In a plea to avert the imminent collapse of the Ghana Railways Company Limited (GRCL), the Ghana Railway Workers Union is begging President Nana Addo Dankwa Akufo-Addo to intervene and rescue the state-owned railway company from going the way of other defunct state-owned entities. With over 1,000 employees and a series of severe operational obstacles, the company’s predicament necessitates urgent attention.
At a press conference held in Takoradi last Tuesday, the General Secretary of the Ghana Railway Workers Union, Godwill Ntarmah, highlighted the pressing challenges that have thrust the GRCL to the brink of financial crisis. The existing narrow gauge rail line, which is in a state of disrepair, coupled with antiquated rolling stock, has resulted in frequent derailments that further exacerbate the company’s fiscal woes.
Ntarmah asserted, “The above challenges have resulted in serious financial constraints which easily qualify the company as a Highly Indebted Poor Company (HIPC).” The gravity of the situation has prompted the Railway Workers Union to reach out to President Akufo-Addo, seeking his immediate attention to this critical issue.
Efforts to engage President Akufo-Addo regarding the company’s difficulties, including its operational status as a Limited Liability Company without shareholders, have thus far been unsuccessful. The union calls for an audience with the President to discuss strategies for rescuing the company and preserving its future.
Mr. Ntarmah refuted the notion that the GRCL should be self-sufficient due to its limited liability company status. He emphasized that given the array of challenges outlined, it is implausible for the company to generate sufficient revenue to sustain itself. As a result, the workers’ union is left with no alternative but to address the public through the press, urging President Akufo-Addo’s intervention to prevent the complete collapse of the GRCL.
Among the union’s concerns expressed during the press conference is the non-payment of three-month salary arrears amounting to GH¢6 million. The financial burdens on railway workers have reached an untenable level, largely due to operational challenges that have plunged the company into deep debt.
The workers’ grievances extend to over a year’s unpaid Social Security and National Insurance Trust (SSNIT) and Tier Two contributions. Ntarmah highlighted the frustrations and disillusionment among railway workers regarding these outstanding payments, cautioning that if the salary arrears remain unpaid, they may resort to collective action.
Ntarmah underscored, “As we speak, salaries go into three or four months arrears before some efforts are made to affect some payments. Again, SSNIT payments are in arrears from October 2022 to date, which has compelled SSNIT to take GRCL to court to enforce payments.”
Ghana Railways Company Limited also faces debt with GCB Bank amounting to millions of cedis, while workers’ Tier Two payments have remained unsettled since May 2022. Additionally, the company has failed to remit workers’ deductions meant for their credit unions, further exacerbating the financial strain on employees.
The union’s demands also encompass resolving the fate of the GRCL staff retrenched in 2006. These multifaceted challenges paint a dire picture for the future of the railway company, urging swift and decisive action from the government to safeguard its existence and restore financial stability.
