More Jobs To Be Lost Through High Rising Rate Of Dollar

The Ghana Employers' Association (GEA) has said that the rate at which the cedi is depreciating against the dollar could force businesses to dismiss some workers in the wake of current job layoffs.

The Chief Executive Officer (CEO) of Goldstreet Business Alex Frimpong told Goldstreet Business that the dollar rate is making it difficult for businesses to thrive.

'As we speak, the business environment is very critical. The question is how do businesses survive and grow in an environment where though inflation is still in a single digit currently at 9.9 percent in August from 9.6 percent in July, the dollar rate is nonetheless creating difficulties for businesses.'

'This and many others are the key issues bothering us and it's not in the interest of companies to dismiss workers, but such could happen when it gets off the limit. GEA members will look at the environment and situate the survival and otherwise of their business and see whether dismissals are a thing to consider,' he added.

Mr Frimpong suggested that to address this issue, the government must consider broader policy issues that could potentially compel businesses to dismiss workers.

He said some of the issues include the interest rate on bank loans, the influx of counterfeit goods in the Ghanaian market and many more.

Mr Frimpong said the association intends to engage the appropriate government agencies in order to know the way forward.

The association, however, admitted that current issues concerning layoffs go beyond the Employment and Labour Relations Ministry.

'We are preparing discussions with the Trade Ministry concerning the influx of counterfeit goods. We'll approach the Finance Ministry on the micro-economic management and the BoG which controls the banking environment. The conversation will be escalated beyond the Employment Ministry,' Mr Frimpong maintained.

Between July and August this year, an estimated 1800 people lost their jobs as a result of bank-takeovers by the BoG. In 2017, the collapse of UT and Capital Bank affected the employment of some 900 people who lost their jobs.