Tati Ramarao, General Manager of Diamond Cement
The management of Diamond Cement at Aflao in the Volta Region has threatened to sack 50 percent of its staff as result of what it terms unfair trade practices by some cement importers.
According to the company, unfair competition from foreign cement importers, particularly, Dangote Cement, was stifling its operations in the country.
The company, which has the capacity to produce 1.8 million metric tons of cement annually, is currently producing about 800,000 metric tons a year.
Layoffs Necessary Evil
General Manager of the company, Tati Ramarao, who disclosed this during a media briefing in Aflao, noted that the company is currently operating at only 43 percent capacity.
Owing to the development, the company is facing difficulties in paying the workers, he added.
“Just last month, I was compelled to sack 10 people from the marketing department in Tema because I couldn’t sustain the company’s operations, he lamented.
In as much as the layoff is bad and unfortunate, we have to take such drastic measures to keep the company afloat.
“If by the end of November we don’t hear anything good from the government, we will sack 50 percent of our direct and indirect staff. We are really suffering and all the time the problems keep increasing and if we cannot produce at 100 percent, we cannot keep all our workers,” he added.
Complains
Local cement manufacturers in the country have in recent times complained about the influx of cement on the Ghanaian market.
A recent decision by the Trade Ministry to allow Korean cement company, Fujian, to export 500 thousand tonnes of cement to Ghana was also met with stiff opposition by the local manufacturers.
Dangote Cement, which was initially bagging cement in Ghana, now imports cement from Nigeria to Ghana.
Government indifferent
Despite all these concerns, the government seems to have ignored the grievances of the local manufacturers.
The Trade Ministry has since defended its decision, citing the insufficient supply to meet demand.
Some consumer interest groups and the importers association have however insisted that the country allows the importation of foreign cement to control pricing and avoid monopoly in the sector.
Tati Ramarao added: “We have written so many letters to government through the Ministry of Trade but nothing is happening. They only make promises but we are not seeing anything and the competition is becoming worse all the time.”
Chiefs Intervene
Meanwhile, some chiefs in the Ketu South Municipality have called on government to intervene in the matter.
According to them, the company has provided jobs to the people of the area since its inception in 2001.
The Divisional Chief of Wudoaba, Togbe Tortsofia VII noted that hitherto armed robbery and crime were rampant in the area and should Diamond Cement lay off the staff, criminal activities in the area would increase.
The Paramount Chief of Some Traditional Area, Togbe Adamah III, said life would become extremely difficult for the affected workers and their families due to the current harsh economic conditions and urged government to address the problems.
From Gibril Abdul Razak and Fred Duodu, Aflao (freduoo@gmail.com)