Business of 2006-09-21

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"Abolish minimum wage" - Pianim

Pro & cons of Minimum wage
Author: asante-Germany
Date: 09-27 06:38 

Minimum wage

The minimum wage is the minimum hourly, daily or monthly amount which workers must be paid by their employers. Each country sets its own minimum wage laws and regulations, and more than 90% of all countries worldwide have some sort of minimum wage legislation.[1]

The first national minimum wage law was enacted by the government of New Zealand in 1896, followed by Australia in 1899 and Great Britain in 1909. In the United States, statutory minimum wages were first introduced nationally in 1938[2], and in the United Kingdom in 1999[3]. In the European Union, 18 out of 25 member states currently have national minimum wages.[4]

Supporters say that minimum wages reduce exploitation, they can help ensure that everyone can afford to live and that they do not have negative effects on employment, or only very little, and may even have positive effects. Opponents on the other hand contend that minimum wage causes inflation and unemployment, thus harms rather than helps the poorest workers, and slows economic growth.[5] Many countries, such as Sweden, Finland, Denmark, Belgium, Switzerland, Germany, Austria, Italy, and Greece have no minimum wage laws, but rely on the employer's organisations and their trade union's ability to set minimum earnings through collective bargaining.[6]

One interpretation is that the minimum wage law makes it a crime for an employer to pay a worker less than the stated minimum. An alternate, though equally valid interpretation, is that the minimum wage law makes it a crime for a person to sell his labor at less than the stated minimum. For example, white labor unions in South Africa have pushed for minimum wage laws so as to exclude black workers from the labor market. By preventing the black workers from selling their labor for less than the white workers, the black workers are prevented from competing for white-held jobs.[7]

Today, neither the International Labour Organization (ILO)[1] nor the OECD[8] believe that minimum wages can be directly linked to job losses in affected countries.
Re: "Abolish minimum wage" - Pianim
Author: Manny
Date: 09-25 23:48 

Even the USA, the bastion of capitalism, has the minimum wage. How can you ay it is an anachronism?

Get lost, Pianim!
Stupid Talk
Author: Garbby.Toronto.
Date: 09-22 20:22 

Mr.Pianim with due respect we can't leave the lives of the ordinary Ghanaian to your greedy corporate capitalist associates who doesn't care about the well being of their employees but the inflows of their pocket.Sorry in real sense capitalist is the next chapter of slavery.I suggest you make a sensitive thought about this ideology.
Chinese style low wage?
Author: Kwaku K
Date: 09-21 21:56 

One wonders how the Chinese manage to produce goods and services at such low competitive wages? I think Ghana's minimum wages are not based on productivity increases but dictated to them by the West. Minimum wage in Ghana and most third world countries are there a farce and unrealistic under economic conditions. This does not mean minimum wage should be abolished. However increased should be closely guarded to not lead to high inflation.
Stupid Suggestion
Author: True Observer
Date: 09-21 20:16 

A minimuim wage ordinance exist in most capitalist and true market economies including the US.
Conventional Theorist at work
Author: Ilunga
Date: 09-21 18:57 

Mr. Kwame Pianim still believes these conventional theories work and will save Ghana.

He is in effect proposing that we expose our already poor workforce to employer cheating.

Most of the banks he is referring to are Expatriate Banks with foreign capital support.

Mr. K Pianim should have more experience in the failure of many recommendations like SAP, ERP etc which were based on conventional economic theories. We always think it worked in advanced countries so it will work in Ghana. But the structures and econimic behaviour may differ slightly.

I think he is the head oe Public Utility Regualtory Commission (am I right?) and Energy sector which they mainly regualte is failing.

Some of these thinking could be the cause. He need re-orientation on the significant differences in the allocation of resources in the Ghanaian economy and economic behaviour in Ghana that may vary from the conventional behaviour.

Just my opinion.
Author: THE TRUTH Project Ghana
Date: 09-21 18:43 


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There are two versions of the scam, one message signed by a Florence Cole (see below), the other signed by

Lionel Gracia
Publicity Secretary GYWO

Both emails are equally bogus. Another version of the scam ran in 2004, see

The following warning was found on

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These may be scams:
(1) National Awareness Program on HIV/AIDS
Supposedly to be held in Washington DC and London and organized by a Ms. Sophia Loren.
(2) International Youth Health Development Organization Conference (IYHDOC)
Supposedly to be held 9-13 November 2005, in Florida, USA and Madrid, Spain.
(3) International Conference on Racism and Child Abuse - Global Youth Welfare Organization, in USA and Italy, in December 2005.

Here is the scam invitation:

The International Conference on Racism and Child

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Organizing the International Conference on Racism and Child Abuse fights and
interrogates the growing social vices Child Abuse and racism taking place in
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together Youths, Youth Leaders, Performers, Educators, Artists, Scholars and
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The events shall commence on the 28th of November 2005 and end on the 1st of
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Taylor, MI 48180-6320


While the second segment in Italy shall commence on the 5th of December and
end on the 8th of December 2005 at

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le Tecchio 10,

80125 Napoli,



We believe this is an incredible opportunity to network with like-minded
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Organizations, Professionals and Business Organizations, Non Governmental
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Author: Benny
Date: 09-21 18:13 

Absolute nonsense, who says slave unskilled labour attracts any good investment this century? The Asians are seeing so much investment not just because of any cheep labour. They have invested in their human resource and are now reaping it. Sometimes it’s hard to believe well informed people can make statements like this. Just like our prez.
Do not Abolish Minimum Wage
Author: Kwami Agbodza, CPPUK Sec.
Date: 09-21 17:55 

Dear Kwame Pianim,

I believe you are aware that economic theory does support "the minimum wage" as a form of price control. In this instance, it is a form of minimum pricing which is necessary in free-markets, especially as it is the minimum price of labour or the determinant of standard of living amongst others.

Kwami Agbodza
CPP UK Secretary
Shut Up, Useless Economist
Author: Annoying
Date: 09-21 16:03 

Mpiani:- How do you determine the value of your labour? The minimun Wage is the fundamental basis whereby every market value of labour is measured.The government approves it and is included in the labour law (Tarif). Nobody works for nothing. The worker cannot charge more than the value of his labour neither would he charge less. The employer would like to get 100% profit of his investment and is prepared to pay less if even nothing.Market prices are determined mostly by the cost of production including labour.
Minimun Wage form the source of labour contracts written or verbally that include the condition of service. By throwing away the minimun wage system you like to destroy the basis of labour market in Ghana.
I am surprised, Mr. Mpianim, that one has to do several work to earn one's livelihold. Such people have nothing to offer the country but want to destroy the fabre of human existence. Mpianim, think twice before you talk. It is not booklong but wisdom. Economist does not forget the cause of "Demand and Supply"
Facts to Consider
Author: Willy
Date: 09-21 15:04 

Governments provide minimum wages based on poverty level in a country. Factors that are taken into consideration are the following.
1. The take home pay after deducting the taxes and sometimes deduction of some cafeteria plans such as medicals.
2. The social security benefit credits that the poor can accumulate when he/she retires.
3. The fringe benefits that the employer may pay for the employee.

The issue about this article is that who will pay for the withholdings for the government and the employee if the investor/employer pays below the supposed minimum wage? For example, 45,500 cedis to 22,750 cedis. These numbers are just for illustration as I don't have actual minimum wage for Ghana. Will the fringe be catered by the employer? Can the older emloyees work two to three jobs? How will multiple job fits the social life and family? How will below the minimum wage affects government revenue collections.
Please do not let trade unions drive entities crazy. Bring them to the table for organizational changes. If production is low, ask the unions how the situation can be changed or face shut down. If the organization is facing liquidity problems, ask the unions how they can help in attracting investors. These tactics work. Educate the unions on them.
Author: Tripple
Date: 09-21 14:44 

Can’t believe my ears. Eh! Are you guys sure he is an economist. My dear commentators, apart from the very few international and foreign companies in Ghana, most of local businesses and companies under pay workers and the sad thing is that they form the majority of our employers. Look banks and the very few institutions are not the only businesses facing competitions but also the local and small businesses as well in the presence of minimum wage. Can’t imagine how these companies will take advantage of our poor employees considering the booming level of unemployment in the country.
min wage
Author: dan
Date: 09-21 12:38 

i see you own a business!! only a business owner would say such!! the Usa has min. wage of 5.15$ per hour now! but my employer is required to pay me 18.60$ per hour as a union lorry mechanic!!! why work 3 jobs, you will work your self to a early grave!!!!
Hmmm mimimum wage!
Author: Mn
Date: 09-21 12:17 

Is the minimum wage in Ghana a safety net for the poor or a hidrance to foreign investment? I will need some answers but please I do not want statements like we need investments and the multinationals will pay low rates.
Re: "Abolish minimum wage" - Pianim
Author: Keynesian
Date: 09-21 12:11 

Sir, the concept of theory of 'minimu wage' is neither socialist not capitlist. I want to believe that the expression you used was just a passing comment. You did make some good points though, that we should allow the market to determine the wages to be paid at the various workplaces. The is was go along side with the minimum wage to serve as a bench mark and protect vulnerable groups and exploitative employers. This happens in every place, in the develop countries we have minimum wages. This is a thrid wolrd country and when our wages are low, surely it will attract investors as is the case in some countries. Again this practice can work well, if skilled labour in almost every sector is in abundance, this way there will be stabilty in the wage levels, very little disparities will exist.
thank you
Author: JOE
Date: 09-21 12:09 


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