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General News of Wednesday, 1 September 1999

Source: GNA

Tema Steel Company closed down.

Tema, Aug. 31, GNA - The Tema Steel Company was closed down on Monday following a misunderstanding between workers and management over the payment of some allowances. A letter signed by Mr M. Prasad, Managing Director of the company, said the closure was to ensure security and safety of the plant and personnel.

It said the management and the local workers union on August 18, this year concluded a new Collective Bargaining Agreement (CBA) under which each worker was to be paid 210,000 cedis at the end of August.

They also agreed that management should submit a draft of the agreement to the Union by August 20, this year for their consideration before signing on August 26. It said management submitted the draft to the union on August 20 but the union delayed in submitting its comments but raised an issue, which was not discussed when the agreement was concluded.

The workers were alleged to have locked up senior staff on the company's premises after 17:00 hours on August 26 but released them around 23:00 hours following the intervention of the national executives of the Industrial and Commercial Workers Union (ICU).

Mr Cornellius Gbedjou, Vice Chairman of the local union explained that the Union refused to sign the CBA because management refused to attach job classification to it as agreed.

He said the workers at a meeting decided that management should give them part payment of their annual leave and bonus, which is the workers own contribution of 10 per cent from their monthly wages.

Mr Gbedjou said last Friday, about 90 per cent of the workers were paid and they worked throughout the weekend. They were, therefore, surprised to report to work on Monday to find the company closed. He denied that the workers locked up management.