Business & Finance

Organised Labour Forsakes Planned Strike

Organised Labour has abandoned its plans to stage an industrial action over the inclusion of pension funds in the government’s Domestic Debt Exchange Programme (DDEP).

This was announced by the General Secretary of the Trades Union Congress (TUC), Dr Yaw Baah at a news conference on Thursday, December 22.

This was after the government agreed to exclude pension funds from the DDEP.

The Union kicked against the government’s plans to implement a debt exchange measure that will grant bondholders the option to exchange their existing securities for new ones that will offer zero, five per cent and ten per cent coupons respectively in the first year, the second year and third year as part of measures to reduce the debt burden of the country.

Reports say six per cent of the government’s domestic debt is pension funds.

The stakeholders, therefore, threatened to stage an industrial action on December 27 if the government failed to exempt their pensions.

At a meeting between the government and organised labour on Thursday, December 22, the government succumbed to the demand of the latter.

A memorandum of understanding between the parties indicates that pension funds will be exempted from the programme.

In addition, the parties agreed to explore mutually beneficial options within debt sustainability limits, and promote macroeconomic stability and economic recovery.

Addressing the media, Dr Baah said the deal reached is in the interest of the country.

“There’s no way that such a thing should happen again. We have promised them (government) that we will continue to work together as social partners so that our country will get back to the stability that will benefit all of us.”

Source: Fuseini

Related Articles

Back to top button