SSNIT hotels: Stop the sales – Ghana Federation of Labour

Business Finance


The Ghana Federation of Labour (GFL) has firmly opposed the sale of the Social Security and National Insurance Trust (SSNIT) hotels, which include Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort, to a strategic investor.

The GFL insists that their opposition is not politically motivated but is focused on the overall welfare of workers.

Abraham Koomson, the Secretary-General of the GFL, disputes SSNIT’s claims that the hotels are incurring losses.

He warned that if SSNIT attempts to proceed with the sale despite the National Pension Regulatory Authority’s directive to halt it, organized labour will stage a massive protest.

He said if SSNIT feels the managers of the hotels are incompetent, they should sack them and hire new ones with targets to better manage the hotels.

However, Kofi Bosompem Osafo-Maafo, the Director-General of SSNIT, explained that the decision to sell 60 percent of its shares in the four hotels to a strategic partner is due to their consistent
losses.

He noted, “Almost all of our hotels are not profitable. Labadi Beach Hotel, for instance, does not make a significant profit, and returns are below expectations. They haven’t paid us any dividends, except for Labadi Beach Resort, which only started paying dividends in the last two years.”

Despite Labadi Beach Hotel’s recent profitability, Mr. Osafo-Maafo justified its inclusion in the sale, citing SSNIT’s goal to optimize overall returns.

He argued that the current profits from the hotel were insufficient.

But Mr. Koomson further questioned why SSNIT is determined to sell the hotels when workers are against it.

He called on SSNIT to replace the management of the hotels if they are consistently recording losses and to hire competent managers.

He emphasized that this is not the time to sell the hotels, especially when SSNIT is collecting premiums from workers and voluntary contributors.

He called for a change in management.

Mr. Koomson made these remarks on Accra-based Joy FM on Monday, July 8,
2024.

Source: Ghana Web