The company is praying the court to set aside the award
The company is praying the court to set aside the award
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The 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.

According to the  management, it is challenging the arbitral award by a panel of the  National Labour Commission (NLC) not because the company wants to deny the workers compensation but wants to ensure that the right procedures are 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 says.

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Mr Alwin Hoegerle, Managing Director of GCNET, explains 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, have to be rectified so as not to make it difficult for the government to honour its obligation in settling the bill.

He said although 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 is 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 assured 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.


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ADR Daily is a specialized news portal with a focus on providing authentic news, information and research analysis on Appropriate Dispute Resolution (ADR), Human Resource Management (HRM) and Industrial Relations Management (IRM) in Ghana and beyond. This platform serves as an information resource base for the progress of the ADR, HRM and IRM industries, and seeks to promote professionalism in ADR practice by supporting a network of ADR professionals within and across nations and continents. ADR Daily keenly encourages the mass adoption of ADR mechanisms, particularly negotiation, mediation and arbitration for the resolution of disputes in all spheres, through the publication of industry news and information, as well as by deploying innovative awareness creation engagements.