Labour unions agitate over use of pension funds to cushion collapsing banks

Ernest Addison, BoG Boss.

Trades Union Congress (TUC) has hinted of a meeting later today to consider government’s decision to support some solvent but distressed banks using private pension funds without negotiations with fund managers or contributors.

The meeting follows concerns raised by some labour union about the move which they say was done without consultation and fears that workers pension funds could be at risk.

President of NAGRAT, Angel Carbonu, who spoke to XYZ News says the TUC will not allow the government to take over the scheme contributors fought hard to establish. He note with concern how government’s unbridled interference in SSNIT over the years, by using workers’ money for unviable projects have resulted in huge losses.

The Ghana Federation of Labour has also says there is a looming danger, and demands that government immediately halts plans for the Ghana Amalgamated Trust (GAT) to invest private pension funds into some local banks.

“We think it is inappropriate. We think it is wrong, and we think that it must not be encouraged at all,” the Federation’s Deputy Secretary-General, Kenneth Koomson told Citi News.

Source: Ghana/myxyzonline.com