Workers Union and company sign memorandum of understanding

Akosombo, (Eastern Region) 24 June '99

Ghana's banana, produced by the Volta River Estates Limited (VREL) in Akosombo is the only one in Africa with fair trade certification, a feat achieved through the collaborative efforts of the company and the General Agricultural Workers Union (GAWU) of the TUC.

VREL received the certification in November 1996 to become a fair trade banana producer.

Under the certification, the Company is expected to adhere to the IBR Protocol, which stresses the need for fair social partnership and environmentally friendly practices.

This is contained in a memorandum of understanding signed between the two bodies in Akosombo at the end of a seminar organised to mark the 40th anniversary of GAWU.

Mr Jorge Calvo, Managing Director, Mr Alex Yeboah Afari, Personnel Manager, both of VREL, and Mr Samuel Kangah, General Secretary and Mr Kingsley Ofei-Ansah, Deputy General Secretary, of GAWU signed the memorandum.

"GAWU and GREL consider this important event as the right occasion to reiterate their mutual support for each other as social partners and build on their relationship into the 21st century", the memorandum said.

The memorandum stressed that GAWU recognised the important role VREL is playing in providing employment and VREL on its part recognises the importance of workers as a vital resource in the production process.

The mutual recognition constitutes a basis for the concept and practice of social partnership", it added.

The memorandum said the two bodies have taken their social partnership further, by struggling to promote high social and environmental standards that culminated in making VREL's banana the only one on the African continent with fair trade certification.

GAWU and GREL reiterated the spirit of understanding underlying the concept and practice of social partnership and renewed their shared commitment in line with International Labour Code, in and around the plantation.

They are also committed to raising environmental standards, promoting a new work ethic consistent with productivity and the well-being of workers, and strengthening trade unions for enhanced social partnership.

The two bodies would continue to promote social dialogue within the enterprise and in the nation as a whole.

In a welcoming address, Mr Calvo said VREL "wants this partnership to extend for years to come, and to be more productive and fruitful".

"VREL has always been supportive of GAWU, not only on the local and national levels, but also on the international scene, where GAWU has gained international recognition and respect because of fair trade".

The VREL Managing Director acknowledged that the company "is passing through difficult (financial) times, but we know that with the support of GAWU we will successfully come out of this crisis".