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Business News Tue, 31 Oct 2017

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PUWU’s injunction suit against ECG privatization dismissed

An Accra High court has dismissed an application for the interlocutory injunction by the leadership of the Public Utilities Workers Union’s (PUWU) seeking to halt the privatization of the Electricity Company of Ghana (ECG).

According to the court presided by Justice Lorrenda Owusu, her decision was based on the governing principle of balance of convenience.

She further explained that the state had more to lose if the injunction was granted and the final judgment of the substantive case went in their favor. Justice Owusu advised both the workers of ECG and government to continue negotiations in other to reach an amicable agreement.

Background

PUWU dragged ECG, the Attorney-General and the Millennium Development Authority (MiDA) to court in on October 3, 2017, over the privatization of ECG. They have demanded severance packages for ECG workers because of the privatization move.

PUWU in its suit also sought a perpetual injunction to restrain the defendants, their assigns and privies from continuing with the Compact Agreement between the government of Ghana and the Millennium Challenge Corporation (MCC) on August 5, 2014 for the reform of the electricity distribution sector of Ghana by, among other issues, appointing a concessionaire to take over the distribution of electricity from the ECG and related agreements.

PUWU had started agitations in this regard in September, expressing fears that their members will lose their jobs following the Power Compact signed with the United States of America under the Millennium Challenge Corporation (MCC) Power Compact II programme.

They contended that, discussions that went into negotiations for the sale of ECG, did not factor the declaration of redundancy, despite the content of Section 65 of the Labour Act.

Meanwhile, the substantive case is still pending.

Source: citifmonline.com

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