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General News of Thursday, 13 November 1997

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Court Stops Hand Over Of Hotel EREDEC

Koforidua (Eastern Region), 12 Nov.,

A Koforidua High Court yesterday restrained the Eastern Regional Development Corporation, Divestiture Implementation Committee and the Attorney-General from handing over Hotel EREDEC, its management or assets to the Trades Union Congress (TUC), the new purchasers of the hotel until the final determination of a suit pending before it. This followed an ex-parte motion of interim injunction granted by the Presiding Judge, Mr. Justice K. Omari-Sasu, filed by 46 workers of the hotel against their redundancy without payment of their entitlements, following the hotel's divestiture. In the supporting affidavit filed by Mr. E.K. Jones-Mensah on behalf of the workers, they contended that Hotel EREDEC has been sold by the defendants to the TUC. As a result of this, they argued, the TUC is expected in Koforidua tomorrow, Thursday, November 13, to take over the hotel, thereby making the workers redundant. The workers fear that if that should happen ''our contractual rights to be paid before we leave the services of the defendants would be severely and irreparably prejudicated as we would not have been paid and would have no lawful rights against the new owners to compel payment of the entitlement''. According to them, the conditions of service under their collective agreement signed by the management of the hotel, the workers are to enjoy payment of severance pay and other outstanding benefits before leaving the service of the hotel.