The Trades Union Congress (TUC) has described, as a ‘tragic mistake’ and ‘sad’ decision, the government’s move to seek economic support from the International Monetary Fund (IMF) to revive Ghana’s economy.
The labour union in a statement said while it appreciates the challenges facing the economy, it does not believe that going under an IMF programme is the best solution.
“It is now very obvious that the economy of Ghana is in a desperate situation. But we are of the firm view that handing over the management of the economy to the IMF is not the solution to our problems,” the TUC said.
It was of the view that an IMF programme will bring in tight economic conditions, such as a freeze on public sector employment as was the case for Ghana’s 16th programme with the fund, noting that despite the many bailouts, the Ghanaian economy continues to face challenges.
“The hardships all these IMF programmes brought on Ghanaians were enormous and needless. What we got in return was an economy still overly dependent on production and export of raw materials and import of manufactured products. Most of our productive sectors such as mining, petroleum and telecommunications are still being controlled by foreign companies.”
The Ministry of Information on Friday, July 1, 2022, announced that President Akufo-Addo had given approval for Ghana to begin engagements with the IMF for a bailout.
The TUC said it was unhappy that the government “unilaterally” agreed to seek an IMF bailout.
It reminded government of its promise for a four and seven percent pay increase for 2021 and 2022 on condition that government will not declare redundancies in the public service and that government will continue to employ young people into the public service, adding that any condition from an IMF programme that will impose needless hardship on them will be prevented.
“We would like government to note that the working people of Ghana will do whatever it takes to prevent the imposition of needless hardships on them and the good people of Ghana,” it said.
