Pulse.com.gh logo
Go


Issues 50% pay rise not possible, labour minister tells organised labour

After a series of sweeping increases in taxes, utilities, and levies came into force this year, organised labour has been the neck of government to increase salaries by 50%.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The Labour Minister Haruna Iddrisu has told Journalists in Accra that the 50% pay rise demanded by organised labour is not only "difficult but impossible."

After a series of sweeping increases in taxes, utilities, and levies came into force this year, organised labour has been on the neck of government to increase salaries by 50%.

They argue it is the only way workers can cushion themselves against the hikes.

However, the labour minister said their demand is not posssible.

“We need to be able to offset the outstanding legacy debt of almost GHS4.5 billion, so, a wage increase by 50 percent is not just difficult, but impossible.”

Read also: Fuel hikes sign of economic mismanagement-- Lecturer

“We would engage with Labour and see how we can reach them, in terms of some cushioning, and we have been meeting since they raised the red flags. We’ll continue to meet on Tuesday to look at it, particularly the PURC’s upward adjustment adjustments,” he said.

The chairman of the Tema District Council of Labour, Wilson Agana said labour will not settle for anything less than 50% salary hike after a marathon meeting between the labour minister and organised labour on Tuesday ended in a deadlock.

"We have to go back to the table and force for a salary increment for all workers. At least we have to go and fight for a salary increment of at least 50% else we cannot survive. Before we accept the increments then it means we must have salary raises for all workers. On Tuesday we will come out with our plans to press home our demands”, he said.

A Lecturer at the University of Ghana Business School, Dr. Kwasi Amponsah Tawiah, told Pulse Business labour is right to demand for pay rise.

Issues of tariffs turns to be complex and complicated,” Dr. Tawiah said. “Hikes in utility and fuel turns to affect everybody. Part of the worker's salary is used to pay for this (utility and fuel increment).”

Related: Organized labour fights for 50% salary increment

“They will ask for their pound of flesh,” because once salaries remain static, they are worse off when “they calculate” their transportation cost and others.

According to him, the employee is not supposed to be made worse off. To this end, Dr. Tawiah believes they are "justified" in their demand for pay rise.

Explaining further, he noted that the labour law said “employees should not be made worse off.”

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 New Appointment Nana Addo appoints Mahama as Lands Commission bossbullet
2 Ghana Politics Akufo-Addo fires Lands Commission bossbullet
3 Mobile Money MTN freezes account of Ponzi scheme over GH¢11m defaultbullet
4 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
5 Mahama boys prevented me from meeting him – Fibre Optics Inventorbullet
6 Salaries In 2018 Here are the dates public workers will be...bullet
7 Government Interventions UN expert says 1D1F, $1m Per...bullet
8 Banking In Ghana Invest in more risky ventures – Nana Addo...bullet
9 Ports And Harbour Issues GPHA staff apologises to Mac Manubullet
10 Free Decoder Promo StarTimes launches most affordable...bullet

Top Videos

1 New Discovery Ghana discovers new mineral, lithium in commercial quantitiesbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Support Finance minister buys Kantanka carbullet
6 New Phone Nokia’s MWC 2018 Event in Under 10 Minutesbullet
7 Money Alert Meet Africa's richest womanbullet
8 Video We are determined to move Ghana beyond aid - Bawumiabullet
9 Entrepreneurship Failure- How To Deal With It |...bullet
10 Tech 6 reasons you should buy an iPhone SE instead of...bullet

Business