Prime News Ghana

Businesses will struggle to pay April and May salaries - Labour expert

By Justice Kofi Bimpeh
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Labour Expert Austin Gamey says most businesses in the country will struggle to pay the April and May salaries of their workers due to the Covid-19 pandemic.

Austin Gamey believes that to help solve the situation of the pandemic there is a need for workers and employers to reach a common ground.

He argued that the discussion currently should not be about pay cuts but rather how workers and employers will agree on ways to handle the situation.

Austin Game noted in a media interview monitored by that there are several other ways to help the situation rather than pay cuts.

READ ALSO : Employers hint of possible layoffs over Covid-19

"Pay cut is not even the issue, I will struggle let me be honest with you even if we have money to pay 50% of their salaries now which means April and May. Thereafter everybody will go and wait trusting God that we will survive and come back to pull our pieces together that is the way the conversation should go. It is not about the position that we want to do a pay cut for the workers no, we don't have to cut peoples pay just under the canopy of this there are several other ways of coming together and talking about the issue in a manner that will be acceptable to both parties, there is sympathy for everybody."

Employers hint of possible layoffs over Covid-19

Some employers have hinted that they might be forced to lay off workers if the Covid-19 does no end anytime soon.

The Covid-19 pandemic has forced many companies to allow staff to stay at home. This has greatly affected the finances of many businesses.

READ ALSO : Fighting Covid-19, Heritage Fund should be the last resort - Economist 

As part of ways to mitigate the impact of the Covid-19 government has also promised some stimulus packages for businesses through the Coronavirus Alleviation Programme yet to be approved by parliament.

Chief Executive of the Ghana Employers Association Alex Frimpong in a radio interview said they are engaging workers unions to find ways of dealing with the situation.

According to him, everybody will understand that issues of layoffs are not matters that are on the table for any business but the circumstances may force job cuts.

" In times like this we are likely to engage the unions and you will expect a lot of challenges on the way but I'm sure they also realised that these are matters that were not within the contemplation of any business. Under these circumstances I'm sure and in that context, reasonableness will prevail and we should be able to strike a balance. The last thing any business will want to do is to lay off workers so let's see how it goes if there is income that releases the businesses as we expect I'm sure that will be the last resort..."