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SOLIDARITYSOLIDARITY LETTERS POUR IN FROM UNICOF LOCALLOCAL UNIONS OCTOBER 30, 2008: Twenty solidarity letters have poured in from nationwide local union branches of the Union ofIndustry, Commerce and Finance workers (UNICOF of GTUC). This is the beginning of the show of solidarity to come from the over 70 branch membership. The union’s members in the sectors of banking, petroleum, hospitality, insurance, manufacturing, aviation, automobile, food and beverage, indicated in their letters that they are ready to fully support whatever form of strike action that the National Executive Council (NEC) – the union’ Board, would decidebe decided on. In their solidarity letters, the locals said they have followed over the last few months the issue of the termination of Bro. Isaac Dekayie, the Vice Chairman of the ProCredit Local Union, and are convinced that a good case has been made to deserve their solidarity, particularly the bad faith exhibited by the Management of ProCredit at the latest attempt to deal with the matter. A release from the union stated that the members were alarmed at the twist that Employers have placed on the High Court decision in the Ghana Telecom case, which has empowered employers to indiscriminately terminate employees, especially those unionized, without any justifiable cause or reason whatsoever; adding that this is a precedence that poses a fundamental threat to the livelihoods of all workers. The local unions also affirmed that they were ever ready to participate in the intended strike action if Management of ProCredit fail to let reason prevail and reinstate Bro. Isaac Dekayie, immediately. Some local branches that have indicated their solidarity are from Agricultural Development Bank, Honda Place, Latex Foam, Japan Motor, NCR, La Beach Hotel, All Terrain Service, GAFCO, Wahome Steel, Paloma Hotel, Oman Forfo, Interplast Ghana Limited, Aviation Handling Service, Shoprite, Gemini Life Insurance, Ghacem, Dutchotel Nshonaa, Nestle Ghana Limited, CFAO Ghana Limited, and Eastern Region UNICOF Branch. More solidarity letters are expected to come in next week from the rest of the over 70 members comprising over 12,000 individual membership strength. |
BANK OF GHANA : PRESS RELEASE GOVERNOR, DR PAUL A. ACQUAH WINS CENTRAL BANK GOVERNOR OF THE YEAR AWARD October 30, 2008 Governor of the Bank of Ghana, Dr Paul A. Acquah, has been awarded Central Bank Governor of the Year at the prestigious African Banker Awards 2008. A citation written by Omar Ben Yedder, Chairman of the organizing committee of the African Banker Awards and Associate Group Publisher of IC Publications and read in honour of the Governor at the awards ceremony states: “Dr Acquah was born in Juabo, a village in the Western Region of Ghana. A graduate of the University of Ghana and Yale University in Economics, Governor Acquah obtained a Ph. D at the University of Pennsylvania, USA, and joined the IMF as a young economist. Rising through the ranks, he eventually became deputy director for the Africa Department in 1998. The Banking system in Ghana is undergoing rapid change and much of this is attributable to Dr Paul Acquah and his technocratic team at the Bank. They have successfully re-denominated their currency. They have successfully issued their first Eurobond, sub Sahara’s first outside of South Africa, and he has pushed a consolidation of the banking sector in Ghana with some great success. The independence and competence of the country’s banking system has also been key to his policy. Dr Acquah has overseen the stabilisation of the sector, based around institutions with a significant capital base. He believes a strong and independent banking system should be at the ‘heart of the government’s growth strategy’. For the first time in 35 years, the Cedi has actually appreciated with respect to the dollar. In November 2003 when this writer was in Ghana the cedi was ¢9,500 to $1. Today it is around ¢9009 to $1. This is definitely an achievement worth praising. Ghana's economy has been transformed by dint of the efforts of Paul Acquah, the Governor of the central bank. When he took over six years ago, the country was on the brink of disaster”. |
| UNICOF STRIKE TO COME ON October 28, 2008 The Union of Industry, Commerce and Finance Workers (UNICOF) has said the ultimatum it issued to embark on strike action is impending unless ProCredit re-instates Mr. Isaac Dekayie into the company’s employment. Latest information from the union said a series of steps have been scheduled towards the final strike action, including high-powered meetings involving the National Executive Council (NEC) – The Union’s Board, comprising its over 70 members across the country to endorse the intended action. Also, the Tema District Council of Labour (TDCL) is expected to meet on the crisis and decide on how the various district councils of labour should mobilize for the strike. The TDCL in August issued its ultimatum for a strike action unless steps were taken to smoothen the imbalances in the labour sector including the reinstatement of Isaac Dekayie. The TDCL had said then that it was surprised that such acts of impunity could happen when Ghana has a National Labour Commission (NLC) responsible for dealing with such deviant behavior and therefore called on the Commission to stamp its authority before the situation got out of control. A fortnight ago the union issued a letter to the NLC complaining on the unfair termination of Bro. Isaac Dekayie and a notice to embark on a strike action. The union is protesting the unfair termination of Mr Dekayie, who was allegedly terminated without reason in this year because management said he solicited for members for UNICOF during working hours. Employed in August 2005, he was the Vice-Chairman of the ProCredit local union of UNICOF of GTUC, and worked at the company’s headquarters at Airport, Accra. UNICOF began moves to unionise workers of ProCredit way back in 2005, and finally got its bargaining certificate in agreement with management. Surprisingly, management began to shuffle its feet when the union called for collective bargaining negotiations upon the formation of the Joint Standing Negotiating Committee. Management in total disregard for the Labour Act 2003 and the 1992 constitution, have consequently victimized UNICOF Local union members despite efforts by the NLC to resolve the glitch. The final straw was the unfair termination of Bro. Isaac Dekayie, which UNICOF is determined to fight to the tooth. Interestingly, management supports a ProCredit Workers Council (PWC), (an in-house association). Instead of negotiating with the duly authorized Union, it is alleged that management has been meeting with the PWC on the benefits of the workers. If proven, this would be a grievous offence and an affront to the laws regulating industrial relations in Ghana. Inside information from ProCredit indicate that the workers were fed up with management tactics and were becoming disillusioned about the company’s prospects. The workers said these are issues that the Ghana Employers Association (GEA) should deal with in order to avert the intended strike action. Last week, the Executive Director of GEA, Rose Karikari Annan described UNICOF’s intended action as sympathy strike that was against the Law, as such strikes affected unrelated organizations and total productivity, therefore workers and the union should be patient as the tripartite committee was taking steps to intervene in the impasse. Labour analysts spoken to said GEA claims that sympathy strikes are baseless are untrue as there was nothing like that in the labour law. Moreover, UNICOF’s intended strike action would be very legal because the union has followed all the processes to have arrived at the point of going on strike. According to these analysts, it was time for the shareholders to check the goings-on in ProCredit Ghana to protect their investment interests, which they can do by acting through their embassies. ProCredit has 11 global shareholders from seven countries, namely Belgium, Dutch, Netherlands, Salvador, Germany, Switzerland, United States as well as the World Bank Group. A source said the chairperson of the ProCredit Holding Supervisory Board, Dr C. P. Zeitinger is alleged to be behind the untoward behavior of ProCredit in Ghana as he is alleged to have told a workers meeting that he would go to all extents including expending millions of dollars to ensure that the company’s workers do not get unionized. CREDIT: ANEXTRA AGENCY |
| PRESS RELEASE OF THE MONETARY POLICY COMMITTEE OF THE BANK OF GHANA October 28 2008 1. You are most welcome to this press briefing. I should say that this meeting is taking place at a critical time when the global economy is facing arguably its worst crisis since the great depression. The MPC has reviewed the implications for the economy, which I will share with you in this MPC round. 2. Ladies and Gentlemen, latest information point to continued momentum in economic activity over the year. The Bank’s Composite Index of Economic Activity (CIEA) continues to show strong growth into the third quarter of 2008, recording an increase of 6.8 percent. This represents an expansion by 25.4 percent in year on year terms, and was above trend for the last years. The increase in the index was broad-based and reflected growth in all the major sub-components. 3. The latest consumer price inflation numbers released by the Ghana Statistical Service (GSS) showed that headline inflation which rose steadily to 18.4 percent at the end of June 2008, fell in three consecutive months to 17.9 percent in September. Food inflation fell from 17.7 percent at the end of June 2008 to 17.0 percent in September and non-food inflation fell from 18.9 percent to 18.5 percent during the same period. 4. The Bank’s measure of core inflation (defined to exclude energy and utility) which was 12.8 percent at the end of June 2008 has declined steadily to 11.6 percent at the end of September 2008. 5. Both the Bank’s business and consumer confidence surveys show improved indicators and a rebound of both business and consumer confidence after the softening observed in the past successive surveys. Overall assessment of economic prospects was generally quite positive. 6. Evidence from other real sector indicators also point to increased pace in economic activity. Cement production for the first eight months of the year amounted to 1,649,190 metric tons, a growth of 17.1 percent over the level of 1,408,083 metric tons for the same period in 2007. Benchmark retail sales recorded a growth of 40.3 percent compared with sales for the same period in 2007. Labour market statistics showed relatively strong demand for labour with a total of 9,498 jobs advertised, compared with 5,980 for the same period in 2007. 7. The generally strong performance of the economy reflected in the activities of the non financial corporate sector. Financial data released by listed companies for the period ended September 2008 point to strong turnover and profits by companies in manufacturing, distribution, and agricultural activities, driven mainly by cost control measures and efficiency in operations, and aggregate demand growth. 8. Credit to the private sector and public institutions continued at a rapid pace into the third quarter of 2008. For the 12-month period to August 2008 credit to the private sector and public institutions increased by GH¢1,627.8 million (46.6 percent) compared with GH¢1,368.3 million (64.4 percent) recorded for the same period in 2007. The private sector accounted for GH¢1,572.5 million (96.6 percent) of the total credit flow, and this raised private sector credit outstanding to the equivalent of GH¢4,303.0 million. · In real terms credit to the private sector grew at an annual rate of 33.4 percent, some easing from 41.8 percent recorded at the end of 2007 and 43.9 percent for the corresponding period in August 2007. · Distribution of the annual credit flow was somewhat broad-based, with the services sector accounting for 39.9 percent, commerce and finance (16.3 percent), miscellaneous (12.6 percent), manufacturing (7.7 percent), and construction (7.6 percent). All the other sectors recorded increases of between 0.3 per cent and 5.4 per cent, but their relative shares declined. · Enterprises accounted for 73 percent of the increase in credit to the private sector over the 12-month period, and up from 67 percent for the same period in 2007. The share of households eased to 22 percent from 31 percent. 9. The latest credit conditions survey by the Bank of Ghana show a general net tightening of credit conditions for enterprises, with a shift in accommodation from corporates to small and medium scale enterprises (SMEs). Evidence also continues to show that banks increased availability of credit to households but credit for house purchases tightened in the third quarter of 2008, against the background of strong demand for credit by SMEs and households. 10. The banking system continued to show strong asset growth and profitability during the year through September 2008. Total assets of the banking industry stood at GH¢9,676.8 million in September 2008 (a growth of 36.0 percent), compared with GH¢7,114.1 million (56.2 percent) for the same period in 2007. The growth in assets was funded mainly by deposits which amounted to GH¢6,238.6 million (an annual growth of 45.2 percent). This may be compared with a deposit growth of 42.7 percent for the same period in 2007. There was however, an increase in total borrowings (domestic and foreign borrowings) from GH¢1,075.9 million in the year to September 2007 to GH¢1,256.1million in the year to September 2008. 11. All the financial soundness indicators of the banking industry, measured in terms of earnings, portfolio quality, liquidity, and capital adequacy remained strong into the third quarter of 2008. Non-Performing Loans (NPL) ratio and the NPL net of provision both edged down over the quarter from 8.7 percent and 12.7 percent respectively in June 2008 to 7.6 percent and 9.2 percent in September 2008 respectively. Similarly, loan loss provision to gross loans ratio also edged down from 6.2 percent to 5.9 percent over the same period. Banks’ solvency remained robust at 13.9 percent in September 2008, up from the 13.8 percent in June 2008. Generally, all the banks maintained capital adequacy ratios within the prudential limits, (with ratios in the range of 10.1 percent and 19.6 percent). 12. On the execution of the 2008 budget, provisional banking data for the first nine months of 2008 show that revenue growth has been strong and in line with budget forecast and the pace of economic activity. 13. Total revenue and grants for the period January to September 2008 amounted to GH¢3,451.5 million (21.1 percent of GDP) compared with GH¢3,127.3 million (22.4 percent of GDP) for the corresponding period in 2007. Of this amount, grants accounted for GH¢428.4 million (2.6 percent of GDP) compared with the budgetary estimate of GH¢338.5 million and GH¢499.2 million (3.6 percent of GDP) recorded for the same period in 2007. 14. Total expenditure (excluding externally financed capital expenditure) for the period amounted to GH¢4,782.5 million (29.4 percent of GDP) compared with GH¢3,382.0 million (24.2 percent of GDP) in 2007. The Government budget recorded a narrow fiscal deficit (excluding externally financed capital expenditure) of GH¢686.4 million (4.2 percent of GDP) compared with GH¢293.6 million (2.1 percent of GDP) registered for the same period in 2007. 15. The borrowing requirement of the narrow fiscal deficit of GH¢686.4 million, and a net foreign loan repayment of some GH¢278.9 million were mainly financed from the domestic economy to the tune of GH¢547.6 million (3.4 percent of GDP) and GH¢471.8 million of the sovereign bond proceeds mainly to cover investment in energy. 16. The stock of domestic debt (gross) which was GH¢3,708.2 million (26.5 percent of GDP) at the end of 2007 increased to GH¢4,144.8 million (25.4 percent of GDP) in September 2008. External debt stood at US$4,030.0 million (28.1 percent of GDP) at the end of September 2008, up from US$3,590.4 million (24.9 percent of GDP) at the end of December 2007, with most of the increase (US$470.0 million) being on account of multilateral and bilateral creditors. This brings total public debt at the end of September 2008 to US$7,683.4 million (53.5 percent of GDP), up from US$7,411.7 million (51.4 percent of GDP) at end of the 2007. 17. Provisional data available show annual broad money (M2+) growth at the end of August 2008 of 40.7 percent, up from 35.0 percent recorded for the same period in 2007 and 36.3 percent at the end of December 2007. 18. The third quarter of 2008 has seen significant shifts in preferences on the money market away from medium to long term dated instruments, with falling average maturities. This reflects increases in inflation and inflation expectations in the past few months. These shifts have come along with significant re-alignments of interest rates on the money market.
19. External sector developments show some slowdown in the price of the principal export commodities on the international market. The average realized price of cocoa beans exports fell to US$2,671.0 per tonne at the end of September 2008. Average export price of Gold also fell by 2.5 percent to US$889.69 per ounce at the end of September 2008 from US$912.1 at the end of June 2008. 20. The average realized weekly price per barrel of the benchmark Brent crude oil closed September at US$110.7, representing 57 percent increase in year-on-year terms. The price of crude oil has since fallen significantly and was US$61.79 per barrel as at October 27, 2008. 21. The strong pace in economic activity showed in significant growth in both exports and imports through the first nine months of the year. 22. Total merchandise exports at the end of September 2008 stood at US$4,017.5 million, an average annual growth of 30.8 percent. · Exports of cocoa beans and products amounted to US$1,160.9 million, compared with US$910.8 million for the same period in 2007 (an annual growth of 27.5 percent). Cumulative cocoa purchases for the 2007/2008 season through the end of September 2008 amounted to 758,908 tonnes, against a forecast of 650,000 tonnes for the entire crop season. · Gold exports for the first nine months amounted to US$1,751.0 million compared with US$1,247.4 million for the same period in 2007. · Non-traditional exports for the period January to September 2008 amounted to US$716.9 million, compared with US$586.7 million for the same period in 2007. 23. Total merchandise imports for the period amounted to US$7,514.1 million, an annual growth of 31.3 percent. · Non-oil imports grew by 38.3 percent on year on year basis and amounted to US$5,807.2 million and accounted for 77.3 percent of total imports, compared with 73.4 percent (US$4,198.8 million) for the same period in 2007. Capital and intermediate goods account for close to 70 percent of total non-oil import bill for the period compared with 68 percent for 2007. · Oil import bill for the period January to September 2008 was US$1,706.8 million, compared with US$1,523.9 million for the same period in 2007. 24. The merchandise trade deficit for the period January to September 2008 is provisionally estimated at US$3,496.5 million, compared with US$2,695.0 million for 2007. The current account is provisionally estimated to have recorded a deficit of US$2,500.9 million, compared with a deficit of US$1,544.9 million for the same period in 2007. Net capital inflows are estimated to be US$2,203.5 billion, (US$901.3 million for 2007) of which some US$1864 million in private capital including FDI flows. 25. The overall balance recorded a deficit of US$716.8 million for the period January to September 2008, compared with a deficit of US$566.9 million for the same period in 2007, and was financed mainly by drawdown of reserves including the balances of sovereign bond proceeds of US$750 million that accrued in the last quarter of 2007. For the year as whole given the trends in current account and capital inflows essentially seasonal credits associated with cocoa exports, the overall balance of payments deficit is projected to narrow to US$490 million compared to a surplus of US$413.1 million in 2007. 26. Gross international reserves position at the end of September 2008 was US$2,270.2 million. This compares with US$1,811.34 million in September 2007 and represents 2.3 months cover of imports of goods and services. 27. There was increased activity on the foreign exchange market as well as re-alignments of exchange rates during the third quarter of 2008. Total purchases and sales in the foreign exchange market by banks and forex bureaux between January and September 2008 amounted to US$6.6 billion (8.2 percent increase over 2007 level). Total purchases over the period showed a 21.4 percent increase, and total sales also increased by 24.5 percent relative to the levels of the preceding year. 28. Private inward transfers – received by NGOs, embassies, service providers, individuals etc. - through the banks in the first nine months of 2008 amounted to US$6.5 billion, which represents 35.6 percent increase over those for the corresponding period of 2007, which were in turn 13.4 percent increase over the transfers through banks for the same period in 2006. · Of the total transfers, US$1,224.9 million (or 18.9 percent) accrued to individuals, compared with US$1,196.2 million (25.0 percent) in 2007. 29. There was some significant movements in the exchange rate of the cedi to the major international currencies in the third quarter of 2008, following from similar movements in the first half of 2008. Developments in the nominal bilateral exchange rates of the cedi against the three core currencies – the US dollar, the pound sterling and the euro – show that for January-September 2008, the cedi depreciated, cumulatively, against all three core currencies by 15.8, 6.2 and 14.0 percent respectively. This compares with respective depreciations of 5.0, 6.9 and 17.5 percent in the corresponding period in 2007. The result was a real effective depreciation of 6.0 percent in trade-weighted terms with the index at 98.7 (Jan 2002=100). 30. The GSE All-share index gained 65.0 percent (4,291 points) to end September 2008 at 10,890.8 points. This compares with an increase of 13.4 percent in the first nine month of 2007 and 3.7 percent for the same period in 2006. Total market capitalization increased significantly by 46.5 percent (GH¢5,751.0 million) to GH¢18,120.7 million in the first nine months of 2008, driven mainly by price appreciation and rights issues. Outlook 31. Ladies and Gentlemen, the past three months of the year has seen extraordinary turmoil in international financial markets, and the onset of recession in industrial countries that is now spreading their effects globally. The crisis has seen the collapse of major financial institutions, highly volatile stock markets, sharp fluctuations in exchange rates, large depreciation of currencies of certain emerging market economies and sharp reversals in capital flows and diminished investor appetite and lost confidence in counterparty trading, for fears of exposure to toxic assets and general contagion. These have spurred Governments and central banks to take extraordinary steps and coordinated policy measures to shore up the financial system. The measures include large injections of liquidity, capitalization and partial nationalization of banks, the provision of government guarantees to assure depositors. There have been coordinated interest rate cuts by major central banks in the industrialized countries (including Bank of England, ECB, the Federal Reserve Bank) to counter global recessionary pressures. And yet there remains great uncertainty with regard to the depth of the financial market crisis, and the possible extent and duration of the recession and its impact on economies generally. 32. A number of emerging market countries in Asia and Latin America, and Eastern Europe and some industrialized countries have so far been affected by the contagion, via the channel of capital flows, and reduction in the funding for the current account deficits, and exposure of their banking systems to globally and internationally active banks. 33. We have reviewed the possible channels of transmission of the crisis to the domestic environment. From our assessment of the recent performance of the economy, the effect of the turmoil has so far been limited. 34. On the financial sector, one possible link is through the banks’ exposure to counterparties in the form of nostro balances and placements (investments) abroad. Our review shows that DMBs nostro balances and placements, by way of exposure, are currently within internationally acceptable prudential limits and are with reputable financial institutions. And, the industry’s low net open position (a measure of foreign exchange risk) indicates that the banking system is not over exposed. 35. Moreover, outstanding external borrowing by banks, as a source of funding their activities, is less than 5 percent of total bank funding requirements, an indication of their predominant reliance on domestic deposits. Also, given the existing levels of outstanding borrowing, only a recall of a significant proportion (in excess of 50 percent) in exceptional circumstances, would have a material impact on the capital adequacy ratios of banks in the industry. 36. Existing credit lines are a possible source of some pressure. Our data shows that banks maintain credit lines with reputable financial institutions that amount to less than 5 percent of existing total trade, which means that a freeze would be a source of some funding pressures. 37. All these mean that the resilience of the economy to the effects of the fallout of the financial market turmoil appears robust, barring major shifts in the dynamics of the markets. The stock market, for example, has continued to deliver a strong performance. 38. With regard to the impact on the macroeconomy over the medium to long term, one powerful channel is through the commodity markets as aggregate demand slows down with the global recession. Assuming cocoa and gold prices were to soften by some 25 percent, and oil prices were to move back to around US$80 per barrel, this would entail an income loss of 2.4 percent of GDP. There could also be some tightening of donor flows and remittances, and more generally reduced appetite for investment in developing countries. And all these would have implication for prices, macroeconomic balances, and prospects for growth. 39. For the year 2008, the current assessment is that economic activity has continued to be at a reasonably fast pace with strong export growth and underpinned by expansion in domestic demand and fiscal stimulus. 40. While credit conditions have tightened somewhat, credit to the private sector and demand for credit by both households and enterprises continue to be strong. 41. Inflation has started to ease back towards the disinflation path, with core inflation easing more rapidly. The year may close with headline inflation at around 17 percent before returning close to 10 percent in the last quarter of 2009. Available information points to the economy recording a real GDP growth rate of about 6.6 percent in 2008, before easing according to forecast to some 6.3 percent in 2009. The reduction in oil prices is stabilizing and re-enforcing diminishing inflation expectations. 42. The uncertainties in the outlook and the experience from the turmoil in the financial markets underscore the continued need for sound fiscal and monetary policies with margin for policy flexibility and measures that would bolster the competitiveness of the economy to secure private investment and donor flows, ensure a robust and well supervised financial sector, reduce vulnerability to shocks, and strengthen the basis for growth in an environment of macroeconomic stability. 43. With recent developments in the market, especially crude oil, the risks to growth and inflation are now more balanced. 44. In the circumstances, the Monetary Policy Committee (MPC) has decided to maintain the Prime Rate at 17.0 percent. Thank you all for your attention. |
| UNICOF THREATENS STRIKE ACTION OCT 14, 2008, ACCRA: One of the most unpalatable national events is set to hit the country as the Union of Industry, Commerce and Finance Workers (UNICOF) prepares to launch a nationwide membership strike action soon. The strike is aimed at getting management of ProCredit to reinstate Mr. Isaac Dekayie as an employee of the company. According to a correspondence addressed to the National Labour Commission, (NLC) from the union, the only way to avert the impending strike is for the company to recall Bro Dekayie whose employment was terminated by a letter dated 21st July 2008. He was dismissed because the company said as the Vice-Chairman of the ProCredit local union of UNICOF of GTUC,he had flouted the Labour Law 2003 Act 651 by “using office facilities to implore staff members to join the union without management’s consent”. Brother Dekayie was employed at ProCredit in August 2005 and was Credit Risk Coordinator at, until his dismissal in July this year. The company’s headquarters is situated at Airport, Accra . The union hinted that it was mobilizing its more than 10,000 members in the areas of preparation for the strike action, including members from the petroleum, the banking and other financial sectors, manufacturing industries, hotels and food sectors of the economy as well as ProCredit. In procedure with the law, the union has accordingly notified the NLC in a letter dated October 8th, 2008. Apart from the economy that would be most hit by any labour strike at this time, this impending strike would affect Election 2008, customers, families, workers, social lives and above all cripple the company and all its dependants. The desire of the country to avoid any social and economic obstruction and particularly government’s goal to leave a legacy of industrial harmony would once again be miserably marred when this labour unrest occurs. It would be a wake up call for the banking sector to respect and uphold workers rights because it is as if the banks have the impunity to abuse workers and go scot-free, to the extent that the Central Bank had no better example to show. Labour analysts say the strike would have untold consequences as it goes beyond UNICOF into the broader labour movement more so when it is in agreement with an earlier call from the Tema District Council of Labour (TDCL) upon the GTUC to “immediately commence work towards a nationwide action preparatory for the imminent battle to restore the dignity of the Ghanaian worker and that policy on decent work is followed. The TDCL, in a letter dated 25rd July 2008 and addressed to the Minister of Manpower, Youth & Employment, also called for the restoration of Bro Dekayie’s appointment, noting that his termination was a double jeopardy as he was being punished twice for the same alleged offence. The history of unionization at ProCredit has been a rough story so far though the company continues to reap high benefits from the toils of employees whilst denying them their right to unionize; The company has opened more than two new branches this year, including one at Kokomlemle in Accra and another at Nkawkaw in the Eastern Region. However, this time the union and organized labour in general say they would not look unconcerned when the Labour Movement in Ghana was being taken for a Free Ride by companies like ProCredit that do not respect the constitution of Ghana that guarantees freedom of association. The GTUC at its Quadrennial Delegates Conference in August this year made strong mention of the ProCredit-UNICOF outstanding case as a huge destabilizing event in the operations of organized labour. Some employees of the company who are members of the UNICOF local union have have noted that it is time for varying stakeholders like the GTUC, Minister of Manpower, Youth & Employment, Chief Labour Officer, the Ghana Employers Asssociation (GEA), judiciary, and the Ghana Association of Bankers to play active roles in diffusing this time bomb at this sensitive time by making sure that workers rights are observed by both foreign and local investors, especially at ProCredit and other companies like Dutchotel. UNICOF noted in its strike notification letter to the NLC stated that ProCredit has consistently shown bad faith in their dealings and are therefore obliged to embark on a strike action to press home the union’s demand. The union consequently notified the commission that it would go on the strike action if after seven days upon receipt of the letter to the NLC Mr. Isaac Dekayie was not re-instated. The union however remained tight-lipped regarding further comments on the intended strike action. Stay tuned for more... |
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