Low salaries, bane of public sector labour disputes

Mr Kwadwo Asare-Bediako, Fellow of the Institute of Human Resources Practitioners, (IHRP) Ghana on Wednesday attributed the rampant industrial disputes and the recurrent strike actions by various categories of public sector workers to low salaries, and unfavourable terms and conditions of service.

"Low salaries which do not meet basic costs of living, comparatively low salaries in relation to pay levels in the private sector, placement on the Ghana Universal Salary Structure (GUSS) and disparities in salaries across organizations in the public sector are the other factors," he said.

Mr Asare-Bediako, who is Human Resource Management Consultant, stated at the annual Human Resource Management Week lecture on the topic, "The Public Sector Wage and Salary problem: Diagnosis and Prescriptions."

He said low remuneration offered by the government as an employer also account for the low morale, apathy, low performance and wide commitment gap that characterized most public sector workers.

"Given the crucial role that the public sector plays in the development of the country, the pay problem deserves priority attention, and must be tackled with all seriousness", Mr Asare-Bediako said.

He identified the size of the pay packet and the public sector pay management and administration as the main factors accounting for dissatisfaction and frustrations among workers.

Mr Asare-Bediako said: "As far as the size of pay is concerned, the issue is the small size of the pay packet. The problems here have to do with the fact that the pay is not attractive enough; the pay in the public sector does not achieve external equity in relation to pay in the private sector, the pay is not realistic against present day cost of living".

He said cumbersome, ill-defined jobs structure, existence of multiple bargaining camps within the public sector, ineffective salary administration and the absence of a central agency with full responsibility and authority to manage and administer public sector wages and salaries and other human resources activities also accounted for dissatisfaction in the sector.

Mr Asare-Bediako, however, said one of the greatest factors contributing to the low remuneration in the public sector is low productivity, stressing, "Until labour productivity in the sector is considerably improved there cannot be any significant change in remuneration."

The ultimate solution to the problem of low remuneration is for the public sector employer to increase salaries to levels that are competitive with the private sector to enable its employees to meet their basic needs.

Mr Asare-Bediako cautioned that any solution not based on productivity improvement would fuel inflation and create serious economic problems for the country.

"We need to shift from the present over concentration on how to share the small pie to how to make a bigger pie. Labour productivity must come before increased pay."

This would be dependent upon the government's ability to pay or increment in the total revenue through increment in taxes levels or reduce the size of workforce in Ministries, Department Agencies (MDAs) or setting up performance targets for MDAs to improve their output.

Mr Asare-Bediako said management and administration of salaries could be addressed with rationalized jobs in the public sector.

He said the administration of salaries in such a manner would reward individual employee performance and abolish the multiple bargaining camps in the sector pay centralized collective bargaining.

Mr Asare-Bediako said the problems of the public sector would not be solved through sermons and exhortations on productivity, dedication to duty and positive attitudes to work.

It would be solved only when public sector executives and government take the bull by the horn and act, "so far managers in this country, especially public sector executives and government, have demonstrated a bewildering propensity to maintain the status quo," he said.

Mr Asare-Bediako said the public sector would not improve if its executives and government do not display a passion for change, challenge the established traditions and practices, and lead the crusade for change.

He urged the public sector executives in particular and the government as a whole to be humble and listen to varying viewpoints and to ensure the necessary changes required in promoting labour.

Mr Asare-Bediako asked the sector to take actions that would move the sector from its present undesired state of apathy, low motivation, low performance, and customer insensitivity to the desired state of commitment to duty, high motivation, enhanced customer sensitivity and improved productivity.

The lecture was chaired by Mr Andrews Quayson, IHRP Chairman and supported by Mr Austin Gamey IHRP president.

Human resource practitioners, students from GIMPA, Journalists and a cross section of the general public, attended the lecture.