Business News of 2013-12-20

TUC rejects calls for wage freeze in 2014

The Trades Union Congress (TUC) has given indications it will not consent to the freezing of salaries of public sector workers at current levels in 2014.
According to the Union, although the government is yet to formally inform them of the decision, it will not accept the proposal.
The Finance Minister, Seth Tekper in Parliament on Wednesday appealed to public sector workers to accept the intended freeze on pay increases when he moved the motion for lawmakers to pass the Appropriation Bill to regulate government spending next year.
Declaring the TUC’s stance on the matter on Eyewitness News on Thursday, the Secretary General of the Union, Kofi Asamoah maintained that the proposal will not be accepted due to the high cost of living caused by inflation and other economic indicators.
This he said stifles the value of salaries of workers and therefore, “a wage freeze will definitely not be accepted by organized labour in any way.”
He mentioned that the intended action by government subtly means that “the current incomes of workers would have to be reduced” since government itself has projected an inflation of 9% in 2014.
“There is no way we will consider a proposal for a wage freeze in 2014; no, we will definitely not do that,” Mr Asamoah insisted.
Meanwhile, a Labor Analyst, Austin Gamey described the proposal by the government as “normal” but expressed surprise at the fixed stance taken by the TUC on the issue.
He counseled both government and the TUC to “exercise restraint, nobody should come to a conclusion yet” the talks on the matter is exhausted.