Deputy minister designate for energy, John Jinapor has said he favored giving some shares to workers of the Tema Oil Refinery (TOR). He believed this is an innovative way of developing a sense of ownership in the struggling company.
He said this during his vetting by the Appointments Committee of Parliament, Monday. He was answering questions on how to resuscitate TOR.
The former spokesperson for the President Mahama said "when you give employee shares you create a sense of ownership".
He explained that TOR was saddled with technical efficiency and capital infusion challenges. TOR was built to process lower grade crude and cannot refine oil from the new local fields unless significant investment was made.
The refinery has been shut down since October last year.
The Deputy minister designate also said the refinery had secured $30 million from the government for its plant sustainability and profit enhancement programme.
The TOR debt currently stands at $350 million after the government managed to clear almost a billion Ghana cedis in the past four years.
It currently requires about $650 million for its day-to-day operations.
Mr. Jinapor answered questions on nuclear energy options and re-branding Electricity Company of Ghana (ECG).
By using an employee share scheme, companies give employees a stake in the business and help improve its performance. It also encourages employee loyalty as to retain the shares.
They have to continue to be an employee, so another benefit is the retention of valued staff. At the hiring end of employees, an employee share scheme can be used as an incentive or reward and can help recruitment.
This is done in two ways. Offering a share option which is the right to buy a certain number of shares at a fixed price, some time in the future, within a company.
The other is the share award scheme. It involves giving employees actual shares rather than options, free or for less than their market value.
The value of shares given to employees is treated as employment income