The Textile, Garment and Leather Employees Union (TGLEU) has rejected the stimulus package being offered by the government to textile companies to help revive the industry. In line with the government’s promise in the 2017 budget, the Chief Director at the Trade and Industry Ministry, Dawarnoba Baeka, sent a circular to industry stakeholders on 3rd May 2017 asking them to submit a ‘request for expression of interest (EoI)’ to enable them to benefit from a bailout package.
The memo stated In line with its commitment to transform the industrial sector in Ghana, the government is introducing a stimulus package to support existing local industries to enhance their competitiveness and create jobs. In this regard, the Ministry first thank you for showing interest in this programme and secondly invites your company to submit an EoI by completing the attached diagnostic tool kit.
The General Secretary of the Ghana Federation of Labour who is also chairman of TGLEU Abraham Koomson was reported to have said that Joy news, a stimulus package for the textiles industry, will go to waste unless loopholes in the systems are thoroughly plugged.
Koomson prefers that the government stop pirating of local textiles as one method of reviving the textile industry. It will not yield any positive results, he fumed and evaluated that at the end of the day, because of smuggling and counterfeiting, the industry cannot compete. He feels that the government should first address the smuggling issue.
The textile industry has over the years been struggling which resulted in the loss of thousands of jobs. It employed over 25,000 workers in the 1970s but currently provides employment to only about 1500 people.
The influx of counterfeited versions of local designs from China has been blamed for the situation. In 2010, the government set up an anti-textile piracy task force to deal with traders of counterfeit textiles as one method to keep the industry afloat.
TGLEU has meanwhile written to the police announcing their plans to picket the premises of the Trade and Industry Ministry on 29th and 30th May to demand revival of the taskforce.
