General News of 2014-05-02

Demand for pay rise will cause job cuts - Asiedu Nketia

Johnson Asiedu Nketia has said that constant agitations by labour unions for a salary increment will only result in job cuts.
He noted that the situation will also hurt job creation in Ghana saying, “…agitations for higher salaries in times of austerity can only work against job creation efforts in the economy.’’
“If all your workers are demanding higher wages in a situation where you are not making profits; you can only cut costs by reducing the number of people you have employed,’’ the NDC General Secretary said in an interview.
Organized labour served notice to resist any attempt to institute a wage freeze in 2014 as being considered by the Finance Ministry.
Though 2014 has not experienced many sit down strikes, 2012 and 2013 recorded some of the highest labour unrest in a bid to demand increased salaries.
The labour groups known for their frequent threats of industrial action include teachers, doctors and nurses.
But the General Secretary of the ruling NDC in an interview with Citi News said the implications of demands for higher wages is for government to reduce employment.
"…if unions are interested in employment generation, then they have to understand the implications of higher wage demands; agitation for higher wages in this time of crisis is not an option that we should be looking at currently,” Mr. Nketia reiterated.
Labour is currently negotiating an upward adjustment in the national daily minimum wage of GHc5.24 pesewas.
The National Tripartite committee is expected to release a communiqué to that effect soon.