monday October 31, 2022, by some workers, management took the decision in line with the Board\u2019s directive, to immediately work with the Ghana Grid Company (GRIDCo) to take down the line in an orderly fashion to save it to allow for a smooth restart as soon as possible.\r\n\r\n<img class=\"i-amphtml-fill-content i-amphtml-replaced-content\" src=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-1.jpeg?resize=627%2C418&ssl=1\" sizes=\"(max-width: 627px) 100vw, 627px\" srcset=\"https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-1.jpeg?w=627&ssl=1 627w, https:\/\/i0.wp.com\/newscenta.com\/wp-content\/uploads\/2022\/11\/Valco-1.jpeg?resize=300%2C200&ssl=1 300w\" alt=\"\" \/>\r\n\r\nIn respect of salary increment issues raised by the agitated staff, Management intimated that worker, after a series of negotiations led by their union executives, made an initial demand of a 62% but subsequently reduced it to 55%.\r\n\r\nIt added that in response, the Management of VALCO, offered to grant a 22% with the assurance of further increment in the future as VALCO continues its efforts in finding a strategic investor to retrofit the plant.\r\n\r\nVALCO Management appealed to the workers to consider the current state of the Aluminum Smelter which, for years, had been recording losses until 2021 when it chalked some modest gains recording Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) profits."

"VALCO workers asking for dollar indexed salaries untenable"

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