The Industrial and Commercial Workers' Union (ICU) has formally appealed to President John Mahama to stop the proposed sale of a 70 percent majority stake in the Volta Aluminium Company Limited (VALCO). The union argues that VALCO is a strategic national asset that should remain under state ownership. They highlight recent operational improvements and concerns about potential job losses and reduced worker welfare under private management.
This appeal follows a protest by VALCO workers and ICU national officers in Tema against the proposed transaction. Mr. Morgan Ayawine, General Secretary of ICU-Ghana, stated that credible information indicates the Ghana Integrated Aluminium Development Corporation (GIADEC) intends to release a 70 percent equity stake in VALCO to Arch Holdings Consortium. This transfer would hand over the management and operations of the company to a private investor, which the union believes undermines national interests.
The potential sale of VALCO comes at a time when Ghana is actively seeking to industrialize and add value to its raw materials. VALCO is a cornerstone of the country's Integrated Aluminium Industry. Maintaining state control over such a vital enterprise aligns with broader national development goals focused on local content and economic self-reliance. The proposed transaction could impact Ghana's long-term strategy for its bauxite and aluminium resources.
Mr. Ayawine emphasized that transferring a controlling stake in VALCO to a private investor would deprive the State of ownership of a strategic national asset. He warned that the proposed transaction poses significant risks. These risks include potential job losses, reduced workers' welfare, and adverse financial consequences for both the workforce and the State. The union believes that the progress made by VALCO demonstrates Ghana's capacity to manage the enterprise efficiently.
VALCO has recorded significant progress under a structured optimization programme. This programme is guided by a five-year roadmap aimed at restoring operational efficiency, expanding production capacity, and strengthening the company's competitiveness. Investments in plant and equipment, infrastructure rehabilitation, operational improvements, and workforce development have already begun to improve the company's performance. This progress supports the ICU's argument that VALCO can thrive under state management.
The union views VALCO's pivotal role in Ghana's Integrated Aluminium Industry as critical. They believe it should remain wholly owned by the people of Ghana. Mr. Ayawine expressed confidence that President Mahama, known for his commitment to indigenization and sustainable employment, would consider their concerns. The ICU trusts the President will not allow GIADEC to proceed with a transaction that could disadvantage the nation's strategic interest, VALCO, its dedicated workforce, and the people of Ghana.
The decision on VALCO's future will be closely watched by labor unions, industry stakeholders, and the public. It will signal the government's approach to strategic national assets and its commitment to local control versus private investment. The outcome could influence future privatization debates and the government's industrialization agenda. President Mahama's response to the ICU's appeal will be a key indicator of policy direction in this critical sector.