Ghana: Ghanaian OMCs Pay Better Salaries Than Foreign-owned Companies–CEMSE Report Reveals

The Center for Environmental Management and Sustainable Energy (CEMSE), an advocacy group in the Republic of Ghana, has revealed that Oil Marketing Companies (OMCs) with dealer-owned, mostly foreign filling stations, poorly pay their fuel attendants with salaries ranging from GH₵600 to GH₵1,200 per month.

However, locally-owned OMCs have salaries ranging from GH₵1,250 to GH₵2,000 per month.

OMCs like Star Oil, Zen Petroleum and Dessert Oil were found to pay their workers better compared to the others.

The study also showed that some OMCs do not pay Social Security and National Insurance Trust (SSNIT) contributions for their staff.

Contrary to expectations, the surge in sales volumes of the industry was anticipated to improve the welfare of the employees within the end of the value chain of petroleum distribution and marketing but the result is the opposite.

The International Labour Organisation defines decent work as employment that offers equitable income, job security, social protection, bargaining power, workplace equality among employees and better prospects for personal development and integration.

According to the CEMSE, most OMCs in Ghana do not provide decent work for their fuel attendants.

The Executive Director for CEMSE, Benjamin Nsiah, observed the situation is unfair and must be corrected.

“Looking at the hazardous environment within which these employees operate, if they are paid between GH₵600 and GH₵1,200 with no medical allowances and insurance policies to cover them and their family in times of need, then it is grossly unfair.”

The study further showed that most of the employees of OMCs work between eight to sixteen hours daily, implying that some fuel attendants work over sixty hours a week, which is against the ILO’s standardised working hours of 48 hours per week.

“Employees who work overtime are expected to get some overtime bonuses but most OMCs do not pay overtime bonuses to these workers. It must be noted that some few OMCs that fully own and operate their filling stations pay between GH₵1,500 and GH₵2,000 per month with bonuses of GH₵200 per month,” the study uncovered.

The study also found that the low salary received by fuel attendants ultimately affects their work performance and output.

The CEMSE’s review of the OMCs’ performance report in the last three years has observed that OMCs that pay their employees well, between GH₵1,500 and GH₵2,000 per month are contracting the market shares of OMCs that do not pay their employees well.

“The latter’s market performance is observed to be dwindling because some of their employees engage in unfriendly market practices that drive away consumers, and this is so because of lower salaries received monthly to survive in a highly cost-inflated Accra,” the study revealed.

Another reason for the poor performance of low-wage paying OMCs is because of lack of attraction of experienced and honest fuel attendants.

“This disparity highlights that dealer-operated OMCs tend to offer lower wages compared to those without dealers, a situation that needs addressing within the industry,” the study concluded.

Source: https://energynewsafrica.com