Debt exchange programme: Government must act swiftly to avert labour strike, expert says

A labour expert Y B Amponsah has called on the government to act swiftly to address the concerns of labour unions following their reservation about the debt exchange programme.

Finance Minister Ken Ofori-Atta on Monday (5 December) launched the debt exchange programme in line with the government’s quest to restructure debt and put the economy back on track.

Amponsah said the government’s timely intervention will help avert a total shut down of the public service by the unions.

At least seven labour unions – Teachers and Education Workers’ Union (TEWU), Ghana National Association of Teachers (GNAT), Ghana Registered Nurses and Midwives Association (GRNMA), National Association of Graduate Teachers (NAGRAT), Ghana Medical Association (GMA), Ghana Chamber of Commerce and the Trades Union Congress (TUC) – have raised red flags over the programme.

Appearing on The Asaase Breakfast Show on Tuesday (20 December), Amponsah said the government has been too slow in addressing the issue.

“Is it too difficult for the government to call organised labour for a discussion? You have to engage them because that’s how you handle industrial relations.

“If this matter was handled early, I’m sure there would’ve been some consensus by now,” he said. “This is a negotiable matter. The government is saying A, you want B so it’s a matter of discussion.”

“If I was leading the negotiation, I’ll ask them (organised labour) to push their strike further down so you get some room for negotiation,” Amponsah added.

Listen to the full interview in the attached audio below:

Strike 

Organised labour has declared an indefinite strike effective 27 December to force the government to exempt pension funds from the planned debt exchange programme.

The Secretary General of TUC, Dr Yaw Baah, announced the industrial action at a press conference in Accra.

“We have decided firmly that because the government has refused to grant us our request that all pension funds must be exempted from the domestic debt exchange programme, all workers of Ghana are going to strike on 27 December 2022. We will be on strike until our demand has been granted,” Baah said.

“What it means is that all workers of Ghana should stay at home starting from 27 December. We will stay at home until the government acts. That is straight forward and very simple. We won’t sit down for the vulnerable people to suffer because somebody has made mistakes. We are going to be in our red dresses until we hear from the government,” he added.

Extension of debt exchange programme

Meanwhile, the Ministry of Finance has extended the deadline for the domestic debt exchange programme from 19 to 30 December, an official statement has said.

A statement issued by the Ministry of Finance on Friday (16 December), said the extension will afford the government the opportunity to consider suggestions made by all stakeholders with the aim of adjusting certain measures acceptable within the constraints of the Debt Sustainability Analysis.

“Considering these developments, and taking cognisance of the festive season, we have decided to extend the expiration date of the voluntary offer to Friday 30 December 2022, with a contemplated settlement date on Friday 6 January 2023,” the statement said.

“This extension comes on the heels of the announcement of a Staff-Level Agreement (SLA) with the IMF on 13 December 2022,” the statement added.