Pension

Labour unions give govt 21-day ultimatum over second-tier pension funds

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Isaac Addo

CHARLES ANDOH

Twelve labour unions have given the government a 21-day ultimatum to pay their second-tier pension funds into their custodian account lodged with the Bank of Ghana (BoG).

They have, therefore, threatened to embark on a nationwide strike, if the government fails to accede to their demands within the stipulated period.

As early as 10 a.m. yesterday, some members of the unions, including the Health Service Workers’ Union (HSWU), Ghana Registered Nurses and Midwives Associations (GRNMA), Ghana Medical Association (GMA), Ghana National Association of Teachers (GNAT) and the Civil and Local Government Staff Association of Ghana (CLOGSAG), had gathered at the Ministries area to register their displeasure about what they described as unfair treatment by the government.

Addressing the media at a press conference earlier, the Chairman of the coalition, which is also known as the Forum, Mr Isaac Bampoe Addo, said the unions had been deceived for far too long.

“The Forum would wish to state that if by November 15, 2016, the government has not complied with its obligations of paying us our pension funds, we will have no option but to embark on a nationwide industrial action,” he said.

Legal issues

In October 2014, the 12 labour unions embarked on a strike due to unsettled issues with their second-tier pension funds.

The union was subsequently dragged to court in May 2015 by the government. Later, the government softened its stance and asked for an out-of-court settlement to ensure that the unions returned to work.

In a consent judgement, the court asked the government to ensure that by April 1, 2016, the transfer of the five per cent tier two monthly deductions were paid directly into the account of the unions.

The court also instructed the government to reimburse expenses incurred by the labour unions in setting up their trust and schemes.

“But as we speak, the government has failed to abide by any of the obligations, the reason for which we are battling it until we finally see that our funds have dropped in our account.

“The delay in transferring the five per cent tier two monthly deductions to custodian banks nominated by the government is worrying,” Mr Addo stated.

Maturity age

In an interview with the Daily Graphic after the press conference, the General Secretary of GNAT, Mr David Ofori Acheampong, said per the law, the beneficiaries would start receiving their lump sum by 2020.

That, he said, should inform the government to quickly pay the amount into the account, “because 2020 is just four years away’’.

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