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The management of Ghana Community Network Services Limited (GCNet) says it is ready to pay severance pay to its dismissed workers in accordance with legal procedures.
According to management, she is challenging the arbitration award by a panel of the National Labor Commission (NLC) not because the company wants to deny workers’ compensation, but wants to ensure that the right procedures are followed in accordance with the labor law.
With the understanding that the bill for severance pay is expected to be submitted to the government for reimbursement following the termination of its commercial services contract with GCNet, the compensation must be properly negotiated and administered, the company said.
GCNET Chief Executive Officer Mr. Alwin Hoegerle explained that the anomalies detected in basing the compensation calculation on the company’s human resources policy manual, for which management referred the matter to the NLC and the High Court, must be rectified so as not to make it difficult for the government to honor its obligation to settle the bill.
He said that although Accra High Cout rejected management’s request to overturn the NLC arbitration award requiring the company to pay severance pay without negotiating with a registered union, management is appealing the decision. who ignored the allegation of the incapacity of the Welfare Staff Association to negotiate on behalf of the workers.
He assured the affected workers of their compensation, adding that “we look forward to completing the arbitration process so that we can properly execute the compensation payments.”
A disagreement over the terms of payment of compensation, including the ability of the Social Protection Staff Association to negotiate on behalf of 148 affected workers, led management and workers to the Labor Commission.
This comes after the Commission’s arbitration panel, in its September 14, 2020 award, ruled that provisions in the company’s human resources policy manual should be used to pay compensation for laid-off workers.
However, management is contesting the sentence because the involvement of the association, which is not a registered union and does not have a collective bargaining certificate, makes the use of the severance pay negotiation manual illegal because it contravenes the provisions of the Labor Law on dismissals.
Subsequently, the remaining 50 workers engaged in industrial action, but the Labor Commission declared this action illegal and therefore ordered them to end the strike, to which they joined.
The layoff exercise was triggered by the government’s abrupt termination of its trade facilitation service contract with GCNet, effective May 31, 2020.
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