By Nadia Ntiamoah
The Professional and Managerial Staff Union (PMSU) of Agricultural Development Bank (ADB) PLC has raised concerns over proposed share disposals involving the bank, warning that changes in ownership and possible staff restructuring could threaten jobs and weaken the institution’s agricultural development mandate.
The union is calling on the government, the Bank of Ghana, ADB’s Board and management to prioritise recapitalisation, corporate governance reforms and institutional recovery, arguing that the bank’s future must not be determined solely by immediate commercial considerations.
Speaking at a National Executive Council meeting of the PMSU and the ADB Local Union, the union’s national chairman, James Obeng-Gyan, said the ongoing discussions about the bank’s ownership and financial position had created uncertainty among workers who fear that restructuring could result in job losses.
The meeting was held under the theme, “Safeguarding ADB’s Institutional Sustainability and Jobs in the Fulfilment of Its National Development Mandate.”
Obeng-Gyan stressed that ADB occupies a strategic position in Ghana’s financial sector because of its role in supporting agriculture, agribusinesses, rural communities and the wider national economy.
He argued that any decision affecting the bank must consider not only its financial performance but also its developmental responsibilities and the livelihoods of employees whose work supports its operations.
Union Questions Proposed Disposal of Government Shares
The PMSU chairman expressed concern over reports concerning the proposed divestiture of the Bank of Ghana’s remaining 13.45 per cent shareholding in ADB, alongside indications of a possible disposal of the government’s reported 83.52 per cent interest.
The proposals, according to the union, require careful public scrutiny because of their potential implications for the bank’s ownership structure, strategic direction and workforce.
Obeng-Gyan clarified that the union was not opposed to strategic transactions involving the bank. However, he insisted that any such move must be transparent, supported by an independent valuation and guided by safeguards that protect the national interest.
The union wants the relevant authorities to explain the objectives of the proposed transactions and demonstrate how they would contribute to ADB’s long-term sustainability.
Its concerns centre on whether changes in ownership could affect the bank’s capacity to finance agricultural production, support agribusinesses and provide financial services to rural communities.
The PMSU has therefore urged the government and other stakeholders to ensure that the process does not undermine the institution’s core mandate or expose employees to avoidable uncertainty.
PMSU Pushes Recapitalisation Over Ownership Changes
Rather than relying primarily on ownership changes, Obeng-Gyan urged the government to consider adequate recapitalisation as a sustainable means of strengthening the bank’s financial position.
He maintained that ADB needs a comprehensive recovery strategy that addresses its underlying operational and financial challenges while preserving its role in national development.
Among the measures he identified were stronger risk management, improved loan recovery, digital transformation, greater operational efficiency and effective corporate governance.
According to the union chairman, these reforms would help improve the bank’s financial performance and strengthen its ability to serve farmers, agricultural businesses and other customers.
He argued that the institution’s long-term viability should be assessed in terms of its ability to combine financial sustainability with its public-interest responsibilities.
The union’s position is that recapitalisation and institutional reforms should be considered carefully before decisions are taken that could fundamentally alter the bank’s ownership or operational structure.
Staff Rationalisation Raises Fresh Concerns
Beyond the proposed share disposals, the union is worried about the potential impact of the Bank of Ghana’s Prompt Corrective Action measures and possible staff rationalisation.
Obeng-Gyan insisted that any restructuring affecting employees must comply with the law, follow transparent procedures and involve consultation with organised labour.
He cautioned against making workers bear the consequences of historical institutional challenges without examining the management decisions and circumstances that contributed to those difficulties.
“Let us strengthen the foundations of ADB rather than make its employees the convenient casualties of historical managerial failures,” he appealed.
The statement reflects the union’s concern that employees could face job insecurity as the bank responds to regulatory requirements and considers measures to improve its performance.
However, the union’s concerns do not establish that a final decision has been taken to dismiss staff. The specific scale, timing and terms of any proposed rationalisation were not provided in the statement.
The PMSU is demanding assurances that any restructuring will be fair, properly justified and implemented through an agreed process that respects workers’ rights.
Outstanding Staff Grievances Add to Tensions
Obeng-Gyan also called on ADB management to address outstanding staff-related concerns, including promotions, implementation of the salary structure, medical care for pensioners, performance targets and the employment conditions of long-serving outsourced and contract workers.
He said resolving these issues was necessary to strengthen staff confidence and improve relations between management and organised labour.
The union believes that uncertainty over employment, remuneration and career progression could undermine morale at a time when the bank requires cooperation from its workforce to implement reforms.
It has therefore urged management to address existing grievances alongside broader discussions about recapitalisation, governance and the bank’s future ownership.
Local Union Demands Fairness in Staff Optimisation Exercise
The ADB Local Union chairman, Francis Xavier Kongkuah, also called on management to protect staff welfare, promote industrial harmony and ensure fairness in the ongoing Staff Talent Optimisation exercise.
Kongkuah stressed the need for transparency in the process and urged management to resolve outstanding grievances and delays in communicating performance appraisal outcomes.
He warned that prolonged delays in addressing employee concerns could weaken staff morale and undermine confidence in management’s decisions.
He also welcomed plans for a two-day workshop aimed at improving engagement between management and labour, describing stronger communication as important to resolving disagreements and maintaining a stable working environment.
The union’s position is that institutional reforms must be accompanied by credible engagement with employees, particularly where proposed changes could affect their jobs and conditions of service.
ADB’s Development Mandate at Stake
The debate over ADB’s future extends beyond the immediate concerns of its employees to the bank’s historical role in supporting agriculture and related economic activities.
Agricultural financing remains important to farmers and agribusinesses that require capital to purchase inputs, invest in equipment, expand production and move products to market.
For the PMSU, preserving ADB’s capacity to serve these sectors should remain a central consideration in any discussion about ownership, capital requirements and operational reforms.
The union is warning that a narrow focus on commercial restructuring could weaken the institution’s development role if the implications for agricultural financing and rural communities are not properly considered.
At the same time, the bank’s long-term ability to fulfil that mandate depends on its financial health, effective governance and capacity to meet applicable regulatory requirements.
The challenge facing stakeholders is therefore how to strengthen ADB’s financial position while protecting jobs and maintaining its developmental responsibilities.
Union Calls for Collective Action to Save Jobs
Obeng-Gyan urged the government, regulators, ADB management and organised labour to work together towards a sustainable solution that protects the institution and its employees.
He maintained that the union’s demand was not to preserve jobs regardless of the bank’s financial condition, but to ensure that the institution remains viable enough to sustain employment over the long term.
“We do not defend jobs at the expense of institutional survival; we defend the institution because its survival guarantees sustainable jobs,” he said.
