CLOGSAG Issues Notice Regarding A Looming Indefinite Strike

The National Labour Commission (NLC) and other parties have received notice from the Civil and Local Government Staff Association of Ghana (CLOGSAG) that the association will not hesitate to go on an indefinite strike if the government interferes with the pension funds of employees under the Domestic Debt Exchange Program.

To that effect, it released a press statement that read:

“In light of the above, CLOGSAG will like to entreat all its members to be calm and go about their normal duties and continue to contribute to the good governance of Ghana.

Ayekoo to all workers. We will continue to be on the alert.

CLOGSAG is serving notice on the National Labour Commission that should government default in owning any of the coupons when due for the schemes, it will declare an indefinite nationwide strike,” the Executive Secretary of CLOGSAG Isaac Bampoe Addo stated.

Meanwhile, concerns from the workforce have been expressed regarding the government’s seeming unilateral decision to implement the Programme.

The Program is a component of Ghana’s efforts to restructure its debt as it prepares for an expanded credit line from the International Monetary Fund (IMF).

On that note, domestic bondholders will be required to exchange their current securities for new ones under the policy.

As of Thursday, December 1, existing domestic bonds will be swapped for a group of four new bonds with maturities in 2027, 2029, 2032, and 2037.

All of those bonds will have an annual coupon of 0% in 2023, 5% in 2024, and 10% from 2025 until maturity. And thus, coupons will be paid in two equal installments every two years.

But Mr. Bampoe Addo asserted that the action violated the National Pensions Act, Act 766, and reminded the Minister of Finance, Ken Ofori-Atta, that he should get familiar with the Act’s contents.

Conclusion

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