Twelve major labour groups have demanded an immediate transfer of their Tier-2 pension contributions to private fund managers.

The Forum of Public Sector Labour Unions in Ghana says the government should brace for a nationwide industrial action in November which could cripple the public sector if it fails to comply with its demands.

Addressing a news conference in Accra, Chairman of the Forum, Dr Isaac Bampoe accused government of back-tracking on a mutually agreed decision that payment of the 5 percent Tier-2 funds would be made by April 1.

“As at today, the government has failed to abide by these obligations as stated in the out of court consent judgment accepted by the High Court that the employer shall ensure that the 5 percent of Tier-2 monthly deductions are made by the Controller and Accountant General,” he said.

The Forum, which is made up of 12 labour groups, he said, has been calling on government to pay the Tier-2 funds to fund managers of its members for more than five years now.

The labour groups include the Ghana Medical Association (GMA), the Ghana Physician Assistants Association (GPAA), the Government Hospital Pharmacists Association (GHOPSA), and the Ghana Association of Certified Registered Anaesthetists (GRCRA).

The rest are the Ghana National Association of Teachers (GNAT), the Teachers and Educational Workers Union (TEWU), the National Association of Graduate Teachers (NAGRAT) and the Coalition of Concerned Teachers (CCT), the Judicial Service Staff Association of Ghana (JUSSAG) and the Civil and Local Government Staff Association of Ghana (CLOGSAG).

Negotiations have been rancorous resulting in lawsuits from both the Forum and government, with each accusing the other of “unfairness.”

Employment Minister, Haruna Iddrisu had decried the manner the labour groups were handling the issue in October 2010, adding government had no interest withholding the Tier-2 funds of the workers.

The two parties were later to agree on an out-of-court settlement which decision was accepted by the Accra High Court as binding.

Under the agreement, the government which is the employer would ensure that the Controller and Accountant General makes payment to the 12 groups before April 1, but the Forum said at its press conference today this has not been done.

Dr Bampoe said the Forum has tried on several occasions to compel government to fulfill its obligations under the agreement but they have not been successful.

“The deafening silence on the part of government concerning the transfer of the funds is clearly in contravention of the court judgment,” he said, adding they are disappointed.

Government amended some provisions of the National Pension Act, giving it the power to postpone payment of the Tier-2 funds, but the Forum said it was not going to accept further amendments.

“The fact still remains that for those who fall under the National Pension Act, that is those who were below 50 years as at January 1, 2010, cumulative contributions from January 1, 2010, have not been transferred to the constitutional banks of license schemes of the Forum,” Dr Bampoe said.

The delay in the transfer of funds for almost seven years, he said is going to affect “adversely the level of a lump sum or gratuity a retired officer is likely to receive under the second Tier.”

He urged the government to make payment of the Tier-2 funds to the labour groups by 15 November 2016 in compliance with its obligation under the settlement judgment else they would abandon their work.