Don't Pay More To Workers - IMF Warns Govt

President J. A. Kufuor is torn between the workers of Ghana and the International Monetary Fund (IMF). While organized labour is insisting on a 68 per cent increase in minimum wage, the IMF has warned the government that failure to impose a wage freeze could lead to a withdrawal of its support.

The big question is whose support does Mr. Kufuor really want? The IMF or the workers of Ghana? The INSIGHT has obtained a copy of a letter sent to the President on November 14, 2002 on behalf of the Managing Director of the IMF setting out the conditions for the Fund’s support in 2003.

Portions of the letter published by the paper say the IMF wants the government to:

1. Increase petroleum products in line with the Automatic Adjustment Formula, together with an announcement that those future adjustments would be made according to the formula without further official approval or authorization.

2. A cabinet decision that for 2003, the quarterly expenditure ceilings on personnel emoluments will be rigorously enforced by the Ministry of Finance.

3. Abolition of the direct debit system for executing expenditures.

4. A cabinet decision imposing a moratorium on further wage increases for public servants in 2002, among others.

Meanwhile, the tripartite committee resumes negotiations on Thursday with a new outlook following the revision of government and labour stance. The Committee has been unable to come out with a new minimum wage due to differences in the amount being offered by government, Employers and the TUC.

But the TUC is now asking for ?10,500 instead of ?12,000 while the government and the Employers Association have offered ?8,700 and ?8,800 respectively. Analysts say a deal could soon be reached.

President J. A. Kufuor is torn between the workers of Ghana and the International Monetary Fund (IMF). While organized labour is insisting on a 68 per cent increase in minimum wage, the IMF has warned the government that failure to impose a wage freeze could lead to a withdrawal of its support.

The big question is whose support does Mr. Kufuor really want? The IMF or the workers of Ghana? The INSIGHT has obtained a copy of a letter sent to the President on November 14, 2002 on behalf of the Managing Director of the IMF setting out the conditions for the Fund’s support in 2003.

Portions of the letter published by the paper say the IMF wants the government to:

1. Increase petroleum products in line with the Automatic Adjustment Formula, together with an announcement that those future adjustments would be made according to the formula without further official approval or authorization.

2. A cabinet decision that for 2003, the quarterly expenditure ceilings on personnel emoluments will be rigorously enforced by the Ministry of Finance.

3. Abolition of the direct debit system for executing expenditures.

4. A cabinet decision imposing a moratorium on further wage increases for public servants in 2002, among others.

Meanwhile, the tripartite committee resumes negotiations on Thursday with a new outlook following the revision of government and labour stance. The Committee has been unable to come out with a new minimum wage due to differences in the amount being offered by government, Employers and the TUC.

But the TUC is now asking for ?10,500 instead of ?12,000 while the government and the Employers Association have offered ?8,700 and ?8,800 respectively. Analysts say a deal could soon be reached.