ICU Calls For Review Of Tariffs

The Industrial and Commercial Workers Union (ICU) has urged the government and the Public Utilities Regulatory Commission (PURC) to hold a meeting with all stakeholders to discuss a downward review of utility tariffs.

It served notice that if by the end of this month no moves had been made in that direction, “we shall advise ourselves”, adding that its remonstration might include massive demonstrations all over the country.

At an emergency meeting in Accra, at which the union stated its position on the new tariffs recently announced by the PURC, the acting Deputy General Secretary of the ICU, Mr Solomon Kortei, said although the PURC announced an increase of 89 per cent for electricity and 36 per cent for water, the real increases ranged from 198 to 235 per cent in the manufacturing sector.

He said the cumulative effect of those increases was that the manufacturing sectors of the economy, namely, textiles and garments, steel and metal, food and beverages, just to mention a few, would undoubtedly encounter operational difficulties.

“And when that happens, the poor Ghanaian worker will suffer most. Some workers will most likely lose their jobs, as against the quest for the creation of more jobs promised by the current government,” he added.

Mr Kortei said already, the management of many manufacturing industries was considering how to handle the situation, with some contemplating passing on the increases to consumers of their products.

That, he said, would definitely lead to increased inflation and thereby make life unbearable for Ghanaians.

Others too, he added, had realised that passing on the increases to consumers would make the cost of the products so high that the consumer would not be able to afford them, a situation which would further worsen the competitive disadvantage of local manufacturing companies who were already grappling with very cheap products from China.

Mr Kortei said investigations by the ICU had revealed that in the steel industry alone, about 2,500 workers would be affected, while another 3,000 would be indirectly struck because they would be out of employment.

“The 3,000 are mainly suppliers of steel scrap to the steel companies, notably Ferro Fabric Ltd, Tema Steel Works, Sethi Brothers, among others. This means that in the steel and metal industries alone, over 5,500 workers are going to lose their jobs, not to mention their dependants,” he added.

According to him, the recently revived Volta Star Textiles Ltd shut down three weeks ago because the company could not settle an outstanding electricity bill of GH¢490,000, adding that the financial situation of the company would worsen if the current increases in tariffs remained unchanged.

Aluworks, a giant local aluminium company, he added, was on the verge of collapse as a result of the new tariffs.

He said the high tariffs would also have a serious impact on domestic consumers, adding that already users of prepaid meters were feeling the harsh effects of the increase.

Mr Kortei noted that the reason given by the Electricity Company of Ghana (ECG) and the Ghana Water Company (GWCL), to improve efficiency was not tenable and that they rather had to address the inefficiencies in their operations such as waste, illegal connections and huge outstanding bills.

“We have followed with keen interest the PURC’s arguments on the basis for the recent increases. The ICU is not against the increase in tariffs per se but rather we are much concerned about the levels of the increases, which are not commensurate with salary levels in the country,” he said.

“For the better Ghana agenda to be a reality and for Ghanaians to feel it in their lives, we are calling on the PURC and the government to engage all stakeholders in fruitful discussions to bring down the increases to levels that will be affordable to industries and ordinary Ghanaians,” he added.

The acting National Chairman of the ICU, Mr William Adu-Asare, said demonstrations did not mean unruly behaviour and advised members to operate within the law if the union decided to go on demonstrations.

He said the real problems the utility companies faced, which had led to increases in tariffs, was wastage, contending that if that problem was addressed, the companies would see no need to increase tariffs.