General News of Monday, 13 April 2015

Source: The Finder

Labour meets on IMF bailout, Tier 2 Pension, utility tariffs today

Organised Labour will hold a crunch meeting at 10am today to deliberate on a number of issues affecting the Ghanaian worker.

The meeting is in response to a story by The Finder last Wednesday in which unionised workers expressed their dissatisfaction at the deafening silence of Organised Labour on pressing national issues.

At this morning’s meeting, a number of pressing national issues will be discussed and positions taken.

Among the issues to be discussed are second tier pension, International Monetary Fund (IMF) bailout programme, public sector wages and recent increases in utility tariffs by the Public Utilities and Regulatory Commission (PURC), and the worsening rolling power cuts.

Reliable sources within Organised Labour told The Finder that, even though, the second tier pension is in court, several workers continue to retire miserably.

As a result, Organised Labour has a responsibility to keep pressure on government until such a time an acceptable outcome is reached.

The sources explained that recent increase in utility tariffs was a bad idea because, with the rolling power cuts, unions are unable to negotiate for salary increment for workers.

Therefore, the increases in utility tariffs would only make the Ghanaian worker worse off.

The sources said the meeting will also discuss the IMF bailout.

According to the sources, Organised Labour is surprised at the announcement that the $918m is not for direct budgetary infusion, but strictly for balance of payment.

Organised Labour recalled that at the initial stages, government had said the bailout would be used to sanitise the public sector wage bill by removing all ghost names.

It, therefore, comes to Organised Labour as a surprise that the $918m is not for direct budgetary infusion, but strictly for balance of payment.

The sources told The Finder that today’s closed-door meeting is expected to make concrete pronouncements on the various issues.

Last week, some unionised workers told The Finder that the leadership of Organised Labour has failed to take any concrete steps to save workers in the face of recent retrenchment of workers due to power outages and general economic difficulties.

Speaking to The Finder on condition of anonymity, some workers in both private and public sectors said they are baffled that Organised Labour, which is supposed to be the mouthpiece of Ghanaians workers, has been mute in the midst of the storm.

For example, the workers do not understand why Organised Labour failed to publicly speak about the worsening power crisis which is causing alarming lay-offs.

They are also worried that some few individual unions have been left alone to battle government over ‘dumsor’ and fuel price reductions. The workers have been incensed by Organised Labour’s silence over increases in utility prices recently.

According to them, government would have reduced fuel prices to reflect the world market price of crude oil, which would provide some relief for ordinary Ghanaians.

From January to date, 560 workers belonging to ICU have been laid off.

The breakdown includes 238 by Cocoa Cola Company Limited, 180 by Mantrac Ghana, 58 by Cadbury Ghana Limited, and 26 by Novotel Hotel. Mr Kotei said his outfit is inundated with redundancy letters from manufacturing companies.

Latest information from the Industrial and Commercial Workers’ Union (ICU) indicates that about 2,000 workers are now likely to lose their jobs by June unless the business environment improves.

This is based on the official communication the union has received from about 60 major companies (including both local and multinationals).