Coronavirus: 70% of car rental workers asked to go home temporarily

Operators in most sectors are reducing human capital or salaries so they can still keep their business running.

The latest is the Car Rentals Association has asked about 70% of its staff to go home temporarily as they think of how to continue their business.

The president of the Car Rentals Association of Ghana, Seth Ocran, told Accra-based Citi FM, said even though the partial lockdown has been lifted other measures such as the border closure has impacted their business greatly.

The closure of the border has adversely affected businesses within the tourism and hospitality sector which comprises the Car Rentals Association.

Mr Ocran said “largely, the informal sector of the economy such as the markets is opened. But the whole economy particularly the formal sector is still in a lockdown so we are still the same as all our vehicles are grounded, we are not working and we are still at home. So, for us, whether partial lockdown or the lifting of the ban on the movement of people has not really changed anything as far as our business is concerned.”

The nature of their job allows them to operate from airports, hotels, conference facilities, and commute clients to and from other corporate engagements.

However, this has changed since President Akufo-Addo announced the closure of Ghana’s border and has further by Executive Instrument, extended the border closure till the end of May this year.

Mr Ocran said aside from reducing the staff before the partial lockdown, the slow pace of work has forced managers to ask about 70% of the total workforce to stay home temporarily.

On salaries, Mr Ocran said “The issue had to do with people and every company had a different approach; some terminated the appointments with the hope that when things get back to normal, such people will be recalled. Others also negotiated with their employees for either 40 or 50% pay cut.”

He said they are not sure when they will resume work fully.

Mr Ocran said commercial banks can help them in this crisis by freezing interest payments on loans.

He was also hopeful that a GHC3 billion soft loan to be arranged by the Bank of Ghana and the Ministry of Finance would help their businesses in these times.

“In a meeting with the President, he assured us that the 3 billion cedis is a soft loan and a moratorium will be given in terms of payment terms and it will be made available for us to apply. Therefore as members, we will apply for that.”