Government has initiated steps to settle the salary arrears of workers of the recently revamped Volta Star Textiles Company Ltd.
This follows the inability of the company to pay its workers over the past 9 months – a development which has led to a sit-down strike.
Speaking on Joy Fm, Deputy Minister for Trade and Industry Kweku Ricketts-Hagan says government is committed to addressing the issue. According to him, government is trying to put together a payment plan to pay the workers.
“The company is struggling a bit and we are trying to get a transaction advisor to divest some of the shares and bring in a strategic investor” he added.
Mr. Ricketts-Hagan said government does not have a problem paying the salaries going forward but has a challenge with the arrears noting that the monies cannot be paid at a go.
The company is not on government payroll, the minister noted, “they pay themselves through their production but they are under-producing at the moment even though they have an off-taker.
“They are just not meeting their production level because of their aging machines, power disruptions, inefficiencies and few other things.”
The company is in arrears of about 3.6 million Ghana Cedis.
Source: myjoyonline