Industrial and Commercial Workers’ Union laments board interference in Rural Banks

General Secretary of the Industrial and Commercial Workers' Union (ICU), Ghana, Mr. Morgan Ayawine, has expressed serious concerns over growing interference by board chairmen in the operations of Rural and Community Banks across the country.

Speaking at the ICU Upper West Regional Conference held in Wa on April 7, 2025, Mr. Ayawine described the governance practices in these banks as a major deviation from standard corporate governance principles.

He warned that such interference poses a threat to effective administration and labour relations.

General Secretary of the Industrial and Commercial Workers' Union (ICU), Ghana, Mr. Morgan Ayawine

According to him, many board chairmen of Rural and Community Banks are increasingly usurping the responsibilities of management by issuing query letters to staff and, in some cases, signing termination and dismissal letters.

“This is a great cause for concern,” he emphasized, adding that these actions go against best practices in labor relations.

“The role of the Board of Directors is entirely distinct from that of Management,” Mr. Ayawine stated.

“While boards are mandated to formulate major policies, it is the responsibility of management to handle day-to-day operations, including employment matters, staff discipline, training, and collective bargaining.”

He cautioned that when board members overstep their boundaries, it creates confusion, disrupts industrial harmony, and weakens confidence in governance systems.

He urged for urgent reforms to align the governance structure of Rural and Community Banks with generally accepted corporate governance practices in Ghana.

Touching on the theme of the conference, Mr. Ayawine called on the Regional Council to develop resolutions on pressing socio-economic issues that would stand the test of time.

He urged delegates to take an active role in deliberations and decision-making as the conference served as a prelude to the Union's 12th Quadrennial Delegates' Conference.

On union-management relations, the ICU boss stressed the need for mutual respect and cooperation between labour and employers.

He said businesses are inherently democratic in structure and require the joint effort of capital and labour to thrive.

“Capital alone cannot produce and earn profit, just as labour alone cannot operate and earn income. It is only through a balanced partnership that businesses can become productive and profitable,” he noted.

Mr. Ayawine reaffirmed ICU's commitment to championing the rights of workers and promoting strong industrial relations for national development.

—citinewsroom