Management of ISTC blames workers’ provident fund contributions arrears on COVID-19

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The Management of Intercity STC Coaches has responded to concerns raised by its workers in a petition to the Board regarding the appointment of a new Deputy Managing Director.

The workers petitioned the Board to rescind the decision to appoint a third Deputy Managing Director. They contended that the dwindling fleet of buses and other challenges facing the company should rather be prioritised.

In response, the Mangement in a press release dated June 4, 2024, said all the issues raised in the petition are being addressed.

“Arrears on Workers Provident Contributions have dated from 2011 (i.e., fourteen years ago). The arrears have progressively been reduced to four years. (This four-year arrears have been largely due to the Covid-19 difficult operating environment),” the Head of Public Relations, Anita Abaka-Sika wrote.

Touching on contributions to Social Security and National Insurance Trust (SSNIT) on behalf of staff, the release said “SSNIT arrears have dated from 2013. STC is now current on monthly payments. The arrears have also been reduced to a little above GHC4million.”

“The STC bus fleet are aged nine (9) years for the Scania fleet and five (5) years for the Daewoo fleet. By the norms of Intercity (long distance travel) standards they are overage, hence the frequent and prolonged visits to the workshop. They are due to be replaced. The company is currently making every effort to replace the entire fleet,” the ISTC management explained.

It said, “Two delegations are leaving shortly for China and Turkey to conclude arrangements for new fleet.”

In respect of the company’s debt situation, the press release indicated that “The STC debt to ADB has been reduced from GHC140,000.00 to GHC8OMillion. STC pays GHC2Million monthly to ADB.”

It announced that “The ISTC Board will meet with the Union leaders on Thursday, June 6, 2024 to resolve the workers anxieties over the new appointment, which has occasioned the petition.”

On June 3, a visit by 3news to the STC yard near Awudome cemetery revealed that staff had barricaded the office of the Deputy Managing Director and wrapped the entrance with red bands.

Notices have also been pasted at various points in the yard.

Related Article:

Staff of STC kick against appointment of Deputy Managing Director | 3News