Public Agenda (Accra)
Selorm Amevor
13 October 2008
Accra — Professor Cletus Dordunoo, the Chief Executive Officer (CEO) of ClayDord Consult a Financial and Economic consulting firm has indicated that among other factors industrial strikes by both public and private sector workers have the propensity to affect the country's quest to become a middle-income country.
According to him available figures indicates that while there are rarely reported cases of industrial strikes among Ghana's trading partners it is seen as a normal occurrence in the country.
Prof. Dordunoo revealed that between a four year period (2003-2006) there were 191 reported cases of industrial strikes involving about 54 , 431 workers and led to a productivity loss of about 389,715; whereas the nation's trading partners recorded four industrial strikes with 1,112 workers and a productivity loss of 7,784 within the same four- year period.
He said the huge man-hour lost due to strikes was an indication that the state lost huge revenues equaling the Gross Domestic Product (GDP) of the country.
The CEO therefore appealed to industrialist to promote labour-management relations to reduce the frequency of industrial strikes.
Prof. Dordunoo disclosed the research findings in Accra on the state of wood processing, textiles, garments and food processing sector in Ghana under the auspices of the Association of Ghana Industries (AGI). He called on captains of industry to continue to analyze the competitiveness indicators of the Ghanaian industrial sector vis-à-vis their trading partners.
He said that currently local firms are facing major constraints that need urgent attention. Some of the constraints he said include; the high cost and inadequacy of capital, low utilization of installed capacity , long period for business registration and commencement of business , high domestic resource cost , low effective protection rates, instability in supply and low quality of raw materials , irregular supply of water , electricity and other energy sources.
Others include low total factor productivity rates, obsolete technology and production management and poor marketing support, shortage of skilled labour for modern technology, tariffs on raw materials and machinery, unfair application of standards to Ghanaian manufacturers, dumping and dated customs valuation list and preference for foreign products.
Prof. Dordunoo said for the nation to become a middle-income country it is necessary for government to reduce cost and increase access to credit, scale up utilization of installed capacity, shorten the period of business registration and commencement of business and reduce the components of domestic resource cost.
The CEO also called for the need to give special grants and subsidy to raise effective protection rates, upgrade technology and enhance production management; adopt strategic policies aimed at increasing marketing capabilities, develop and sustain policies for regular supply of raw materials, water and other social amenities.
He further called for the review of vocational and technical education to increase supply of skilled labour, speed up the implementation of programmes that will reduce difficulties in land acquisition and introduce fast track courts to handle land cases.
The Chairman for the occasion, Mr. Kwasi Sam-Woode indicated that it was the desire of AGI to embark on such research occasionally but due to financial constraints, they are unable to finance them.
He therefore called on members of the industry to pay their dues so that they can use a portion to facilitate research to help them in decision-making.
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