Super Paper Collapses
Management of SPPC, a subsidiary of the African Champion Industries (ACI) on September, 6, 2013 informed its employees, through the Industrial and Commercial Workers Union (ICU) Ghana, that the company, which manufactures toilet rolls, was facing some financial difficulties and that it could not continue with its operations.
In a bid to salvage the situation, management is said to have located a strategic investor to hold talks as part of the sale agreement.
The total amount would be deposited into the company's account after the final agreement.
The management has allegedly sold equipment for the manufacture of the papers to scrap dealers who have been busily cutting the machines into pieces.
SPPC Limited was incorporated on May 23, 1967 as a private limited liability company.
The company, which went public in December 1990, is widely regarded as an indigenous manufacturer since it obtains most of its raw materials locally.
SPPC Limited also exports some of its products to other West African countries. It is also involved in the recycling of waste papers.
The company has issued 32.44 million of its 100 million authorized shares to the public. SPPC has a stated capital of GH¢89.200.00 during 1990.
About 100 workers of the company, over the weekend, embarked on a peaceful demonstration against management demanding their Provident Fund (PF), salary arrears and redundancy negotiations.
According to them, they have not received their salaries for about three months.
They indicated that management had failed to pay the Social Security and National Insurance Trust (SSNIT) contributions of workers to the Pension Fund.
The irate workers, some years back, demonstrated against management over several issues.
They described the management as inefficient and corrupt.
The workers, in a nine-point resolution, called for the immediate removal of the Managing Director and the Chief Finance Officer for mismanaging the company.
They alleged that the managerial incompetence of the two had practically led to the collapse of the company.
George Narkotey, Chairman of the local union, said that 'we were here working and suddenly saw ICU executives from Accra who convened a meeting and briefed the workers that the company is folding up because of financial debts.'
According to him, the buyer allegedly asked the management to remove all workers from the premises before the final sale negotiation.
He noted that 'we don't have any problem if the company wants to fold up but we want our PF and arrears settled. Everything has to be documented to know when they are going to pay the serving award.'
The Local Union Chairman explained further that they would not allow the machinery to be carried by the scrap dealers and would resist any attempt to force them out of the premises if management fails to commence redundancy negotiation and pay PF.
Eleazer Nyaunu, Tema Regional Officer ICU, Ghana confirmed the decision by SPPC management to CITY & BUSINESS GUIDE, noting that several attempts to get them to attend a meeting to continue the redundancy negotiation had yielded no results.