It would be suicidal for the government to raise workers' wages by 20% - Gammey.
According to Austin Gammey, a labor analyst, the Akufo-Addo administration will suffer if it accepts a 20% pay increase for public sector workers.
Workers in the public sector want a 20% pay increase to replace the government's agreed-upon 15% Cost of Living Allowance, which will expire in December 2022.
According to the workers, the country's skyrocketing level of inflation is a huge blow to them, hence their current demand.
However, in an interview with Naa Dedei Tettey on Morning Starr, Mr. Gammey stated that the government may oppose the workers' demand.
"The obvious thing for anyone to do is to pay based on productivity, but we don't pay based on productivity in Ghana." "Once we start paying people based on inflation and political considerations, this is what they'll demand," the analyst predicted.
He claimed that paying employees based on inflation has serious consequences for the government's budget due to the large number of public sector employees.
"I don't believe that if you speak directly to the IMF about including this in the approval of our budget for the year 2023, they will accept it if the government as an employer cannot afford to accept it." Because you want 20%, and if inflation is around 32% and we have to accept a 12% decrease in our income, they will bear with you. Mr. Gammey clarified that this is not based on productivity.
According to the Labour analyst, if the workers disagree on the demand, both parties will end up at the National Labour Commission to have the issue resolved.
"Because the government, as an employer, cannot afford to pay a 20% increase in base pay, it would be suicidal, and thus they will not be able to do it." If they are successful, it will be extremely sad and surprising because the consequences are obvious," he added.
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