The local textile industry, which has come under threat from unfair competition and unbridled imports, is gearing up to lay off more of its employees as a cost-cutting measure.
The Akosombo Textile Limited (ATL) is one of the companies that will lay off up to 1,120 of its employees, accounting for up to 80 per cent of its 1,400 workforce.
Industry players fear that if the situation is not salvaged quickly, it could result in the closure of most of the local textile companies.
The General Secretary of the Textiles, Garment and Leather Employees Union (TEGLEU), Mr. Abraham Koomson, told the Graphic Business in Accra, that the bane of the local textile industry could be traced to the influx of pirated textile designs.
He said the phenomenon now portended an increase in unemployment in the country, as the textile companies prepare themselves to embark on an accelerated laying off of their workers to salvage the collapsing industry.
Mr. Koomson explained that there was a high influx of smuggled pirated textiles in the local market which were sold at cheaper prices at the expense of locally produced quality textiles.
The industry used to employ over 25,000 people but now employs only 3,000, according to TEGLEU, which is expecting further reductions in the employment levels of the battered Ghanaian textile industry.
A study conducted by economic research fellow, Dr Peter Quartey, in 2005 revealed that the market share of the local textile manufacturers has also decreased over the years to only 30 per cent with pirated, smuggled and under-invoiced textiles enjoying 70 per cent market share.
"Not only is the industry affected, the state also enjoys its fair share as it is currently losing most of its tax revenue as most of these pirated textiles are smuggled into the country without the payment of the approved taxes," Mr. Koomson noted.
As of 2002, when the determination was carried out, the Budget Statement of the government indicated an annual loss of GH$30 million the state as a result of illicit textiles imports, adding that the high level of graduate unemployment could be worsened if the textile industry was allowed to increase laying off of workers.
Mr Koomson said although the government had set up a Task Force to check the illicit activities, by clamping down on traders involved in the illegal trade and confiscate their goods to discourage the practice, their efforts have proved futile as the pirated textiles are still smuggled into the market and have gradually taken over the market.
The TEGLEU general secretary also described the actions of the market women as illegal and asked them not to run away when the task force stormed the market to demonstrate they were selling original textiles.
"If you know your business is genuine, why would you close your shop and run away when there is a search for pirated textiles on the market," he quizzed, adding that nobody would stop market women from going about their duties if they traded in genuine textiles imported through approved routes and paid the right duties.
Mr. Koomson also urged the public to assist in clamping down on the illegality by considering the price, which should not be incredibly cheap as that should signal pirated textiles.
He said currently the Task Force was praying the courts for a search warrant to enable them to search stores in the market at random.
"There is no hiding place for smugglers of pirated designs into the country. The action is geared towards saving the economy from the loss of revenue, saving the textile industry from collapse and protecting jobs in the Industry," Mr Koomson stressed.
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