Organised Labour Refuses To Call Off Strike, Demands Dismissal Of SSNIT Board And Leadership

• Organised Labour has refused to call off its nationwide strike despite SSNIT terminating the sale of the hotels
• According to Organised Labour, there has been a breach of trust and demanded the dismissal of the SSNIT Board and leadership
• The labour group also noted that until their demands are met, staff will not return to work

Organised labour has refused to call off its nationwide strike despite the Social Security and National Insurance Trust (SSNIT) Board announcing the termination of the sale of the hotels following Rock City’s withdrawal of their bid.

The strike action commences today, Monday, July 15, 2024.

Organised Labour said the disregard of their demands about the sale of the hotels had left them distrustful of the board.

They now demand an overhaul of the SSNIT board before work resumes.

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Rock City Hotel withdraws bid from SSNIT hotels sale after organised labour threatens strike

Speaking on Citi FM, the National Secretary of the University Teachers Association of Ghana (UTAG), Dr Eliasu Mumuni, explained that disregarding their warnings and concerns before their strike demonstrated a breach of the labour group’s trust.

He said that when NPRA stepped in to put the transaction on hold, organised labour was satisfied, only for NPRA to approve the clandestine sale of the hotels.

Per The Herald Ghana, Mumuni said SSNIT’s statement announcing the termination of the sale cannot be trusted, hence their demand for a complete overhaul of the SSNIT board and leadership.

What has SSNIT said about the deal?

The trust has previously defended its decision to sell a 60 per cent stake in its hotels to Rock City Hotel.

SSNIT's response followed a petition to the Commission on Human Rights and Administrative Justice on the conflict of interest in the deal.

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The trust said the deal to partner with an investor started in 2018 through International Competitive Tendering (ICT) processes, as prescribed by the Public Procurement Act.

It also noted that the advertisement was published in The Economist's January 5-11, 2019, edition. This led to 15 firms expressing interest, following which six were shortlisted.

SSNIT said the Rock City Hotel submitted the best and strongest technical and financial proposal, so it is negotiating to sell a 60 per cent stake in four hotels: Labadi Beach Hotel, La Palm Royal Beach Resort, and Elmina Beach Resort.

North Tongu MP Samuel Ablakwa, a critic of the deal, contends that selling SSNIT’s shares violates procurement procedures and wants the commission to stop the sale, per Graphic. He also criticised it as a form of state capture.

Ablakwa further asserted that Acheampong, who owns Rock City Hotel Limited, has breached the Constitution by holding a professional position without permission. This violates Articles 78(3) and 98(2) of the 1992 Constitution.

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Organised labour to shut Ghana down on July 15 over sale of SSNIT hotels to Bryan Acheampong

SSNIT reserves projected to hit 0 by 2036

YEN.com.gh also reported the International Labour Organisation projected a complete depletion of SSNIT's reserves by 2036.

It said that starting in 2029, total contributions, investment income, and other income will no longer be sufficient to pay for annual expenditures.

Source: YEN.com.gh