To ensure peace and stability on the labour front, the Social Security and National Trust (SSNIT) has decided to cancel the intended sale of 60% stakes in four hotels, including La Palm and Labadi Beach hotels to Rock City, owned by Mr Brayan Acheampong, the minister for food and Agriculture.
The cancellation, which was contained in an official statement signed by the board chairperson of the Trust, Madam Elizabeth Akua Ohene, followed notice by Organised Labour threatening strike action today, should the process continue.
REGULATOR ACTS
In the midst of the controversy surrounding the sale, the regulator of national pensions, the National Pension Regulatory Authority (NPRA) on June 28, 2024 directed SSNIT to suspend the process.
The NPRA explained in the statement signed by its Chief Executive Officer, John Kwaning Mbroh that the directive was to enable it to do due diligence, following the controversy and public debate on the deal.
The NPRA referred to the National Pensions Act, 2006 (Act 766) particularly Section 67(2), which requires the NPRA to issue relevant guidelines to guide SSNIT’s investment decisions to issue the suspension directive.
“In furtherance of this requirement, you are hereby directed by the Board of the Authority to suspend all the processes seeking to engage Rock City Hotel Limited as the strategic investor in the sale of the above-mentioned hotels,” the letter said.
However, speaking on the floor of Parliament on Thursday, July 11, 2024 the Minister for Employment, Labour Relations and Pensions, Ignatius Baffour Awuah, announced that SSNIT had been given the green light to continue with the sale process.
According to the minister, the suspension was to enable it to be furnished with all information relating to the sale of the hotels, which, at the time of briefing Parliament, SSNIT had done.”
“Yes, so, as a minister, I can tell you on authority that NPRA has since indicated that they have seen the processes and they think that SSNIT can go ahead.”
STRIKE
The following day, after the minister had announced that SSNIT had been given the go-ahead to continue the sale, Organised Labour threatened a nationwide strike action.
The minister’s announcement, according to Organised Labour, added to the developments on the proposed sale, especially after its leadership had met with President Akufo-Addo on this matter.
Recalling that the regulator had suspended the deal, Organised Labour said it found “it extremely difficult to understand how and why NPRA would turn around to approve such a flawed deal, two weeks after the directive.
“We, therefore, demand that SSNIT terminate the process immediately. From Monday, July 15, 2024 all workers in Ghana must not go to work until SSNIT publicly announces the termination of the process for the sale of its shares in the hotels,” it stated.
In what appeared to be a well-planned action, the nation witnessed droves of strike notices from the various labour groups, all commencing today.
Among others, the Ghana Medical Association issued a roadmap for the industrial action, beginning with the withdrawal of Out Patient Department services on Monday, July 15–17, 2024.
Per the roadmap, if the demands of Organised Labour are not met on or before July 21, all services of the Ghana Medical Association will cease.
The Judicial Service Staff Association of Ghana also informed its members not to report to work today, as part of the industrial action. The Civil and Local Government Staff Association, Ghana (CLOSSAG) released a statement declaring “an indefinite strike effective Monday, July 15, 2024.”
The case was not different with the Public Utility Workers’ Union of Trades Union Congress in Ghana. It wrote a letter stating that its members would join the nationwide strike action.
TERMINATED
In the late hours of Friday, July 12, 2024 SSNIT issued a statement that announced the discontinuation of the sale of the 60% stake in its hotels.
It said, “The Board and Management of SSNIT wish to inform the public that the process to divest 60% of SSNIT’s stake in the hotels has been terminated.”
In a letter signed by the Board Chair, Elizabeth Akua Ohene, and addressed to the Secretary-General of the Trades Union Congress, Dr. Anthony Yaw Baah, SSNIT officially informed Organised Labour that it had discontinued the sale.
NOT ENOUGH
On Saturday, July 13, 2024, the University Teachers Association of Ghana (UTAG), even though do not contribute to SSNIT, issued a statement unequivocally supporting the strike declaration by organised labour.
Meanwhile, the private investor at the center of the whole drama, Rock City Hotels, has pulled out of the deal.
