The Centre for Environmental Management and Sustainable Energy (CEMSE) has revealed that it has conducted a Petroleum Industry Employee Welfare Survey, which states that many tanker drivers and fuel attendants face challenges such as low salaries and lack of benefits.
The study has shown that some tanker drivers earn as little as GHS 1,000 per month, while fuel attendants’ salaries range from GHS 600 to GHS 2,000 monthly, depending on the ownership structure of their employers.
Benjamin Nsiah, Executive Director of CEMSE, emphasized the need for regulatory intervention, stating, “The NPA should develop a compensation framework for fuel attendants and their OMCs to ensure income equity among employees.”
The report calls for stricter enforcement of existing emolument frameworks and improved tracking of employee benefits to promote fairness in an industry that has seen a 115% growth over the past two years.
Find below the statement:
LOWER COMPENSATIONS (SALARIES) FOR TANKER DRIVERS AND FUEL ATTENDANTS DESPITE PETROLEUM DOWNSTREAM GROWTH
Ghana’s petroleum downstream sector has seen tremendous growth from Ghc32.94 billion in 2021 to Ghc71 billion in 2023 representing about 115% growth in two years. The sector’s contribution to GDP in 2021 was 7.2% and this increased 8.4% in 2023. The sector employs over 20,000 Ghanaians, primarily in transport and marketing. The Centre for Environmental Management and Sustainable Energy as part of its sustainable leadership research conducted a survey titled Petroleum Industry Employee Welfare Survey (PIEWS) for Ghana’s Petroleum Downstream. The purpose of the research is to understand employee compensation and welfare situations among tanker drivers and fuel attendants in Greater Accra.
Findings
Employee Welfare Issues Spark Concerns
The study found that majority of drivers and fuel attendants face challenges such as low salaries, lack of medical benefits, and inadequate safety measures.Study Reveals Disparities in Tanker Drivers’ Emoluments. The CEMSE study revealed that tanker drivers receive varying emoluments, with some earning as low as GHS 1,000 per month. The study also found that some employers do not pay their drivers’ Social Security and National Insurance Trust (SSNIT) contributions as well as medical allowances and personal protective wear allowances although these were captured in the 2017 agreed emolument framework. The report also found inadequate safety training for about a third of the drivers surveyed.
Study Reveals Disparities in Fuel Attendants’ Emoluments
The study revealed that Oil Marketing Companies (OMCs) with dealer-owned or operated filling stations (retail outlets) poorly pay their fuel attendants with salaries ranging from Ghc600 per month to Ghc1200 per month while OMCs that fully owned their filling stations have salaries ranging from Ghc1250 per month to Ghc2000 per month. OMCs like Star Oil, Zen Petroleum, and Dessert Oil were found to pay their workers well compared to the others. Some of the OMCs were not still paying SSNIT for their attendants and the majority of the OMCs were not paying extra bonuses although the majority of the employees worked between eight to over sixteen hours (8 hours to 16+ hours).
Recommendations
Regulators Urged to Enforce Emolument Framework
1. The study recommends that regulators enforce the 2017 emolument framework signed by stakeholders for tanker drivers. The framework should be adjusted to account for inflation and ensure compliance.
2. Also, the NPA should develop a compensation framework for fuel attendants and their OMCs so as to ensure income equity among employees. This will also reduce the under-delivery of petroleum products by some fuel attendants at the fuel stations.
Medical Compliance Framework Needed
1. The study also recommends the formulation, implementation, and enforcement of a medical compliance framework to promote healthy practices among drivers.
Credit Institution Proposed
1. The study suggests that tanker owners and OMC Association allocate funds to create a credit institution that provides soft loans for drivers and fuel attendants to meet pressing financial needs.
Regulators Tasked to Track Payments
The National Petroleum Authority (NPA) should develop a mechanism to track payments of the right emoluments and other benefits to ensure full compliance. This promotes the growth of the industry because employment does not become a Stopgap measure for some employees but an attractive and a decent job that improves their welfare.
Benjamin Nsiah
Executive Director, Centre for Environmental Management and Sustainable Energy
(CEMSE)
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