Prof Bokpin: Govt got away with 10% wage hike, but Ghanaians are watching

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Economist Prof Godfred Bokpin has raised concerns about the recent 10% wage increase announced by the government, suggesting that while the government may have managed to implement this increment, the Ghanaian public is keenly observing the developments.

The government approved the 10% wage hike for employees in the public sector on Thursday, February 20 following successful negotiations between the Labour Union and the President, John Dramani Mahama, who personally engaged with the union to secure their support for the adjustment.

The rise marks the second adjustment in less than a year, with the last one occurring in 2024 when the erstwhile Akufo-Addo government approved a 23% increase aimed at addressing rising cost of living.

Minister of Labour, Jobs and Employment, Rashid Pelpuo in his announcement said the increment takes effect on March 1, 2025.

Speaking on The Big Issue on Channel One TV on Saturday, Prof Bokpin noted that the government may have gotten away with this increment but I think people are watching…We should take Ghanaians seriously. Government should take Ghanaians seriously.”

The economist emphasised that in recent years, certain aspects of wage negotiations have been influenced by factors beyond technical considerations, often linked to the government’s lifestyle. This has contributed to public sentiment and wage demands.

“People are watching, and the public sentiments, all of that feed into the wage demands for which reason organised labour will hold out for more because you can’t tell us we should fasten our belt when you don’t have a belt on in the first place,” he asserted.

Despite considering the 10% increase to be relatively small, Prof Bokpin noted the acceptance of this increment and urged everyone to return to work.

He highlighted the collective responsibility of increasing productivity, holding the government accountable, and ensuring that the government fulfills its part in the process.

“There is a part we also have to do in increasing productivity. There is a part we also have to do in terms of holding government accountable. There is a part that government also has to do in all of that,” he said.

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