LGWU against 2.5 per cent pension deductions

Kumasi, July 24, GNA - The Ashanti Regional branch of the Local Government Workers Union (LGWU) has added its voice to the call by the Trades Union Congress (TUC) on the government to refrain from deducting 2.5 per cent of workers pension contributions to fund the National Health Insurance scheme.

In a resolution adopted at the end of a delegate's congress in Kumasi on Thursday, the LGWU said any such deductions would affect their pension package of workers.

It said pensioners on the Social Security and National Insurance Trust (SSNIT) pension scheme were already facing severe economic hardships as a result of the meagre amount paid to them by SSNIT.

The workers, therefore, suggested that part of the income tax being paid from workers' salary should be used to fund the scheme instead of trying to compound the problems of the overburdened workers. They also appealed to the government not to sell its shares in the Ghana Commercial Bank (GCB) since that decision could affect workers, especially, those in the rural areas whose salaries passed through the bank.

The workers called on Parliament to expedite action on the new local government bill, which was before it.

Mr S.Y. Bonna, General Secretary of LGWU, urged workers to work hard to increase productivity.

He said the new local government bill when passed into law, would help address some of the problems facing local government workers.