The Ghana Mine Workers’ Union (GMWU), under the Trades Unions Congress of Ghana, has backed any government action against persons or institutions whose misdeeds led to the collapse of seven local banks in the country.
Local banks in Ghana are facing serious challenges with many analysts calling for pragmatic measures to address the issue.
On August 1, 2018, the Bank of Ghana consolidated five local banks namely Beige Bank, Construction bank, Royal bank, uniBank and Sovereign bank, into what it now calls the Consolidated Bank Ghana Limited.
[contextly_sidebar id=”Yjk9XpN0eWqyqmEM7C5Zkseg1tcgmFaT”] According to the Governor of the Bank of Ghana, Dr. Ernest Addison, some of the banks obtained their licenses through false means by presenting documents that painted a picture as though they could meet the new capital requirement.
The Mine Workers Union say the activities of those who managed these banks appear to have been deliberate leading to the collapse.
Speaking at the opening session of the union’s national executive council meeting, Prince William Ankrah, General Gecretary of the GMWU, said “the union fully supports government as it takes steps to punish those involved in this willful criminality.”
Mr. Ankrah, whiles acknowledging some actions taken by the BoG on the matter, hurriedly added that the central bank could have played its supervisory role well enough to avert the situation.
“Much as we commend the Central Bank for the timeliness of its bold decision to liquidate the distressed banks to protect depositors’ funds and stabilize the financial system, we cannot wholly absolve them of blame for the regulatory lapses that has brought us where we are.”
He also stated that the Union is concerned about the dire consequences the collapse could have on other sectors of the financial space, adding that government properly compensates all employees affected by the shake-up in the banking industry.
“We are particularly worried about the likely implication of the development on the other sub-sectors of the financial system like insurance and pensions. Government must also ensure that the workers who are likely to lose jobs are protected and adequately compensated.”
Establishment of a New Pay Adjustment Framework
Mr. Ankrah further added that the Union has developed a progressive and strategic oriented wage model intended to make negotiations more scientific based, and cut down on resources expended to reach an agreement under the open market approach.
“I can confidently inform you that the framework so far developed is robust, predictable, fair, simple and sustainable, and it is hoped that it will stand the test of time and eventually lead to the whole mining industry adopting this progressive tool going forward.”
–
By: Nii Larte Lartey/citinewsroom.com/Ghana