Following SSNIT’s decision to halt the sale of 60 percent of its shares in four hotels, a move leading to the suspension of a planned nationwide strike on Monday, July 15, 2024, Organised Labour has issued a one-month ultimatum for the Social Security and National Insurance Trust (SSNIT) to address unresolved issues.
Dr. Yaw Baah, Secretary General-Trades Union Congress, speaking on behalf of Organised Labour, called-off the strike action after an emergency meeting of labour union leaders on Monday.
Since 2018, SSNIT has 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.
However, on Friday, July 12, 2024, Rock City formally withdrew its bid for the hotels, citing “undue negativity” that has been associated with the transaction.
Also, Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo-Maafo, disclosed that the unfavourable payment terms by Rock City Hotel which were rejected by the board of SSNIT played a role in the decision to terminate the deal.
He also said SSNIT listened to the objections from stakeholders and decided to terminate the process.
This notwithstanding, one thing remains clear – and that is the fact Organised Labour’s staunch resistance against the sale resulted in abrogation of the whole exercise, much to the relief of larger society.
SSNIT represents the future of all workers in the country and it is proper for workers to be properly informed about actions to be taken in respect of their pensions. Particularly when an International Labour Organisation (ILO) report forecast that by 2036 the Trust will not be able to pay benefits due to depleting reserves.
According to the ILO, total income – including contributions, investment income and other income – will no longer be sufficient to pay for annual expenditures and benefit payments to pensioners by 2029.
Rejecting the report, the Trust claims it does not pay pension benefits with funds from its reserves. Bearing the above in mind, Organised Labour called off the strike in response to termination of the sale – though it has signalled in the strongest terms that a month’s respite is being given SSNIT to resolve all outstanding issues pertaining to workers’ pensions.
Therefore, deeper stakeholder engagement is required to allay the mistrust. This is because recent events have cast a shadow over SSNIT’s reputation.
Mismanagement issues, political interference and questionable decisions have plunged SSNIT into a deep financial and operational crisis, necessitating urgent restructuring.
