The Trades Union Congress (TUC) is preparing for a showdown with the government, if the latter fails to exempt workers’ pension funds from the ongoing Debt Exchange Programme announced by the Finance Minister on December 5.
Holders of domestic debt have been asked to voluntarily exchange approximately GHS137 billion of the domestic notes and bonds for a set of four new bonds maturing in 2027, 2029, 2032 and 2037 to be issued by government as part of a wide range of measures to restore the economy.
But after a “scrupulous” analysis of the government’s proposal, the TUC together with the affiliate unions says it wants the government to “completely exempt” the TUC pension funds from the programme.
This position, the Secretary General of TUC Dr. Yaw Baah told the media on Monday, has since been communicated to the Minister of Finance in a letter.
The government has therefore been given a week ultimatum to announce the exemption of the TUC pension funds from the debt exchange programme.
“Before I conclude, I would like to remind you that the one-week ultimatum for government to announce the exemption of pension funds from the Debt Exchange Programme will expire on Monday, 19th December, 2022,” he said.
“All workers must be ready to participate fully in any industrial action to protect our pension funds,” Dr. Baah warns of the consequences if the government refused to heed their demand.
The Finance Minister had said the Debt Exchange Programme is a key requirement for Ghana to secure a deal with the International Monetary Fund.
But Dr. Baah said, “Workers will no longer bear the consequences of any IMF-inspired or IMF-sponsored policies and programmes.
“Government is responsible for all the consequences of its decisions, including the decision to seek IMF bailout.”
Meanwhile, the TUC has asked government to reconsider plans to increase VAT and introduce more taxes in 2023 as proposed in the 2023 budget and policy statement of government.
It also kicked against the government’s decision to freeze pubic sector employment.
“What is the point of free SHS if graduates cannot secure jobs? Moreover, employment freeze will negatively affect public service delivery…This is not the time to destroy jobs. This is the time to create and protect jobs.”