Government, Organised Labour will work to plug hole created by pension funds exemption – Ofori-Atta

The government is liaising with organised labour to plug the hole created by the exemption of pension funds from the debt exchange programme, Finance Minister Ken Ofori-Atta has said.

Speaking to the media after signing a memorandum of understanding between the government and organised labour, Mr Ofori Atta said: “Obviously, the decision of exempting pension funds is at a cost and we have committed government and the organised labour to work together to ensure that we find means of plugging that hole.”

The government exempted the funds after intense pressure and opposition from several labour unions.

The “government has decided to grant an exemption to all pension funds” in the debt exchange programme, an MoU signed by the Minister of Labour Relations, Mr Ignatius Baffour Awuah, dated Thursday, 22 December 2022, disclosed.

The exemption of pension funds under the programme follows a meeting between the government of Ghana (GoG) represented by the Ministry of Finance, the Ministry of National Security and the Ministry of Employment and Labour Relations on one hand, and Organised Labour/Associations, on the other hand, represented by the leaders of all labour unions/associations.

The government and Organised Labour shall, “however, work together to explore mutually beneficial options within the debt sustainability limits and to also promote macroeconomic stability and economic recovery in the spirit of social partnership,” the statement added.

Organised Labour had threatened a strike if the government failed to exempt the pension funds.

“We are asking the government to exempt us from the debt exchange programme. We have already told the world that if the government doesn’t do that, we will advise ourselves. Today, we are here to announce the advice. The advice is very simple: We have all agreed that because the government has refused to grant our request, we have decided firmly that all workers of Ghana are going to strike on December 27, 2022, and we will be on strike until our demands are met,” Dr Yaw Baah announced days before the exemption.