Government releases GH¢11.6m to clear railway workers’ salary arrears

The government has begun disbursing GH₵11.6 million to settle outstanding salary arrears owed to railway workers, following months of industrial unrest.

Dr. Frederick Appoh, Chief Executive Officer of the Ghana Railway Development Authority, confirmed the development, stating that the funds have been released by the Ministry of Finance and forwarded to the Ministry of Transport for onward payment to workers.

The decision comes in the wake of protests by the Railway Workers’ Union over unpaid salaries, some of which had accumulated for up to 14 months. Speaking on Citi Eyewitness News on March 26, Dr. Appoh disclosed that when the current management assumed office, they discovered salary arrears dating as far back as 2024.

According to the CEO, official records initially indicated a workforce of approximately 1,300 employees. However, a forensic audit later established the actual staff strength at 960.

To alleviate the financial pressure, the Authority, in collaboration with the Ghana Railway Company Limited, explored internal revenue-generating measures, including the sale of scrap materials, which raised about GH₵21.5 million. Dr. Appoh explained that part of those proceeds had to be used to settle contractor claims tied to unpaid consignments worth nearly GH₵10 million, reducing the amount available for salaries.

Dr. Appoh noted that the newly approved GH₵11.6 million is expected to cover approximately seven months of arrears for the entire workforce.

He added that the Authority is working with key stakeholders—including the Trades Union Congress, the Railway Workers’ Union, the National Labour Commission, and the Ministry of Transport—to establish a sustainable payment structure to prevent a recurrence.

Efforts are also underway to identify additional sources of funding to fully clear the remaining arrears.