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01.07.2005 Business & Finance

Govt shocked at Juapong Textiles closure

Joy
Govt shocked at Juapong Textiles closure

Government says it is surprised at the decision by Vlisco, managers of Juapong Textiles to go ahead and shut down its operations. Vlisco made it clear it was going to pull out of Juapong by Friday citing high cost of production. True to its words, the company's contract with the over a thousand workers effectively ends today. But speaking to Joy News, Deputy Minister for Trade and Industry, Kofi Osei Ameyaw, said the ministry had proposed to the management of the company to hold on its plan till the end of the year. He explained that the move is to enable the workers stay on as government gets a strategic investor to take over the company. Mr. Osei Ameyaw said government is hoping to bring in an investor to retool the place and produce garments
Meanwhile the various labour unions have concluded negotiations with the management of the company. The workers are going home with a severance package of three months salary for each year served with effect from 1991.
The company will go ahead and conclude its liquidation process.

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