COVID-19: TUC calls for Long-term solutions to address threat on businesses, jobs

COVID-19: TUC calls for Long-term solutions to address threat on businesses, jobs

                                                       Director of Research and Policy at the TUC, Dr. Kwabena Nyarko Otoo

The Trades Union Congress (TUC) wants various stakeholders to hold a round table discussion and implement long-term solutions to minimize the impact of the COVID-19 pandemic on businesses and other corporate institutions.

The Union also wants the Government to have a dialogue with employers and workers to design the right solutions to address the situation at hand.

This, the TUC believes will go a long way to identify a friendly environment for businesses in the country to thrive post-COVID-19 and also control massive job losses amidst the outbreak.

Director of Research and Policy at the TUC, Dr. Kwabena Nyarko Otoo, speaking in an interview called on the government, employers and employees to as a matter of urgency come together and dialogue on ways to relieve businesses from the impact of the pandemic.

“The stimulus as we have now is a good start. But if you look at all the sectors that have been affected now and workers that are looking up to the government, you clearly see that we need to do more as a country in order to be able to contain the situation that we have at hand. This is only the first generation of the effect that we are seeing. Assuming that all the companies that have asked their workers to work from home become successful in ensuring that they use ICT to do the work, some of those workers will not come back to the workplace. It is a very difficult situation for employers and also for workers.”

“These are medium to long term effects we need to consider. The scale of the problem is such that, you need to try as much as possible to match the intervention with the expected loss. So we need to dialogue more -employers, workers, and the government need to use the social dialogue mechanism to actually come to the size and magnitude of the problem we are facing and define the kind of interventions required to address those things.” he noted.


Impact of COVID-19 on businesses

The economic impact of the COVID-19 pandemic continues to take a toll on businesses in Ghana. This devastating impact has caused some companies in the country to shut down their operations due to low patronage.

Other companies are preparing to cut down on permanent staff while some have already laid-off casual workers.

The situation exacerbated when the president announced the partial restriction on movement. This saw many businesses in the formal sector reducing their working hours and shutting down some of their branches with the exemption of those providing essential services as said by the president.

The financial repercussions of the COVID-19 pandemic led some staff to lose their jobs with others forced to take salary cuts as there was some reduction in production.

With the announcement of the ease of the restrictions, some formal businesses have started opening closed branches.

Economists and experts have also lauded the lifting of the partial lockdown saying it is prudent for the economy to revive from its recession.