We may renegotiate 12.5% pay rise – Baffour Awuah
Employment and Labour Relations minister-designate, Hon. Ignatius Baffour Awuah has stated that, his Ministry would assess the budgetary allocation as far as the implementation of the 12.5 percent pay raise by former President John Mahama’s government is concern.
According to Hon. Ignatius Baffour Awuah who appeared before the Appointments Committee to be vetted the current government would take the appropriate steps to open fresh negotiation with labour if payment of the increment, will affect public expenditure negatively.
“Inflation projection might have gone wild, in which case you would have labour coming back to negotiate. So, even though that is what the law says, in practice sometimes it is difficult to get people to understand it."
The base pay, he said has its own challenges because between January and April 2018, many things could happen in the country.
But Mr. Awuah during the vetting admitted that there was a conflict that exist between the labour law and the Financial Administration Act and promised to take steps to have an amendment initiated to resolve the challenge
PUBLIC workers across all sectors are expected to enjoy a 12.5 percent pay rise effective this January, a communiqué issued in Accra in September 2016 declared.
Negotiations for salary adjustments have been ongoing for some time but the Public Sector Joint Negotiation Committee concluded discussions on the base pay increment and arrived at the rate.
The Public Sector Joint Negotiation Committee comprises Fair Wages and Salaries Commission (FWSC), Ministry of Finance, Ministry of Employment and Labour Relations all representing government and Organised Labour and Associations on the other hand took part in the negotiations
Chief Executive of the Fair Wages and Salaries Commission (FWSC) Mr. George Smith-Graham signed the Communiqué on behalf of government whilst the Secretary-General of Trades Union Congress (TUC), Dr. Yaw Baah, signed on behalf of Organised Labour and Associations.
Meanwhile government also recently increased the daily minimum wage by 10 percent, and this will take effect from January 2017.
But noting that the minimum wage was not a living wage, government said it could not support any increase beyond the 10 percent.
The 10 percent increase saw the previous daily minimum wage of GH¢ 8.00 increase to GH¢ 8.8.