Vodafone explains higher expenses on expatriates

The management of Vodafone Ghana said the relatively huge expenses being made on 80 expatriates working with the company, was based on their respective contracts and in line with the value of their work in their individual home markets.

An answered questionnaire on a number of issues, particularly the ongoing redundancy of workers, management said: "All employees are paid according to the value of their jobs in their local (home) markets and the terms of their contract."

Management explained that the expenses being made on the expatriates were what they would have earned if they were working for Vodafone in their respective home countries; and the earnings of their Ghanaian counterparts were also based on the contracts signed in Ghana. An Accra-based newspaper, The Insight, on Monday reported that, in just one year, GH¢770,000 had been spent on the remuneration, hotel accommodation, rented 4x4 vehicles and other allowances for more than 80 expatriates working for Vodafone Ghana.

The paper said GH¢530,000 was spent on hotel bills at the $5,000-per-month plush Villagio Premavera apartments in Accra, GH¢240,000 on 45 rented from C&C Rentals at $150 per car per day. It also reported that 10 other expatriates of Vodafone were lodging at the African Regency Hotel, each occupying a Presidential or Executive Club suite at the cost of $600 a night.

The company is currently laying-off 1,892 workers, 950 of whom were being done compulsorily.

Those who are being laid-off would also lose their mobile phones and laptops, among other things, given to them by the company. Management said Vodafone intended to be competitive and fair in its salary policy, adding that "our plan is to introduce pay for performance as soon as we can."

It also denied that the redundancy is intended to cut down on the number of workers in order to increase the salaries of those, who would be retained saying "salary is always determined by the value of the job and not according to the number of people working in the organisation." Again the company denied that the downsize was to pave way for more expatriate workers to be brought in saying that expatriate would be brought in when necessary, just as Ghanaian employees would also be sent to Vodafone companies in other countries from time to time. Vodafone last year reported a GH¢264 million loss, and management said it was taking measures, including laying-off some workers compulsorily, in order to make the company productive and profitable in two years.