President John Mahama has advised workers of Volta Star Textiles to reconsider their demand for the GHc 6.1 million meant for the recapitalization of the factory to be used to pay their eleven months accumulated salaries.<\/p>\n
The Volta star textiles limited, a successor to Juapong textiles limited established in 1968, is to primarily produce and supply grey baft to feed other Ghanaian industries.<\/p>\n
Since its establishment, \u00a0frequent changes in management have hampered its growth.<\/p>\n
The company folded up in 2005 following a file for liquidation by the Dutch giant, Briscoe, which was then operating it.<\/p>\n
However, the government in May 2007 under the NPP reactivated the company and injected a seed capital of GHc3 million in 2008.<\/p>\n
The company employs over 1000 workers directly and indirectly provides jobs for other businesses in the textile industries.<\/p>\n
Eight years on, the company again faces imminent collapse as management grapples with poor working conditions and inability to generate enough profit for its operations.<\/p>\n
Among the many problems is the company\u2019s inability to pay a seven month salary arrears for its workers and outstanding electricity bills.<\/p>\n
Currently operations at the factory have been suspended as workers have laid down tools.<\/p>\n
But addressing the chiefs and people of Todome-kpalime during an inspection tour on the eastern corridor roads, President Mahama disclosed that a GHc6.1m seed capital has again been injected and workers are demanding the money be used for payment of their outstanding salaries.<\/p>\n
\u201cI personally authorized the Export Development and Agriculture Investment Fund (edaif) to give the factory GH 6.1Million to recapitalize it to be able to start working again. Now the discussion is that, some of the workers say the money should be used to pay their full arrears. But if you use the money to pay their full arrears, there would be no money to restart the factory. and so the board and management say let\u2019s give you between two or three months of your arrears and let\u2019s put the\u00a0 rest of the money into production so that we ourselves can start paying you your current monthly pay while we clear the arrears. You know the thing is we must be reasonable; we must open the factory and work so that you are guaranteed your future pay.\u201d<\/p>\n
He advised some of the workers who took advantage of the durbar to meet the President to register their demands and the\u00a0President also asked the workers to be reasonable.<\/p>\n
–<\/p>\n
By: King Norbert Akpablie\/citifmonline.com<\/p>\n","protected":false},"excerpt":{"rendered":"
President John Mahama has advised workers of Volta Star Textiles to reconsider their demand for the GHc 6.1 million meant for the recapitalization of the factory to be used to pay their eleven months accumulated salaries. The Volta star textiles limited, a successor to Juapong textiles limited established in 1968, is to primarily produce and […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,10,11],"tags":[],"yoast_head":"\n