Govt, Organised Labour agree on 30% base pay increase

Government has agreed with Organised Labour to increase the base pay for the 2023 financial year by 30 per cent.

The increment takes effect from January 1, 2023.

This follows a meeting with Organised Labour on Thursday, January 12 after ten unsuccessful negotiations between both parties.

“The base pay has been increased by 30 per cent for the 2023 financial year…As I said this brings to an end the 2022 COLA of 15 per cent of base pay salary,” Employment Minister, Ignatius Baffour-Awuah announced shortly after the decision was taken.

At the beginning of negotia­tions for the base pay, Organised Labour demanded a 60 per cent increment and refused to back down on their demand despite several engagements with govern­ment.

After refusing government’s initial proposal of 18 per cent, the public sector workers decided to reduce their initial 60 per cent demand to 58 per cent.

However, after Thursday’s meeting with government which included Finance Minister, Ken Ofori-Atta, who had been absent from all the previous meetings, Organised Labour agreed to a 30 per cent increase in the base pay, although they had vowed not to back down on their demand.

The General Secretary of the Trades Union Congress (TUC), Dr Yaw Baah, expressed gratitude to government for this new develop­ment.

“The Leadership of Organised Labour would like to express our sincere thanks to government for granting 30 per cent increase in base pay for 2023 for public sector workers. We are happy that it has ended peacefully today.

“The 30 per cent even though it is not what we want, it will create that opportunity for us to speak one language to work together,” he added.

Executive Secretary of Civil and Local Government Staff Association, Ghana (CLOGSAG), Dr Isaac Bampoe-Addo, told the government delegation that “we want to assure government that we will collaborate with them and come up with ideas to improve the revenue generation. We know the next time we meet for base pay ne­gotiations, it will be a better story.”

The Finance Minister at the meeting noted that the increment would put a strain on the country’s finances.

“As I mentioned this will take a toll on the budget, but we are confident that we would enhance productivity and the commitment that we both have given to each other to make sure that there is peace in this country as we look at pension and labour issues.”

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