Policy think tank IMANI Ghana, has declared its support for the strike by twelve labour unions in the country.
The labour unions have embarked on an indefinite strike in protest of government’s failure to pay public sector workers their tier two pension funds into a private account.
[contextly_sidebar id=”xsC7O3dvxhSksNQTDUjr5f9EndUg97gA”]Government has described the decision by the labour groups as “unlawful” and “unnecessary” but the think tank believes that the strike is justified.
In an interview on Eyewitness News, the Minister of Labour and Employment, Haruna Iddrisu. said the unions declined participation in a meeting called by government to address their[labour unions] grievances.
In a statement released on Wednesday and signed by its founding President and CEO, Franklin Cudjoe, IMANI stated that the strike was inevitable after “very little efforts were made” following appeals to the government to address the concerns of the unions.
Some of the unions on strike are the Coalition of Concerned Teachers, Ghana National Association of Teachers (GNAT), National Association of Graduate Teachers (NAGRAT), Public and Health Service Workers Union and the Ghana Registered Nurses Association.
The rest are the Government Hospital Pharmacists Association, Ghana Medical Association (GMA) and the Civil and Local Government Staff Association (CLOGSAG).
According to IMANI, the labour groups should consider legal action against the government, for its lack of “accountability as to what the contributions [made by workers] have been used for,” as the workers now “risk not getting their lump sum benefits” when they retire.
Citi News checks at the Tamale Teaching Hospital on Wednesday, have revealed that the strike has already started taking a toll on activities there.
Correspondent Abdul Karim Naatogma said some patients have been left stranded as doctors at the hospital comply with the strike.
But the situation in Accra is not as serious as in Tamale.
Citi News reporter Franklyn Badu reported that doctors at the Korle Bu Teaching Hospital have not yet started following the directive.
Most workers at the various ministries, departments and agencies are also working because they claim they are unaware of the strike.
Below is the full statement from IMANI:
Why current strike action by Ghana’s Labour Unions is Justified.
I have noticed that Labour Unions in Ghana have served notice to government that they are striking indefinitely until their tier two pension funds are paid. I knew it would come to this after direct appeals were made by IMANI and myself to the Finance Minister and President to treat the matter with urgency and care in 2012 and 2013! Very little efforts were made.
Below are scenarios staring the workers and for which they are justified in their current actions.
- Workers who retire now now risk not getting their lump sum benefits. In fact people who have retired since 2011 but have made the 5% Tier 2 contributions still cannot access their lump sum benefits based on the contributions made since January 2010. This is a potential crisis.
- There may be no accountability as to what the contributions have used for. The longer the status quo remains, the direr the accountability question becomes. In the words of a former CEO of NPRA , “It is important that serious efforts are made to reconcile contributors data to ensure that cash and investment holdings that are under the custody of NPRA in aggregate is equal to the total liability due to the contributors before statements are sent out to them. The caution is that Defined Contribution is fully funded and at any point in time the contributors’ statement and the funds should be the same.”
- Since the NPRA is not a Fund Manager, they have neither the resources nor the skill to be investing the contributions they have received since January 2010, in order to maximize returns for workers contributions. The Ghanaian worker ultimately suffers.
- From an economic perspective, very important source of revenue needed for national and private sector development is still being held by the NPRA because all they can do is to invest the funds in Government treasures. This is assuming that the funds have been invested at all. What’s the proof that the funds are available anyway? Potentially, income from pension contributions is more sustainable than even oil. For as long as people continue to work, there will continue to be pension contributions whereas oil reserves can actually run out. Scheme trustees can invest funds in the private sector, real estate, listed equities (to develop our stock market), government treasuries (to sponsor government projects), etc.
In the light of the above, we demand the following to take place with immediate effect: - The NPRA should immediately, without delay, be asked to produce an Investment report showing how much monies have been received, what it has been invested in return on investment over the period.
2. The NPRA should be ordered to announce a cut-off date for taking Tier 2 contributions into the Temporary Pension Fund by employers.
3. Employers be informed to make their mandatory Tier 2 and voluntary Tier 3 contributions into schemes of their choice starting from contributions.
4. The Board Chairman (or the entire Board) of the NPRA made to step aside while a forensic audit is undertaken on the stewardship of the NPRA over the Temporary Pension Fund and the investment activities of the NPRA with respect to same.
Meanwhile, the striking workers can proceed to court..and they are going to court actually.
Respectfully yours,
Franklin Cudjoe
Founding President & CEO, IMANI
By: Edwin Kwakofi/citifmonline.com/Ghana