Salary adjustment must go along with high productivity – Economist tells gov’t

Secretary-General of the TUC, Dr Yaw Baah (Right) recently asked President Akufo-Addo to increase salaries of workers

An Economist, Dr Adu Owusu Sarkodie, has told the government to increase salaries of workers.

However, he said, the increment should come along with high production.

He made this comment on the Key Points on TV3 Saturday May 14.

“The government should increase salaries but that should be accompanied with production,” Dr Adu Sarkodie said.

The Trades Union Congress (TUC) has said the government must increase salaries of workers to meet the rising rate of inflation.

Secretary-General of the TUC, Dr Yaw Baah explained that traders and employers mostly increase their goods and services whenever inflation rate also increase therefore they do not feel the brunt of the hardships.

To that end, he said salaries of works must also go up anytime inflation increases.

Speaking at a forum in Accra on Thursday April 21, he said “Employers should index our pay to the inflation because the employers change the prices of their goods so the inflation rate does not affect them the way it is affecting us therefore, we should get our salaries indexed.

“Don’t let us rely too much on government and employers. Let us ask the question, what can we do for ourselves as workers and unions? We will negotiate effectively this year and that one, I want to assure you that I will lead that negotiation.

“We will continue to talk, we will continue to negotiate but if the dialogue fails we are going to embark on an industrial action that has never happened in this country before.”

Inflation rate for March 2022 recorded 19.4%, the Ghana Statistical Service (GSS) announced.

This means that in the month of March 2022 the general price level was 19.4% higher than in March 2021, the Government Statistician Professor Samuel Annim said at a press conference in Accra.

“Year-on-Year change in food inflation (five percentage points) between February 2022 and March 2022 is twice non-food inflation )2.5 percentage points),” he said adding that “Year-on-Year change in food inflation is almost twice the 12-month rolling average from April 2021 to March 2022.”

Across the 13 divisions, rank of the top three has changed in March 2022.

Rate of inflation for Transport (26.6%) surpasses both Food and Non-Alcoholic Beverages (22.4%) and Housing, Water, Electricity and Gas (21.4%).

All three record inflation rates higher than the national average (19.4%).

Inflation rates for four divisions in March 2022 [Household equipment and maintenance (18.5% vs. 8.5%) ; Recreation, Sports and Culture (17.0% vs. 8.4%) ; Personal Care and Miscellaneous Goods(17.0% vs. 8.5%) ; and Education Services(2.9% vs. 1.1%) ) are least twice the rates for the rolling average from April 2021 to March 2022.

By Laud Nartey||Ghana


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