THE Trades Union Congress of Ghana (Ghana TUC) on Monday expressed stiif opposition to Ghanaian government’s declared intention on debt exchange programme, describing the plan as an IMF imposed policy that will have serious negative impact on the pensions of Ghanaian workers.
The labour centre asserted that its affiliate members would not be part of a programme that would further deepen their current economic dilemma.
In the texts of a press conference made available to National Record, the centre’s Secretary General, Dr Yaw Baah, said “the Trades Union Congress (TUC) and its Affiliate National Unions have decided that the pension funds of our members will not be part of the Domestic Debt Exchange Programme.”

Dr Baah disclosed that the TUC has “already dispatched a letter to the Minister for Finance demanding that all pension funds invested in government bonds should be completely exempted from the Domestic Debt Exchange programme.”
He added: “We are also demanding that, within one week from today, government should publicly announce that all pension funds, including SSNIT, are exempted from the Debt Exchange Programme. In the letter, we have served notice that if government fails to accede to our demand within one week, we will advise ourselves.”
Reports indicate that several national labour unions in Ghana have also kicked against the imposition of cuts on pension funds as part of the debt exchange programme aimed at supporting the country’s economic recovery.
Unions that have expressed opposition include the Ghana National Association of Teachers (GNAT), Ghana Registered Nurses and Midwives Association (GRNMA), the National Association of Graduate Teachers (NAGRAT), Ghana Medical Association (GMA), and Ghana Chamber of Commerce. The unions vowed to resist any attempt by the government to reduce the value of pension funds of their members held in institutional bonds.
TUC, the biggest labour centre in Ghana, with a membership population of over 500,000, according to Baah, is ready to go all out to defend its stance and protect the interest of workers.
The centre gave the Ghanaian government a one-week ultimatum which will lapse on Monday, December 19, 2022, to announce the exemption of pension funds from the Debt Exchange Programme or face the wrath of workers.
“Before I conclude, I would like to remind you that the one-week ultimatum for government to announce the exemption of pension funds from the Debt Exchange Programme will expire on Monday, 19th December, 2022. We will hold another press conference at 12:00 noon on that day (Monday, 19th December, 2022) to update our members and the general public on General Council decisions and actions that will be taken, in the event that government refuses to accede to our demand to exempt pension funds from the Debt Exchange Programme.
“All workers must be ready to participate fully in any industrial action to protect our pension funds. Workers will no longer bear the consequences of any IMF-inspired or IMF-sponsored policies and programmes. Government is responsible for all the consequences of its decisions, including the decision to seek IMF bailout,” Baah stress in the textx of the press conference held at the TUC headquarters and attended by members of its 23 affiliate unions.
Dr Baah said the surge in inflation in Ghana has completely eroded the purchasing power of workers, especially those in the public service. He said “the value of the cost-of-living-allowance (COLA) granted in July 2022 has been completely wiped out” and that “workers on the Single Spine Salary Structure (SSSS) are receiving the lowest salaries in the public sector.”
He argued that it was “time for a substantial increase in salaries for workers, especially those on the Single Spine Salary Structure who are providing important public services such as health, education, security and other public/civil services. That is why we will continue to demand a realistic pay increase that reflects current inflationary trends in the ongoing public sector pay negotiations. Anything short of that will push many public sector workers and their families into severe poverty and destitution.”
The debt exchange programme
Ghana’s Minister of Finance had on December 5, 2022 announced that the government would implement a voluntary debt exchange programme as part of measures to reduce the debt burden and give the government some breathing space to deal with the fiscal challenges facing the country.
With the programme, domestic bondholders face steep interest rate cuts and lengthening of tenure on their investments. Investors in dollar denominated Eurobonds will also have to contend with both interest rate cuts and the loss of up to 30 per cent of the principal amounts invested.
In addition, domestic debt investors will be asked to exchange their existing securities for new ones that may offer a zero coupon in the first year, five per cent in the second and 10 per cent in the third year.
Besides, holders of short-term debt securities, comprising Treasury-Bills of 91-Days, 182-Days and 364-Days treasury notes will, however, be excluded from the debt exchange programme.

