GCNet commits to pay redundancy compensation but files an appeal in court

Management of Ghana Community Network Services Limited (GCNet), says it is prepared to pay redundancy compensation to its laid-off workers in accordance with legal processes.

Despite pledging to pay redundancy compensation to its laid-off workers, GCNet noted that its request to file an appeal challenging the arbitral award by a panel of the National Labour Commission (NLC) is not because the company wants to deny workers their compensation, but rather to ensure that the right procedures were followed in line with the Labour Act.

Bearing in mind that the bill for the redundancy compensation payment would have to be submitted to the government for a refund as a result of the abrogation of its trade services contract with GCNet, the compensation has to be properly negotiated and administered, the company said.

Mr Alwin Hoegerle, Managing Director of GCNET, explained that the anomalies detected in basing the compensation calculation on the company’s Human Resource policy Manual, for which the management sent the matter to the NLC and the High Court, had to be rectified in order not to make it difficult for the government to honour its obligation in settling the bill.

He said although the Accra High Cout denied management’s application to set aside the NLC arbitral award compelling the company to pay redundancy compensation without negotiaton with a registered trade union, management was filing an appeal against the decision which ignored the claim of incapacity of the Welfare Staff Association to negotiate on behalf of the workers.

He gave the assurance that the affected workers of their compensation, adding that “we are eager to complete the adjudication process so that we can execute the compensation payments in an appropriate manner.”

Disagreement over arrangements for the payment of compensation, including the capacity of the Welfare Staff Association to negotiate on behalf of some 148 affected workers, led the management and the workers to the Labour Commission, following which the Commission’s arbitration panel, in its September 14, 2020 award, ruled that the provisions in the company’s Human Resource Policy Manual should be used in paying the compensation to the redundant workers.

However, the management is challenging the award, since the involvement of the association, which is not a registered union and does not have a collective bargaining certificate, renders the use of the manual for redundancy compensation negotiation, illegal as it contravenes the provisions of the Labour Act on redundancy.

Thereafter, the remaining 50 workers embarked on an industrial action, but the Labour Commission, declared that action as illegal, and accordingly directed them to call off the strike, which they adhered.

The redundancy exercise was triggered by the government’s abrupt abrogation of its trade facilitation service contract with GCNet, effective May 31, 2020.