Business News of 2026-08-25

Colonial wage system responsible for Ghana’s low salaries - TUC

The Deputy Secretary-General of the Trades Union Congress (TUC), Dr Kwabena Nyarko Otoo, says Ghana’s persistent low wages can be traced to wage practices introduced during the colonial era. Speaking on Joy FM on Tuesday, August 25, Dr Otoo said colonial employers deliberately kept wages low because they believed workers would leave their jobs once they earned enough to meet their financial targets. He explained that historical accounts suggested some Ghanaian workers who received higher wages were able to achieve their financial goals, save money and leave their jobs within about six months. 'Power outages will be resolved by end of September' – Mahama Ayariga According to Dr Otoo, this created labour shortages even when jobs were available, forcing employers to reduce wages and spread workers’ earnings over a longer period. “So the pay they could give you in six months, they extended it to one year, and that is the genesis, and we have not been able to overcome it,” he said. He said the system was designed to keep workers in their jobs for longer periods by making it harder for them to reach their financial targets quickly. Dr Otoo argued that although colonial rule ended decades ago, the wage structure created during that period has remained embedded in Ghana’s labour system and continues to contribute to low earnings. Dr Otoo was speaking about wages and the cost of living in Ghana. DR/MA Ghana will not borrow simply because financing is available – Dr Ato Forson Source: www.ghanaweb.com
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