Tuesday, 05 November

YEA pushes for abrogation of Zoomlion contract over unpaid salary of sanitation workers

General News
Kofi Agyepong

The Chief Executive Officer of the Youth Employment Agency (YEA), Mr Kofi Baah Agyepong, has called for the suspension of the agency's contract with Zoomlion Ghana Limited, citing the company’s failure to pay sanitation workers for an extended period.

Workers have gone without pay for over nine months, sparking widespread complaints and frustration.

In a statement issued on Wednesday, Mr Agyepong disclosed that during a meeting on May 29, 2024, YEA’s board proposed changes to the management agreement with Zoomlion.

These changes, submitted to the company on May 31, suggested that YEA take over direct payments to sanitation workers.

However, Zoomlion rejected the proposal, arguing that renewing the existing contract would enable the company to secure credit from financial institutions, which it claimed was necessary to settle outstanding payments.

Under YEA's new proposal, sanitation workers would receive a direct allowance of GH₵250, while Zoomlion would be paid GH₵600 per worker for management services.

Zoomlion, however, insisted on maintaining control over both the GH₵600 management fee and the GH₵250 worker allowance, despite its ongoing delays in payment.

As a result, YEA has now recommended suspending the contract with Zoomlion and handing over street cleaning responsibilities to the Metropolitan, Municipal, and District Assemblies (MMDAs) until a resolution can be reached.

The agency also plans to engage the Ministry of Finance to address the outstanding payments owed to workers.

In response to the growing concerns, Zoomlion’s Director of Communications, Emma Osei-Duah, acknowledged the payment delays but clarified that the unpaid period is nine months, not a full year.

She explained that the delays were due to the structure of the contract with YEA, which requires the company to pre-finance payments before reimbursement.

Ongoing discussions between both parties aim to resolve the issue, she concluded

Source: Classfmonline.com/Cecil Mensah