Business News of Tuesday, 6 January 2015
More workers of MODEC Ghana, operators of FPSO Kwame Nkrumah on the Jubilee oil field, would be laid off in 2015, following a notice of a retrenchment exercise by the company.
Management of the company had already terminated the appointment of 22 workers at its catering department explaining that, “there was the need to outsource the department to a service provider.”
A letter issued to all employees of the company and signed by the human resource manager, Alex Obu-Simpson, stated that “management is currently working on their severance benefit which will be paid by 15th January, 2015.”
The company also said in the statement that “it is worth mentioning that there shall be further redundancies in 2015. All relevant stakeholders will be involved when the process commences.”
They explained that their decision is in connection with the ongoing restructuring exercise aimed at improving their operations.
Meanwhile, some local workers of MODEC have threatened to resist any attempt by MODEC to lay off more staff.
Earlier in 2014, some Ghanaian MODEC workers embarked on an industrial action to protest pay disparities; a situation the company said “affected productivity, company reputation, relationship with the client and stakeholders, as well as cost to the company.”
The management of MODEC later terminated the appointment of 27 of the Ghanaian workers who embarked on the strike action, a move that generated massive controversy, which got the Trade Union Congress (TUC) backing the workers.