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Facts Of Salary Increase Unfold

By Daily Guide
Wed, 14 Jan 2009 | Print | E-Mail | PDF | Graphics Version
General News

Kofi Asamoah, TUC General Secretary Controversy is gradually characterizing the new salary increases announced by the Kufuor Administration recently.

With just a day to leave office, ex-President John Agyekum Kufuor announced 16-32 percent increases in salaries for workers in the public and civil service.  Indeed the increment came as a big surprise to many Ghanaians including former Finance Minister, Yaw Osafo Maafo, who thought the decision was ill-timed.

With the global economic recession, the former Finance Minister reckoned that any increase in expenditure, especially the wage bills, without corresponding increases in revenue could be suicidal for the incoming administration, noting that the decision should have been left for the incoming government.

Mr Osafo Maafo further stressed that the past government should have initiated a debate for the implementation of the policy in October last year before its implementation.

But the Kufuor Administration's decision to improve the living conditions of workers is not a novelty.  The fact of the matter is that the increases formed part of the implementation of the single spine salary structure upon which the Fair Wages Commission was set up which has been deliberated upon for the past two years.

In June last year, the Fair Wages Commission presented its consultant's recommendation to the Kufuor Administration.  

Among the recommendations was the increment of wages and salaries for public and civil service workers between 16 and 34 percent. Cabinet approved this recommendation in September the same year for implementation this January.

Consequently, in the 2009 budget read by the former Deputy Minister of Finance and Economic Planning, Dr Anthony Akoto Osei, it was projected that government's wage bill would go up by 34 percent and this was voted for by Parliament in November last year.

The former Deputy Information Minister, Frank Agyekum explained: “It was worth noting that the paymaster, which is the government, had itself approved of the recommendation from the Fair Wages Commission way back in September so it was very difficult to anticipate any opposition arising against the ceiling announced by the government.”

He added: “I think the new government's problem was that we have not allowed them to take credit for this but this was something that had been recommended and approved.  The only problem was that there was not enough time for the tripartite to endorse it.”

Before the presidential run-off in December last year, President John Evans Atta Mills expressed grave concern about the rising cost of living in Ghana and pledged that the nation's workers pay would go up within his first hundred days in office.

This is a campaign promise and to this end, teachers, secretaries, nurses and other government workers are expecting another rise in their salaries from the National Democratic Congress (NDC) Administration within its first hundred days in power.

Meanwhile, the Trades Union Congress (TUC) is appealing to the new administration to implement the new salary structure without any delay.

The General Secretary of TUC, Kofi Asamoah was sure implementation of the new structure will ensure equity and motivate public sector employees.

Kofi Asamoah said there had been consultative meetings between government and stakeholders on the single spine salary structure in the public sector.

He stated that the implementation of the new salary structure will not only ensure equity but motivate public sector employees whose support is critical for the success of government policies.

Kofi Asamoah stressed the need for the new administration to address issues of low pensions and respect for workers rights.

He was sure if employees are paid well and adequately motivated they will increase production.

By Felix Dela Klutse


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