Organised labour has issued a one-month ultimatum for the Social Security and National Insurance Trust (SSNIT) to address unresolved issues regarding the management of workers’ pensions.
This demand follows SSNIT’s decision to halt the sale of 60 percent of its shares in four hotels, a move that led to the suspension of a planned nationwide strike.
The strike, initially set to begin today, Monday – July 15, 2024 – was called-off after an emergency meeting of labour union leaders.
The unions had mobilised workers in response to the sale announcement made on Friday, July 12, 2024. In a letter dated the same day, SSNIT informed organised labour of its decision to terminate the sale process.
Call for immediate action
Dr. Yaw Baah, Secretary General-Trades Union Congress (Ghana), emphasised the urgency of addressing pension management issues, stating: “While we are relieved that SSNIT has halted the sale, underlying concerns about how our pensions are managed remain. We expect SSNIT to engage with us constructively within the next month”.
Dr. Isaac Bampoe Addo, Chairman-Forum of Public Sector Workers, echoed this sentiment, adding: “Our solidarity has shown that together we can protect our rights and secure our future. We thank all the working people of Ghana and all organised labour groups for their support”.
Kenneth Koomson, Deputy Secretary General-Ghana Federation of Labour, highlighted the unions’ readiness to take further action if necessary. “We advise SSNIT to take this opportunity to address all outstanding issues. Failing that, we will not hesitate to take the necessary steps to protect our interests”.
The decision to suspend the strike came after an emergency meeting held today, Monday, July 15, 2024. Organised labour has instructed all workers to resume their duties on Tuesday, July 16, 2024, following SSNIT’s commitment to halting the sale.
SSNIT’s plan to sell its majority stakes in six hotels was initially stalled due to a payment dispute.
Since 2018, SSNIT had sought to divest these assets to address their poor financial performance as only one of the six hotels, Labadi Beach Hotel, has paid dividends in the last three years. Labadi Beach Hotel paid its sole shareholder, SSNIT, GH¢25million and GH¢10million for 2022 and 2021 respectively.
The preferred bidder, Rock City, offered US$61.2million for SSNIT’s 60 percent stake in four hotels – which was said to be
slightly above the US$59million valuation based on recent comparable sales.
But disagreements over the payment structure halted negotiations.
Adding to the complexity, the NPRA directed SSNIT to suspend negotiations over concerns about regulatory oversight and potential conflicts of interest.
Despite these, SSNIT remained defiant – saying it aimed to maximise returns for pensioners while defending the sale process’s transparency and integrity.
A subsequent public backlash over opacity of the process and possible undue advantage given Agriculture Minister Bryan Achaempong’s stake in Rock City resulted in truncating the process.
On Friday, July 12, 2024, Rock City formally withdrew its bid for the hotels citing “undue negativity” that has been associated with the transaction.
It further mentioned SSNIT’s failure to adequately engage all its stakeholders regarding the situation, alongside media commentaries which it said were creating damaging perceptions about the Rock City brand.
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