Ghana Airports Company says increase of staff salary threatens future expansion

The Kotoka International Airport

The Ghana Airports Company Limited (GACL) has said the cost of taking care of salaries and other employee costs currently stands at 38 per cent of the company’s revenue.

This, according to the GACL, has serious implications for the generation of surplus revenue to fund the numerous projects of the company.

The Board Chairman of the Company, Mr George Kuntu Blankson, speaking at a press conference in Accra, said despite the financial challenges, the company is committed to giving its staff adequate training in areas that would support the company’s business strategy.

He said the press conference was held to throw light on management’s position over recent staff agitation for upward adjustment in wages and salaries.

Mr Blankson said the workers had asked for a 25 per cent salary adjustment but management had tabled a five per cent adjustment because of the financial state of the company. He indicated that the company needs the money to expand facilities at the Kotoka International Airport (KIA) to accommodate the influx of more and new airlines.

He said management is disappointed that workers hoisted red flags last week in protest without taking into consideration the future plans of the company.

According to Mr Blankson, after the break-up of the Civil Aviation Authority into the Ghana Civil Aviation Authority and the Ghana Airports Company Limited, the company has been facing financial challenges as it took over staff of about 645 coupled with the fact that it has become liable for the payment of accrued staff benefits and the payment of some GH¢1,386,305.20 as long service awards to 174 staff members.

Meanwhile, the company, as part of its future plans, is expected to re-model the entire terminal building of the KIA to ease traffic as this will provide seven aerobridges to facilitate boarding of passengers.

Other projects to be undertaken include the upgrading and expansion of the domestic terminal for international operation, refurbishment of washroom facilities at the KIA and the construction of an airport business centre.

By Eunice Menka

Ghana Airports Company says increase of staff salary threatens future expansion

The Ghana Airports Company Limited (GACL) has said the cost of taking care of salaries and other employee costs currently stands at 38 per cent of the company’s revenue.
This, according to the GACL, has serious implications for the generation of surplus revenue to fund the numerous projects of the company.
Board Chairman of the Company, Mr George Kuntu Blankson, speaking at a press conference in Accra, said despite the financial challenges, the company is committed to giving its staff adequate training in areas that would support the company’s business strategy.
He said the press conference was held to throw light on management’s position over recent staff agitation for upward adjustment in wages and salaries.
Mr Blankson said the workers had asked for a 25 per cent salary adjustment but management had tabled a five per cent adjustment because of the financial state of the company. He indicated that the company needs the money to expand facilities at the Kotoka International Airport (KIA) to accommodate the influx of more and new airlines.
He said management is disappointed that workers hoisted red flags last week in protest without taking into consideration the future plans of the company.
According to Mr Blankson, after the break-up of the Civil Aviation Authority into the Ghana Civil Aviation Authority and the Ghana Airports Company Limited, the company has been facing financial challenges as it took over staff of about 645 coupled with the fact that it has become liable for the payment of accrued staff benefits and the payment of some GH¢1,386,305.20 as long service awards to 174 staff members.
Meanwhile, the company, as part of its future plans, is expected to re-model the entire terminal building of the KIA to ease traffic as this will provide seven aerobridges to facilitate boarding of passengers.
Other projects to be undertaken include the upgrading and expansion of the domestic terminal for international operation, refurbishment of washroom facilities at the KIA and the construction of an airport business centre.

By Eunice Menka

2 Comments
  1. Jeff says

    Workers of the a company are not shareholders who funds could be retained to meet expansion need of a company . It is fair to pay workers economic wages and not use the excuse that you are undertaking development projects. Will the worker be given equity (shares ) in respect of their share of fair wages retained .So that they can sales either to the company or any interested person When they are leaving the company . It is also inportant to look at manage remuneration and their expenditure . The 38 percent mention by the board chairman include management remuneration, which has been growing since decoupling . Board chairman travels expened both to his hometown and abroad which have nothing to do with company business. The managing director has land cruiser v8 and a pick-up purchased in 2008 and 2010 repectively but has just purchased audi A6 in addtion.The so-called laibilities was agreed by the some management that it could be take care of .GCAA was supposed to pay workers redundancy packer but they instead agreed to defferred it, Agreed with workers that they were in continue service, that their employment condition shall never be vary to the worker disadvantage. This is good since the GCAA could not riase the amount required and the two company are still going to be owned 100 percent by Ghana gov’t .But the problem is how revenues expected were shared between the two companied. GCAA was given amount revenue then it required operation and developmental need while GACL had the oposite.To make the problem, worst ,gov’t takes part of airport tax directly depriving GCAL from using that to develop the airports.

  2. Jeff says

    The board chairman visits to his constituency which is sponsord by GCAL ,vehicle, fuel and cash each time he is to visit constituency including numerous foriegn travels paid by GACL and the mismanagement going on , careless purchases of material and unprudence in contract agreements are the things that are threating future expansion. The 38 percent attributed to staff salary include management remuneration which is the big and is growing each month . why wouldn’t management disclose their remuneration sperate as required by good coporate management.

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