Over 2000 employees to lose jobs

– as GPHA refuses to renew licence for 4 stevedoring companies
Accra, May 3, 2010 - The Ghana Ports and Habour Authority (GPHA) has allegedly refused to renew the operating licence of four (4) stevedoring companies at the Tema and Takoradi Ports and Harbour without stating any specific reasons. The news has left many officials and workers of the affected companies very agitated.

Over a total of 2000 employees stand to lose their jobs. The non renewal of licence will deny spouses and children (over 4400) of redundant staff health care. The economy will suffer millions of Cedis. The aggrieved stevedoring companies made up of Carl Tiedemann Stevedoring (GH) Ltd (CTS), Dashwood, Odart and Fountain View Stevedoring Companies have appealed to the GPHA for immediate renewal of their licences in order to prevent these and many more unpleasant implications especially at a crucial time like this when efforts from all sectors are being harmonized to curb the issue of unemployment in the country. According to the officials of the affected companies, they were given very short notices to meet new requirements for the renewal. They said they have in the past always adhered to the hitherto simple and well-understood processes and requirements for the renewal of their annual operating licences. Despite the late communication of the new process which requested them to provide among other things a detailed business plan within five working days, they managed to meet the deadline provided by the GPHA only to receive a letter with the sour news. The companies received with shock letters from GPHA informing them that their company licences have been extinguished without stating any reason for the extinguishment.

Officials of the affected stevedoring companies further explained that because of huge capital outlay, their business requires stable and predictable environment to encourage entrepreneurs to invest into it. The stevedore business is highly capital intensive and a long-term investment, requiring not less than $5m to invest into equipment, vehicles, office set-up, manpower etc. to start operations. Issues such as delays in renewal of licences do not therefore auger well for their operation.

The companies and workers have vehemently protested against the decision of GPHA stating that the GPHA did not communicate any intention of changing the renewal requirements and that most of them have good past records over the years for being good business entities or citizens which gives the GPHA no cause to complain about their performance.

Stevedoring is a capital intensive business and the companies claim to have already invested so much in equipment and human capital. They appeal to government and the GPHA to address the situation to restore a healthy climate for business.

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