Health Service Workers Union fights government over a pension “haircut”

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The Health Services Workers’ Union (HSWU) has promised to oppose any effort by the government to interfere with its members’ pensions.

At a press conference on Sunday, HSWU General Secretary Franklin Owusu Ansah stated, “If the government feels it so vital to execute the debt restructuring, we will encourage them to ring-fence the Pension Funds of Workers.”

Ghanaian workers cannot endure their current conditions until death. We’’ve had enough!

This follows a report on government debt restructuring plans that was leaked, which purports to result in a “haircut” for bondholders and capital market investors.

Bondholders will get a zero interest rate in 2023, a 5% interest rate in 2024, and a 10% interest rate in 2025 as part of the debt restructuring for domestic bondholders in terms of interest payments.

In addition, the government plans to move all maturing bonds’ maturities forward or lengthen their terms by 10 years.

It was discussed during a recent gathering of the country’s financial institution CEOs, government representatives, and finance minister Ken Ofori-Atta.

In response to the development, the HSWU is concerned that the government is interfering with the present and future of the employees who made sacrifices in the goal of having a brighter future.

According to the general secretary, the government’s policy solutions to the economic crisis are causing unfavorable difficulty for its members and all employees in general since investments and pensions have been put at danger as a result of the government’s activities.

“The promulgation of the Act 766 was to resolve the problem of inadequate and low Pensions that was received by workers. The second Tier was designed primarily to give contributors higher lump sum benefits. In the light of this, anything short of this would be calamitous to workers.

“Our members, who have suffered with inadequate pay for years, are shaken by all the events that are taking place.

Franklin Owusu Ansah lamented, “The acts and intents of the government call into doubt the concepts of saving and investing.


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