Labour strikes could erode Ghana's macroeconomic gains

Sunyani, Oct. 18, GNA - Dr. Francis Appiah, Executive Secretary of the National Peer Review Mechanism-Governing Council, on Wednesday said the strikes and agitations on the labour front could erode Ghana's macroeconomic gains that have attracted commendations and acclamations from external partners.

He said strikes and distortions within the labour front only forced the government to source for extra funds to supplement fiscal budgetary allocations, a phenomenon that he said created excessive wage/salary component.

This, he said, was highly responsible for the instability of the cedi, high inflation and interest rates and improper planning of activities by businesses and consumers.

Dr. Appiah disclosed this in an interview with the Ghana News Agency (GNA) in Sunyani at a dissemination workshop on African Peer Review Mechanism.

It was organised by the National African Peer Review Mechanism Governing Council (NAPRM-GC) and the National Commission for Civic Education (NCCE) for stakeholders in Brong-Ahafo.

The workshop was to inform participants about the country report on the African Peer Review Mechanism (APRM) and elicit the views and support of participants on the report to aid the council's monitoring and evaluation process.

Dr. Appiah said: "besides these problems, the strikes could create distortions in the business environment, the consequences of which could affect the stability of the labour market".

He called for a coherent salary/wage policy to address the problem, "otherwise an unhealthy wage/salary structure would completely erode the macroeconomic gains made in the country".

Most Reverend Dr. Bishop Paul Bemile, Member of the NAPRM-Governing Council, said a seven-member council was inaugurated in 2004 and charged with the task to take concrete measures to oversee the implementation of the APRM in Ghana and ensure that it is an independent, non-partisan and an all-inclusive exercise.

He stated that the process included the self-assessment of the governance strategies of the country and the preparation of a programme of action to correct any inadequacies in the system.

Mrs. Fanny Judith Kumah, Director of Literature and Material Development, National Headquarters of the NCCE, said district APRM committees would soon be formed to enhance their participation in the monitoring process.

Speaking on "Corporate Governance", Mr. Sam Cudjoe, Principal Programme Officer of the NAPRM Governing Council, called on the Institute of Chartered Accountants to enforce and empower its monitoring capacity to rope in more accountants for Brong Ahafo, which had few of such personnel.

He said weak financial and investigative journalism was hampering the enforcement of good business ethics and called for quick measures to reverse the trend.