We don't know details of employment freeze in 2023 budget - TUC Secretary General
Dr. Yaw Baah, Secretary General, Trades Union Congress (TUC), has
indicated that his outfit does not have details of the government’s plan
to freeze hiring in the public service as contained in the 2023 budget.
According to him, the TUC does not know whether or not this forms
part of the conditions the International Monetary Fund (IMF) is giving
to Ghana for an economic recover programme.
Speaking on Accra-based TV3, Dr Yaw Baah explained, “we still don’t
have the details of the IMF conditionality but you will not be wrong if
you think this is part of IMF conditions. Since 1965 when Ghana
Government started going to IMF, the employment freeze has always been
part, of the last one that ended, employment freeze was one but in that
case, it was net.
“Net meant that if somebody retires you can replace the person. So,
the net freeze is what we need. But this one, we don’t know the details,
whether it is the net freeze or total freeze.
“If it is a net freeze then it is like the previous one but if it is a
total freeze, it is another ball game altogether. There are 644,000
people on the single spine. Let us assume without admitting that about 5
per cent of them retire yearly.
“If only five percent retire every year, we are talking now about
over 30,000 people retiring and if the 30,000 people retire and they
don’t replace them it will affect service delivery. If you reduce
numbers by over 30,000 and they have not been replaced then your
effectiveness in service delivery will be affected.”
The government of Ghana through the Minister of Finance, Ken
Ofori-Atta, announced in the 2023 budget a freeze on employment into the
civil and public service.
According to him, the government will not set up new government agencies in 2023.
The minister while presenting the 2023 budget in Parliament on
Thursday, November 24, noted that as the first step toward expenditure
rationalisation, the government has approved a number of directives
which takes effect from January, 2023.
These are “All Ministries, Departments and Agencies (MDAs),
Metropolitan, Municipal and District Assemblies (MMDAs) and
State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations
to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This
directive applies to all methods of fuel allocation including coupons,
electronic cards, chit system, and fuel depots. Accordingly, 50% of the
previous years (2022) budget allocation for fuel shall be earmarked for
official business pertaining to MDAs, MMDAs and SOEs;
“A ban on the use of V8s/V6s or its equivalent except for cross
country travel. All government vehicles would be registered with GV
green number plates from January 2023; Limited budgetary allocation for
the purchase of vehicles. For the avoidance of doubt, purchase of new
vehicles shall be restricted to locally assembled vehicles;
“Only essential official foreign travel across government including
SOEs shall be allowed. No official foreign travel shall be allowed for
board members.”
Ofori-Atta added “Accordingly, all government institutions should
submit a travel plan for the year 2023 by mid-December of all expected
travels to the Chief of Staff; As far as possible, meetings and
workshops should be done within the official environment or government
facilities; Government sponsored external training and Staff Development
activities at the Office of the President, Ministries and SOEs must be
put on hold for the 2023 financial year; Reduction of expenditure on
appointments including salary freezes together with suspension of
certain allowances like housing, utilities and clothing, etc.;
“A freeze on new tax waivers for foreign companies and review of tax
exemptions for the free zone, mining, oil and gas companies; A hiring
freeze for civil and public servants, No new government agencies shall
be established in 2023; There shall be no hampers for 2022; There shall
be no printing of diaries, notepads, calendars and other promotional,
merchandise by MDAs, MMDAs and SOEs for 2024; All non-critical project
must be suspended for 2023 Financial year.”
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