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Ghana’s Labor Unions Push for Pay Reform to Address Poverty-Line Wages

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Akufo Addo Organised Labour
Organised Labour

Organized labor groups in Ghana have intensified calls for a comprehensive review of the country’s wage structure, citing stark disparities and incomes that fall below global poverty thresholds.

At a pre-May Day forum in Accra, trade union leaders and policymakers highlighted the urgent need to reset pay scales and working conditions, particularly under the Single Spine Pay Policy (SSPP), which critics argue has failed to ensure equity or attract skilled professionals to public service.

Dr. Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress (TUC), underscored the gravity of Ghana’s wage crisis, noting that the daily minimum wage of GH₵19.97 (US$1.28) for an eight-hour workday is less than half the international poverty line of US$2.15.

By comparison, he pointed to hourly rates of £8 in the UK and US$15 in the U.S., emphasizing that Ghana’s compensation levels are untenable for sustaining livelihoods. “If our top civil servants earn just US$860 monthly, how can we retain talent when global opportunities beckon?” he asked rhetorically during the forum, themed *‘Resetting Pay and Working Conditions in Ghana: The Role of Stakeholders’*.

George Smith-Graham, CEO of the Fair Wages and Salaries Commission (FWSC), acknowledged systemic flaws in the SSPP’s implementation, stating that the policy’s rollout lacked complementary public sector reforms. “After adopting the Single Spine, everyone went to sleep. Linking pay to productivity never materialized, fueling industrial unrest,” he said. Smith-Graham endorsed calls for a reset to align wages with performance, reduce inequality, and improve public sector competitiveness.

The forum concluded with a key announcement: President John Mahama has proposed establishing an Independent Emolument Commission to overhaul compensation frameworks. The initiative, pending constitutional review, aims to institutionalize equitable pay structures and depoliticize wage negotiations.

Ghana’s wage debate unfolds against a backdrop of rising living costs and a strained public sector. While the SSPP initially sought to standardize government salaries, its inability to address productivity gaps and inflation-adjusted earnings has left workers disillusioned. Analysts warn that without meaningful reforms, brain drain and labor strikes could escalate, further destabilizing critical sectors like healthcare and education.

The push for an Emoluments Commission signals recognition of these systemic challenges. However, success will hinge on legislative follow-through, stakeholder collaboration, and sustainable funding—a complex balancing act in an economy grappling with fiscal constraints. As global inflation and currency pressures persist, Ghana’s ability to redefine fair wages may prove pivotal in shaping its socioeconomic resilience and workforce morale.

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