Pay Rise Will Cause Job Cuts – Asiedu Nketia

The General Secretary of the National Democratic Congress (NDC), Johnson Asiedu Nketia, says constant agitations by labour unions for salary increment will only result in job cuts.

He noted that the situation will also hurt job creation in Ghana saying, “…agitations for higher salaries in times of austerity can only work against job creation efforts in the economy.’’

“If all your workers are demanding higher wages in a situation where you are not making profits; you can only cut costs by reducing the number of people you have employed,’’ he added.

Organized labour has served notice to government it will resist any attempt to institute a wage freeze in 2014 as being considered by the Finance Ministry.

Although 2014 has not experienced many sit down strikes, 2012 and 2013 recorded some of the highest labour unrests in a bid to demand increased salaries.

They labour groups known for their frequent threats of industrial action include teachers, doctors and nurses.

But the General Secretary of the ruling NDC in an interview with Citi News said the implications of higher wage demands is for government to reduce employment.

‘”…if unions are interested in employment generation, then they have to understand the implications of higher wage demands; agitation for higher wages in this time of crisis is not an option that we should be looking at currently,” Mr. Nketia reiterated.

Labour is currently negotiating an upward adjustment in the national daily minimum wage of GHc5.24 pesewas.

The National Tripartite committee is expected to release a communiqué to that effect soon.