SSNIT hotels issue: Labour must be more dynamic
Organised Labour caused a major stir in the local economy last weekend when it called for a mass strike of public sector workers as the controversy surrounding the intended sale of 60 per cent stake in four hotels by the Social Security and National Insurance trust (SSNIT) reached a crescendo.
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It was this crucial act by labour that forced the hand of SSNIT to announce the discontinuation of the intended sale to bid winner and prospective buyer, Rock City Hotels.
While Organised Labour may count the discontinuation of the sale process as some form of victory, the entire issues require a broader discussion and a better understanding than the might of Organised Labour may convey.
If for nothing at all, the intended transaction affects the cumulative investment of worker’s pension funds, with the bigger potential of impacting the viability of pension funds investment.
For all workers who contribute to the SSNIT pension scheme, the biggest interest would be that the fund managers must prudently invest the contributions of subscribers in order to secure the future of workers when retirement calls.
That is why it is important that Organised Labour does not restrict itself to this particular abortive sale. As is widely known, many other assets of the scheme have been sold in the past, with the silent endorsement of labour unions.
We expect organised labour to be more proactive and also a worthy partner in supporting SSNIT in major investment initiatives that will inure to the benefit of contributors and also ensure the sustainability of the scheme, rather than acting after the fact.
The decision to reduce SSNIT’s stake in the four hotels was not taken today. It has emerged that the process started in 2019, and only stalled due to the outbreak of COVID-19.
When the process was revived post-COVID-19, it started with advertisement for a transaction advisor in two national newspapers and one international news magazine.
Subsequently, when the transaction advisor was selected, another advertisement was placed for an interested strategic investor, which was also published in the same media outlets.
How come Organised Labour was oblivious of these processes only to wake up from its slumber nearly five years later to cry foul? The action of Organised Labour in the hotels sale controversy may be lauded on the basis that it is always better late than never.
But the leadership of labour must not wake up only because of the involvement of politically exposed personalities in the trading off of important assets of the scheme. After all, Organised Labour has representation on the board of SSNIT.
Now that the hotels sale has been scrapped, stakeholders of SSNIT must collectively agree on how to handle assets, including hotels, that are said to be non-profitable and ultimately a drain on the scheme because the more such decisions delay, the more the assets devalue, leaving contributors the ultimate losers.
The point needs to be made that all stakeholders of the scheme must work in tandem to ensure its sustainability into the future.
The Trust's efforts to enrol more contributors, particularly from the informal sector, is therefore most commendable. However, these efforts must be matched with a commitment to sustainability and long-term viability.
The Trust must ensure that its investment strategies and decision-making process prioritise the interests of its beneficiaries to maintain the Trust's financial health.
Ultimately, the Tier One pension scheme is a vital component of Ghana's social security system, and its sustainability is crucial for the well-being of millions of Ghanaians. As such, all stakeholders must approach the current controversy with a sense of responsibility, recognising that the decisions of today could have far-reaching consequences for the future.
While we support reforms to sustain the Tier One pension scheme, it must be emphasised that there is the need for a mature and sensitive approach to address such issues in the future.
The Daily Graphic calls for well thought-through measures and investments that will improve the viability of the Tier One pension scheme, with all stakeholders and interested parties working together to achieve the bigger objective of the scheme.
Long live the Tier One pension scheme!