TIG Post

Tag: ILO

  • ILO’s projection about us will never come to pass – SSNIT

    ILO’s projection about us will never come to pass – SSNIT

    The Social Security and National Insurance Trust (SSNIT) has responded to the study by the International Labour Organization (ILO) projecting a complete depletion of SSNIT’s reserve by 2036, calling it a prediction.

    Joseph Poku, SSNIT’s Chief Actuary, stated that the study is conducted every three years as required by law, providing an overview of the scheme’s status, assets, and liabilities.

    He added that it also offers management ideas on measures to ensure the scheme’s sustainability.

    During a press conference on Monday, Mr. Poku cited previous projections, including a 2011 report that predicted SSNIT would be unable to pay funds by 2019, to emphasize that such forecasts should be taken with caution.

    “The recommendations are not going to happen at all costs, that’s not what it is. So it gives you an idea that based on these assumptions, it’s likely to happen but there is no certainty. So, in 2011, it was projected that the scheme reserved will run or will be depleted.”

    “The report (2011) says, among other things, that if contribution rates were not increased in the future, the annual expenditure on benefits and registration would exceed income from contributions and the funds from 2019 would just tank,” he said.

    “What it said was that by 2019, we’re not going to have enough money to pay benefits. We are in 2024 and we have never defaulted in payments or benefits from 2019 up to date. So in this report, it’s not different from the reports that we’ve obtained over the years. Like I said, it gives you an idea of where you are going as a scheme, and then you take proactive measures to steer off, if there is any danger ahead of you,” Mr Poku explained.

    Following an actuarial valuation study of the Social Security and National Insurance Trusts (SSNIT) viability, the International Labour Organization (ILO) projected a complete depletion of SSNIT’s reserve by 2036.

    ILO’s study indicated that total income, including contributions, investment income, and other income, would no longer be sufficient to cover annual expenditures, including benefit payments to pensioners, by 2029.

    “Starting in 2029, total income (contributions, investment income and other income) is no longer sufficient to pay for annual expenditures. The reserve starts to decrease. During the year 2036, the reserve drops to zero” the research emphasised.

    SSNIT will rely solely on its reserves to meet payment demands, leading to a gradual depletion process until it reaches zero by 2036, as indicated by the valuation report.

    Mr. Poku, while defending SSNIT’s sustainability, emphasized that there was no need for alarm. He acknowledged that reports over the years have consistently emphasized the necessity of increasing contribution rates.

    “Ladies and gentlemen, it doesn’t count easy to increase contribution rates. It means the law has to be changed, we need to engage stakeholders, we have the employers, we have the workers as a group, we have our regulator, and the living parliament and government. So it goes through a process, and that process is a bit long,” Mr Poku said.

    In an earlier press statement, SSNIT assured Ghanaians that the scheme is not solely funded by reserves and that they have sufficient funds to pay benefits owed to members.

    “There has been steady growth in contributions. This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme.”

    “Investment income has been healthy and would offset any unexpected deficit that may arise…The Trust has never missed any pension payment since 1991, when the pension scheme was introduced.”

    SSNIT said the Government of Ghana continued to pay contributions on behalf of its workers, and that “modalities are in place to service the outstanding contributions”.

    The Management reassured the public that it would “continue to ensure prudent management of the Fund to meet its benefits payment obligations beyond 2036.”

  • SSNIT financial reserves may be depleted by 2036 – ILO warns

    SSNIT financial reserves may be depleted by 2036 – ILO warns

    The International Labour Organisation (ILO) has issued a warning regarding the sustainability of Ghana’s Social Security and National Insurance Trusts (SSNIT), stating that its funds may be depleted by 2036.

    According to a report on myjoyonline.com, a recent study has revealed that SSNIT’s income will not be sufficient to cover its yearly expenses starting in 2029. This shortfall is projected to result in a gradual depletion of its reserves over time.

    By the year 2036, the reserve ratio, which measures the ratio of reserves to total expenditures for the year, is anticipated to decline from 3.4 to zero.

    “Starting in 2029, total income (contributions, investment income and other income) is no longer sufficient to pay for annual expenditures.

    “The reserve starts to decrease. During the year 2036, the reserve drops to zero,” the report stated.

    The primary cause of this situation is the government’s tardiness in fulfilling its obligations.

    As of December 2021, the government’s debt to SSNIT stood at GH¢9.35 billion, with GH¢6.9 billion attributed to late payments.

    This delay in government contributions has resulted in a 1.3 percent reduction in SSNIT’s investment returns.

    The report indicates that the government’s failure to meet its financial responsibilities on time has shifted a considerable financial burden onto the private sector.

    “Past experience suggests that, by not paying on time and not paying the interest income on delayed contributions, the government shifts an important part of the cost to the private sector,” the study stated.

  • Climate change may reduce working hours – ILO

    Climate change may reduce working hours – ILO

    In the next six years, Africa may witness a reduction of more than two hours in working hours due to heat stress caused by climate change, posing significant challenges to the labor market and overall economies.

    This global phenomenon is expected to impact workable hours in various regions, rendering some areas too hot for productive work.

    During a recent presentation on climate change and just-transition at a media sensitization program in Accra, the National Project Coordinator of the International Labour Organisation (ILO), Gideon Mankralo, highlighted the worsening global situation.

    He predicted that by 2030, rising temperatures could lead to work restrictions, with authorities in some countries, such as Ghana, considering measures like prohibiting work between 11 a.m. and 1 p.m.

    Mr. Mankralo emphasized the severe repercussions on industries like agriculture and construction, stressing the urgency of implementing the National Green Jobs Strategy to address the imminent challenge.

    “So, by 2030, temperatures are going to rise so high that we cannot go to work in the afternoons, and the Ministry of Labour, TUC, workers will come out and say for Ghana between 11 a.m. to 1 p.m. nobody should come out to work,” he said.

    He urged the promotion of green jobs, emphasizing the connection between 1.2 billion jobs and ecosystem services, warning that climate change effects could lead to substantial job losses, such as 86 million jobs if fisheries collapsed.

    The workshop, organized by the Ministry of Employment and Labour Relations (MELR), aimed to enhance journalists’ understanding of the Green and Circular economy. It emphasized the crucial role of media in promoting and creating green jobs.

    The National Green Jobs strategy, initiated in 2016, aligns with the country’s commitment to National Determined Contributions (NDCs) for climate change mitigation and adaptation.

    Gloria Bortele Noi, the Director of Policy Planning, Monitoring, and Evaluation at MELR, stressed the importance of citizen awareness about climate change. She called for media involvement in educating the public on climate change issues and the necessity for a just transition. Ms. Noi emphasized that creating green job opportunities is a shared responsibility, requiring policy alignment, coordination, green skills development, and support for green enterprises.

  • G20 Labour and Employment Ministers urged to embrace international solidarity

    G20 Labour and Employment Ministers urged to embrace international solidarity

    The Director-General of the International Labour Organization (ILO), Gilbert F. Houngbo, urged G20 Labour and Employment Ministers to take decisive action on several critical issues.

    He emphasized the need to bridge skills gaps, bolster social protection systems, and adopt sustainable financing methods for employment and social protection policies.

    In addition, Mr. Houngbo advocated for addressing the widening disparities in the global labor market and reducing inequalities. He made these calls during the G20 Labour and Employment Ministers’ meeting, which focused on sustainable funding for social protection, extending social security to workers in the gig and platform economies, and tackling the global skills gap.

    The meeting, hosted by India in Indore, centered around three key topics: addressing global skills gaps, expanding social protection to platform and gig workers, and establishing sustainable financing for national social protection systems.

    Mr. Houngbo expressed concern over the deepening global employment divide, especially in the face of various global challenges and uncertainties. He stressed that more resources need to be mobilized globally to promote social justice. The UN Global Accelerator on Jobs and Social Protection for Just Transitions was cited as a vital initiative in generating the required technical and financial support. Mr. Houngbo proposed that such endeavors should be part of broader reforms in the international financial architecture to make more resources available for achieving the Sustainable Development Goals (SDGs).

    The Director-General discussed the Antalya Youth target, aiming to reduce the proportion of young people (15%) at risk of permanent labor market exclusion by 2025. He highlighted the significance of promoting more and better employment for the youth, particularly to tackle gender inequality. This could be achieved by investing in economic sectors with high youth employment potential and enhancing the quality of employment to encourage greater participation in the labor market.

    Mr. Houngbo emphasized the importance of investing in Technical and Vocational Education and Training (TVET) and quality apprenticeship programs to support disadvantaged youth. Combining active labor market policies with income support was also recommended to help reach those in need.

    During the meeting, the Ministers discussed strategies to address skills gaps, aiming to boost productivity and wages while reducing workforce turnover. They also emphasized the need for a standardized language on skills and qualifications to enable cross-country comparability and mutual recognition of skills.

  • Ayensuano District to sanction parents engaged in child labor

    Ayensuano District to sanction parents engaged in child labor

    The Assembly, Ayensuano district has indicated that it is determined to pursue legal action against parents who subject their kids to the menace of child labor as a result of its vehement opposition to it in the area.

    Children engaged in hard labour is prevalent in rural areas especially in the farming communities.

    According to the United Nations, more than 160 million children, some as young as five, are engaged in child labour across the world.

    The International Labour Organisation (ILO) data further shows that more than one in every four children, aged between five and 17, were engaged in labour that was considered detrimental to their health and development in least developed countries.

    In Ghana, there is an average of 21 per cent of children, aged five to 17 years, involved in child labour, with 14 per cent classified as engaged in hazardous forms of labour.

    The District Chief Executive (DCE) of Ayensuano in the Eastern Region, Josephine Awuku Ansah Inkoom, has established that the Assembly is bent on eradicating the menace by apprehending and prosecuting parents who engage children less than 18 years in hard labour.

    The DCE, who was speaking at the World International Day Against Child Labour in Ntowkrom near Kraboa Coatal, cautioned parents against the act.

    She revealed that child labour is rife in the area hence the Assembly’s move to establish a court to deal with the situation.

    “Child labour is common in Ayensuano; you go to the market and you see children under 18 selling on behalf of their parents.

    “Sometimes you visit schools and find that the classrooms are virtually empty because the children had gone to the farm with the patents,” she restarted.

    DCE Ansah Inkoom expounded that the situation is a threat and the Assembly is ready to crack the whip on parents found culpable.

    Deputy Employment and Labour Relations Minister Bright Wereko Brobbey likewise retreated to parents to desist from engaging underaged children in hard labour as it is against the law.

    He underscored the need for parents to prioritize child education instead of abusing the rights of their children.

  • ILO partners ATRN to train 40 artisans in digital marketing

    ILO partners ATRN to train 40 artisans in digital marketing

    Approximately 40 traditional caterers and kente weavers in the Ashanti region have recently undergone training in social media and digital marketing.

    The training program was organized by the Africa Tourism Research Network (ATRN) and the International Labour Organization (ILO), recognizing the significant role that digitization plays in the tourism and hospitality sectors.

    The aim of this initiative is to enhance the informal sector and assist artisans in leveraging the digital economy to create better employment opportunities.

    During a four-day workshop, Emmanuel Frimpong, President of ATRN, emphasized the importance of promoting craftsmanship as it plays a vital role in generating decent jobs for the youth. Frimpong encouraged handicraft workers to harness the advantages of social media marketing to enhance the creative arts sector.

    Frederick Adjei-Rudolph, Regional Director of the Ghana Tourism Authority, highlighted the participants’ need to acknowledge and embrace the role of digitization and social media in their work.

    This recognition is crucial for staying relevant and maximizing the benefits provided by these digital platforms.

    He, however, urged them to take advantage of the workshop to improve on their work while at the same time benefiting from the opportunities available on social media platforms.

    He stressed “if you sit back and watch without taking advantage of digitisation, your jobs will be gone in no time.”

    On his part, Frank Kwasi Adetor, the National Project Coordinator of ILO’s Global Program on Skills and Lifelong Learning reiterated the pivotal role digital marketing and social media skills play in promoting and sustaining businesses.

    He admonished the two trade associations to take advantage of the training by imparting the knowledge and skills acquired to others.

    “You can only succeed in transcending the borders of Ghana by conforming to and upholding international standards in your business operations,” Mr. Adetor further advised the participants.

    The training workshop forms part of the Global Program on Skills and Lifelong Learning/SKILL UP Ghana Project. It is an ILO initiative in collaboration with the Commission for Technical and Vocational Education and Training and funded by the Norwegian Agency for Development Cooperation.