Massive redundancy claims hang over DICs

The Maritime and Dockworkers Union of the TUC is demanding a redundancy package for the over 540 workers who will be forced out of work when the five Destination Inspection Companies (DICs) in the country go out of business by the end of this month.

The union is also praying the Ministry of Employment and Labour Relations to find alternative work for the affected workers, who it argued “are too skilled to be allowed to sit at home”.

Government has indicated it will not renew contracts of the five DICs -- namely Gateway Services Limited, Ghana Link Network Services, BIVAC International, Webb Fontaine and Inspection Control Services, as it plans to push that function into the hands of the Customs Division of the Ghana Revenue Authority.

The union body of the affected workers is therefore bargaining for a package that will require the DICs to pay each unionised worker a redundancy rate of three months’ salary multiplied by the number of service years, which is normally five years; a five-year long service award and bonus payment for 2015.

The DICs usually have a five-year long contract, which may or may not be renewed by government.

In a letter to the Employment Minister to impress upon the DICs to ensure smooth negotiations, the union is further seeking fringe benefits in the form of convering staff’s outstanding leave into cash; a handshake of three months’ salary and a certificate of service.

General Secretary of the union Daniel Owusu-Koranteng, who disclosed this to the B&FT, said the package will compensate for the job-loss as the union negotiates with the Employment Ministry for alternative work opportunities for displaced workers.

“This package is the average in the maritime industry, and it is a good terminal package for our workers. We are also negotiating to integrate the workers into the new system, as we can’t allow such skilled hands to go home,” he said.

The five destination inspection companies were contracted by the Ministry of Trade and Industry in 2000 to enhance Customs functions as a stop-gap measure for improved trade facilitation.

Tied to their contract was the obligation to transfer their expertise and knowledge to officials of Customs through a quarterly capacity building workshop coupled with in-house training, after which the DICs will be scrapped for Customs to take over.

Government earlier this year hinted that Customs would soon assume responsibility over destination inspection in order to simplify trade facilitation processes for improved revenue generation, and that has led to the current situation.

DICs express disappointment

A source from one of the five destination companies has however disclosed to the B&FT that they are disappointed with the manner in which the contract abrogation is being carried out.

According to the source, they had hoped for a gradual phase-out and transitional programme to ensure a seamless process.

“We knew we had a contract and that at a point in time we would hand over to Customs; but the way things are going, we are not being treated fairly.

‘We had hoped for a gradual process that would ensure a smooth transition as we provided the training to Customs, aside from investing in the paperless clearance process.

“It therefore unfortunate that government is taking us off the scene to put the transitional process into the hands of another company,” the source indicated.

The source further warned of dire consequences for international trade and related economic impacts should the proposed transition fail to go through smoothly.

“The country’s ports risk being thrown into a chaotic situation if the transition does not go through smoothly.

“For example, when the process failed in Nigeria importers were able to clear their goods with whatever documents they had; and government had to lose so much revenue,” the source cautioned.