Kaiser Cutbacks Spark Ghana Worker Protests

Ghana's largest and most controversial foreign investor, Kaiser Aluminum, announced on June 9 that it was cutting production by one-fifth at its giant aluminum plant in Tema "because of the deep and prolonged recession in world aluminum markets."

Kaiser owns 90% of the Volta Aluminum Company (VALCO) in Ghana, with Reynolds Aluminum having the other 10%.

Kaiser's announcement stirred up anti-company sentiment that has raged occasionally over the past few years in Ghana (see MM, February, 1980, April 1982).

"More than 10,000 workers" demonstrated on June 18 in opposition to Kaiser's cutback, the Daily Graphic of Accra reported. The protest was peaceful, but bitter, with workers carrying signs reading: "Kaiser is big international cheat;" "VALCO, away with yankee tricks;" "The exploitation of workers and the nation must be stopped," the Ghanaian Times noted.

The employees' organization at the VALCO plant issued a resolution stating that workers "categorically and unreservedly condemn VALCO" for its decision, and urging the government to renegotiate contracts with multinational companies and consider nationalization when necessary, the Ghanaian Times reported.

Ghana's new government, led by Jerry Raelings, reacted sympathetically towards the demonstrators. Secretary for industries, science and technology, Kaku Kyiama, ad dressed the demonstrators, and "remarked that even though Ghana had thrown the white rulers out, they were back, in the form of multinational corporations."

Rawlings, who has been critical of multinational companies since seizing power in a coup on December 31 (see MM, February 1982), also criticized Kaiser's decision, calling it one of a series of "attempts by VALCO and other multinationals to cripple the economy." It is time, to "concentrate on the big cheats," Rawlings continued in a speech he gave on June 19, adding that "we have to do away with the situation which makes us serve other people's economy."

In response to requests from the Rawlings government, Kaiser has not yet cut back production as originally announced, and is negotiating future levels of production with the government.