Organised Labour Declares Indefinite Strike Over Haircuts On Pension Funds
Organised Labour has declared an indefinite strike action effective Tuesday, December 27, 2022.
The group made the announcement at a press conference in Accra on Monday, December 19 2022.
According to the Secretary General of the Trades Union Congress(TUC), Dr Yaw Baah, the action is premised on the government’s proposed debt exchange programme.
He said the strike will be in force until the government exempt pension funds from the planned debt exchange programme.
Labour unions present at the press conference included the Ghana National Association of Teachers (GNAT), the Ghana Medical Association(GMA), the University Teachers Association of Ghana (UTAG), the Ghana Registered Nurses and Midwives Association(GRNMA) and the Teachers and Educational Workers Union (TEWU).
Background
The government announced the debt exchange programme on December 5, 2022,
According to Finance Minister Ken Ofori-Atta, the objective is “to invite holders of domestic debt to voluntarily exchange approximately ¢137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.”
Bondholders like pension funds, banks and insurance firms will have to exchange their bonds for one that will earn zero interest next year.
The new bonds will only begin to earn five per cent interest in 2024 and 10 per cent for the remainder of their tenure.
The maturity dates have also been extended, with the first bonds only maturing in 2027.
However, the labour unions vehemently kicked against the programme.
TUC had stated that its members will not participate in the Debt Exchange Programme.
The 500,000-member union said workers would not be part of a programme that would worsen their plight and further plunge them into unimaginable hardship.
The leadership of TUC had written a letter to the Finance Minister, on its position.
They served notice that “If the government refuses to accede to our demand, we will advise ourselves.”
“All workers must be ready to participate fully in any industrial action to protect our pension funds. Workers will no longer bear the consequences of any IMF-inspired or IMF-sponsored policies and programmes,” the Secretary General of the union stated.
The Finance Minister, Ken Ofori-Atta, has however disclosed that government is prepared to engage organised labour over their concerns on the debt exchange programme introduced by the government.
Mr Ofori-Atta said the government would continue to engage organised labour and come to a mutual understanding with them before the deadline for the debt exchange programme.
“We are certainly listening, we have had a lot of engagements, and we will continue with the unions and really also all of us asking ourselves whether an orderly process to where we want to go is what we all seek and within that what sacrifices and burden sharing that we have,” Mr Ofori-Atta said.