Upper East Regional Minister, Paulina Patience Abayage announced this in her address at the regional celebration of the 2019 edition of Workers Day held in Bolgatanga under the theme, “Sustainable Pensions for all: The Role of Social Partners”. The event which is international in character, is also widely known as May Day and is celebrated annually on 1st May to recognise the valuable contributions of workers both in the formal and informal sectors, to the development of their nations.

The Regional Minister added that, under the new method for the payment of pensions, a pensioner would receive the lump sum from his or her fund managers while the Social Security and National Insurance Trust (SSNIT), pays the monthly pension benefit.

She noted that aside the mandatory SSNIT contributions, it was imperative for workers to take up the responsibility of activating additional investment schemes that were prudent enough to help cushion them during their lives after active employment so as not to be overtaken by events.

Hon. Abayage also observed that, “every country’s growth and development depends largely on the quality, effectiveness and efficiency of its labour force” and stated that, she saw all these qualities in the Ghanaian labour force. She therefore urged the labour front to continue doing their very best in their various assigned jobs as Government would continue to engage leadership of the various labour unions for mutually beneficial discussions regarding wages and better conditions of service.

The Minister who preceded her address with her own rendition of the popular Ghanaian song “Oman Be Ye Yie”, which calls on the Ghanaian to devote time and resources to the development of the motherland, remarked that successive governments had depended on the Ghanaian work force to develop the country through to this date. According to her, Government as a result gives high priority to issues relating to labour and would do everything to ensure that, labour got whatever was due be it wages, allowances or compensations.

Madam Abayage herself, a former labour union leader, said pension schemes in Ghana had evolved over the years since the colonial era and stressed that, there will be the need to continue revising the notes on pensions in as far as times and events keep changing. She recalled that the first pension scheme was introduced in Ghana in 1946, then came the CAP 30 scheme in the 1950s and 1960s and this was followed by the Social Security Act of 1965 leading to the establishment of SSNIT in 1972. She noted that all these changes were premised on the fact that, governments over the years, wanted to expand the coverage of the schemes and also, improve the entitlements of retirees.

Subsequently in 2007, government through engagements with critical stakeholders, came up with yet another revised scheme with an all-encompassing objective that was to among other things, provide better coverage in retirement while extending taking on board, informal sector workers. As a result therefore, the National Pension Act 2008 came into being. It is otherwise referred to as the Three-Tier Pension and regulated by the National Pensions Regulatory Authority [NPRA].

Madam Abayage explained that, the Tier Two for instance is a work-based pension scheme, mandatory for all employees but is privately managed to provide a lump sum to contributions upon retirement. Meanwhile, the third-tier was the newest addition and provides for a voluntary provident fund and personal pension scheme with tax benefits for employees who decide to contribute for their pension beyond what the law mandates.

She said she was aware that, organised labour has raised issues with portions of the schemes, sustainability and the method used by SSNIT for the computation, but pledged that appropriate remedies were being sought by the stakeholders. “I know government is working with SSNIT and the NPRA to resolve all issues concerning pensions including the unification of all schemes in Ghana”, the Minister stated.

Upper East Regional Secretary of the Trades Union Congress [TUC], Mr. Augustine Apambila read a speech on behalf of the TUC Secretary-General and noted that several thousands of workers today were paid salaries below the National Minimum Wage which is pegged at 270.00 Ghana Cedis per month. He added that several thousands more had been working as casual employees without employment contracts among many other labour infractions.

According to Mr. Apambila, these unfair labour practices were being perpetuated owing to the fact some employers know too well that state institutions such as the Labour Commission, Factories Inspectorate Department and the Labour Department, vested with the authority to check on such bad deeds, were under-resourced and thus, incapacitated to execute their mandate. He thus appealed to government to take drastic steps to equip these agencies with the required logistics, financial and human resources so as to effectively carry out their work to the relief of the Ghanaian worker.

Before converging at the Bolgatanga Jubilee Park for the celebration-proper, several hundreds of workers and labour union members took a march through some principal streets of the regional capital, Bolgatanga waving placards some of which read; “Pay Us Sustainable Salary”, “Retirement Is Inevitable, Plan Today”, “Employers In The Informal Sector Should Pay SSNIT For Their Employees” and “GWCL – Lets Preserve Our Water Bodies” among others.

The last May Day celebration in the Upper East Region, the 2018 edition was hosted by the Bongo District.