Ghana ADB: Union Demands Job Safeguards Amid Share Sale Plans

• The Professional and Managerial Staff Union (PMSU) of ADB is concerned about potential job losses from proposed share disposals.
• PMSU Chairman James Obeng-Gyan called for recapitalisation and stronger governance as alternatives to ownership changes.
• The union demands transparency, independent valuation, and protection of national interests in any strategic transactions.
• Concerns were raised regarding the Bank of Ghana's Prompt Corrective Action measures and potential staff rationalisation.
• PMSU insists that any restructuring must be lawful, transparent, and involve consultation with organized labor.

The union firmly asserts that safeguarding the institution's survival is intrinsically linked to guaranteeing sustainable employment, viewing these objectives as mutually reinforcing.

The Professional and Managerial Staff Union (PMSU) of the Agricultural Development Bank PLC (ADB) in Ghana has voiced significant apprehension regarding potential job losses stemming from proposed share disposals involving the institution. During its National Executive Council meeting, PMSU Chairman James Obeng-Gyan articulated the union's stance, emphasizing the critical need for employee protection and the preservation of ADB's foundational mandate to support Ghana's agriculture, agribusiness, and rural communities. This concern arises amidst reports of the Bank of Ghana's remaining 13.45% shareholding being considered for sale, alongside indications of a possible divestment of the government's substantial 83.52% interest in the bank.

While the PMSU does not inherently oppose strategic transactions, it insists on stringent conditions for any such ownership changes. The union demands complete transparency throughout the process, independent valuation of the shares, and clear mechanisms to safeguard the national interest. Obeng-Gyan specifically called upon the government, the Bank of Ghana, and ADB's Board and management to prioritize robust recapitalisation efforts, strengthen governance structures, and focus on institutional recovery as primary objectives.

Further compounding the union's concerns are the potential ramifications of the Bank of Ghana’s Prompt Corrective Action measures and any proposed staff rationalisation within ADB. The PMSU chairman stressed that any restructuring initiatives must adhere strictly to legal frameworks, be conducted with utmost transparency, and involve comprehensive consultation with organised labour. He firmly argued against employees bearing the consequences of what he termed "longstanding institutional problems" or "historical managerial failures," advocating instead for a thorough examination of the decisions that led to such issues.

Beyond the broader restructuring, the PMSU also highlighted several outstanding staff concerns requiring immediate attention. These include overdue promotions, the full implementation of agreed salary structures, provisions for pensioners’ medical care, clarity on performance targets, and improved conditions for long-serving outsourced and contract workers. Local Union Chairman Francis Xavier Kongkuah reinforced these sentiments, urging management to ensure staff welfare, fairness, and transparency in the ongoing Staff Talent Optimisation exercise, and to resolve lingering grievances and delayed performance appraisal outcomes that negatively impact morale.

In seeking a path forward, the PMSU has put forth alternatives to outright ownership changes, advocating for adequate recapitalisation as a means to bolster the bank's stability without compromising its development mandate. Obeng-Gyan outlined a comprehensive strategy for ADB's recovery, which includes strengthening risk management protocols, improving loan recovery mechanisms, accelerating digital transformation initiatives, and enhancing overall operational efficiency. The union firmly asserts that safeguarding the institution's survival is intrinsically linked to guaranteeing sustainable employment, viewing these objectives as mutually reinforcing.

Obeng-Gyan underscored that protecting employees and securing the bank’s future are presented as complementary goals, stating that the union defends the institution precisely because its survival guarantees sustainable jobs. He concluded by urging a collaborative approach involving the government, regulatory bodies, ADB management, and organised labour. The ultimate aim is to forge a financially sustainable Agricultural Development Bank that not only protects the livelihoods of its workforce but also effectively fulfills its vital national development mandate.

Lawyers advising on M&A or corporate restructuring in Ghana's banking sector, particularly involving ADB, must consider the Professional and Managerial Staff Union's demands for employee safeguards, transparency, and adherence to lawful processes during any proposed share sale or staff rationalization. Compliance officers should monitor potential Bank of Ghana Prompt Corrective Actions and ensure labor law compliance.

Source: Original reporting based on Joy Business coverage.