ADB saga: UNICOF went too far - GFL

The Ghana Federation of Labour (GFL) has lashed out at the Union of Industry, Commerce and Finance Workers Union (UNICOF) for going too far with its quest to stop the Initial Public Offer (IPO) of the Agriculture Development Bank.

It is describing UNICOF as a failure since it could have used a better approach to get its grievance heard.

The Labour Division of an Accra High Court dismissed an application by UNICOF stopping the public offer of ADB which will enable the bank to list on the Ghana Stock Exchange (GSE).

Speaking to Business Finder, General Secretary of the GFL, Abraham Koomson said UNICOF went beyond its boundaries which have dented its image.

“I think that they are now antagonizing ADB management and their employees. My advice is that….that is not the way to go. Once you go to court it is life and death….if your wife takes you to court over a misunderstanding your marriage is heading towards collapse.”

He explained that “the issue is about policy. Ghana Government has 52 per cent shares in ADB and Bank of Ghana has 48 percent, so they are the owners of the bank and under the labour act, Section 8 and 9, the employer and employees duties are spelt out.”

Continuing, he said “when it is about policy, the union doesn’t have any say in that, the employer can decide to sell, disengage or do whatever. We only have a say if the responsibilities that the law talks about are not being fulfilled.”

On whether the ADB sale had some political undertones, Mr Koomson disagreed saying even some members of the opposition had accepted the decision to list the bank on the capital market for Ghanaians to own part of the bank.

He added that UNICOF had created a bad relationship with the management and the board of the bank which will take a long time to heal.

According to him, UNICOF must have clear evidence that the MD and some board members are mismanaging the bank.

Meanwhile, media reports indicate that barely 24 hours after the Labour Division of an Accra High Court threw out an application for interlocutory injunction filed by UNICOF to stop the listing of ADB of the GSE; UNICOF filed a writ at the Supreme Court for another order of interlocutory injunction. It had earlier filed a suit at the Supreme Court challenging the ADB IPO due to the bank’s failure to seek parliamentary approval.

The motion on notice is seeking an order of interlocutory injunction to restrain the defendant ADB, their agents, assigns, privies and or contractors from proceeding with continuing, or resuming the sale of the shares of the bank pending final determination of the suit filed at the court.

The IPO is expected to raise about $300 million to support the bank’s operations.