Organised Labour has proclaimed its intention to go on an indefinite strike beginning December 27, 2022.
Dr Yaw Baah, Secretary General of the Trades Union Congress (TUC), announced this during a news conference on Monday, 19th December,2022.
He said that the strike is being held as a result of the government’s decision to implement a debt exchange program.
He said the strike will last until the government exempts pension funds from the proposed debt exchange program.
The Ghana National Association of Teachers (GNAT), the Ghana Medical Association, the University Teachers Association of Ghana (UTAG), the Ghana Registered Nurses and Midwives Association of Ghana, and the Teachers and Educational Workers Union (TEWU) were all present at the briefing.
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The TUC has previously warned the government to exempt its members’ pension funds from the debt exchange program.
They believe the program will jeopardize the stability of their retirement income.
“……we have analysed the debt exchange programme and after a thorough analysis of the programme and a very extensive discussion among the leadership of TUC and affiliates, our conclusion is very firm. And it is that the programme will negatively affect the pension funds of our members and consequently their retirement income security,” he said.
“Already, pension is low and we would have thought that our government will do everything to protect the small pension we have. Instead, they are introducing programme inspired by the International Monetary Fund to cut further pension income. Therefore, the Trades Union Congress and all its affiliates have decided that the pension funds of our members will not be part of the domestic debt exchange programme,” he added.
According to Dr. Anthony Yaw Baah, the Union has written to the Minister of Finance requesting that all pension funds invested in government bonds be withdrawn from the domestic exchange program.
“…….we are also demanding in that letter that within one week from today, the government should publicly announce that all pension funds, including SSNIT are exempted from the debt exchange programme. Again, in the letter, we have served notice that if government fails to accede to our demands within one week, we will advise ourselves,” Dr. Baah said.
It would be recalled that government on December 5, 2022, announced a debt restructuring measure.
According to Ken Ofori-Atta, the objective is “to invite holders of domestic debt to voluntarily exchange approximately GH¢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 as pension funds, banks, and insurance companies will have to exchange their bonds for zero-interest bonds next year.
The new bonds will only begin earning 5% interest in 2024 and 10% for the balance of their term. The maturity dates have also been pushed out, with the first bonds due to mature in 2027.
SOURCE: myjoyonline
