Business News of 2013-12-19

Don't freeze salary increments -TUC warns gov't

The Trade Union Congress (TUC) General Secretary has cautioned government to discard the idea to freeze increment of salaries of public sector workers.

Kofi Asamoah told Joy News Thursday that organized labour will not entertain any such proposal considering the continuously high cost of living in the country. "In the circumstances that we are, where cost of living is increasing, you projected inflation to be 9% next year. If you talk about wage freeze then you are indirectly saying that the current wage should be reduced in a way.

"Even if you pay up to the projected inflation, you have not even increased salary, you have just restored value of our salaries from 2013 to 2014, so such a proposal would never be acceptable to organized labour", the TUC boss asserted.

This comment came in the wake of Finance Minister's statement before Parliament yesterday, that government is considering placing a moratorium on increases in public sector salaries next year.

According to Mr. Seth Tekper, if implemented, any planned increase in salaries of public sector workers will be frozen. The Finance Minister noted that the decision taken by government was the outcome of a meeting held in the Volta Regional capital, Ho.

It was also agreed in that meeting that measures regarding placing moratorium on new contracts should be continued.

In this respect, Mr. Tekper said, government will be liaising with labour to develop a comprehensive set of measures in the interest of the country that would ensure moderation in negotiating wage or salary increases including a possible moratorium on increases.

But Labour is not the least impressed. Serving notice it will not accept government's attempt to freeze increment of public sector workers salary, the TUC boss noted "it has never happened in the history of any country and it will not".