By Laudia Sawer
Tema, Sept. 2, GNA – The Tex Style Ghana Limited, producers of GTP, Woodin, and Vlisco clothes, has, from September 1, begun to cut down on its production capacity due to the high cost of inputs.
Reverend Charles Quainoo, Chairman, Tex Style Professional, and Management Staff Union, told the Ghana News Agency that production workers of the company had begun taking their leave, following an agreement with Management.
Some have taken a two-week general leave as a result of the cut-down, he said.
Rev Quainoo, however, said some skeletal production staff were at post, adding that sales, accounting, and administrative departments were working.
He said the divisional workers’ Unions agreed to the leave arrangement after a management meeting and informed them that there was a serious shortage of Residual Fuel Oil (RFO) in the country, which has led the company to resort to using diesel to power their boilers, thus increasing the Company’s energy costs by four times.
He said although they were in the lean season, sales had also dropped drastically due to the economic situation that had made people adjust their purchase of some items, leading to high unsold volumes of clothes in their depots.
Rev. Quainoo indicated that the Management had explained that the shortage of RFO and drop in sales had led to some financial issues for the company, and, therefore, as part of remedial measures to cut down on cost, the workers had to take their leave while they wait for an improvement in the factors.
GNA