Ghana’s parliamentary Minority has sharply criticized the government’s proposed 10% base pay increase for public sector workers, dismissing it as “woefully inadequate” in light of soaring inflation and economic pressures.
The backlash follows Thursday’s announcement of the wage adjustment, negotiated between labor unions and President John Dramani Mahama’s administration, which the Minority argues fails to address the realities of Ghana’s cost-of-living crisis.
Minority Leader Alexander Afenyo-Markin lambasted the offer during a parliamentary session on Friday, contrasting it with historic increments under the previous New Patriotic Party (NPP) government. “Public sector workers saw a 12.5% raise in 2017, 11% in 2018, 15% in 2020, and a compounded 19% in 2021. Last year alone, they received a 30% increase,” he stated. “Now, amid record inflation and economic stagnation, the government expects gratitude for a mere 10%? This is an insult to workers sustaining Ghana’s 24-hour economy.”
The Minority’s rejection underscores mounting frustration over stagnant wages as inflation persists at 23%, eroding purchasing power. Afenyo-Markin accused the government of disregarding workers’ “legitimate expectations” for relief, particularly after Mahama campaigned on revitalizing living standards.
In response, Majority Leader Mahama Ayariga defended the agreement, insisting labor unions had endorsed the 10% hike as a pragmatic compromise. “Their acceptance reflects confidence in the President’s fiscal prudence,” Ayariga asserted, taking a swipe at past administrations. “Workers trust that this government won’t squander taxes on frivolities but prioritize stability.” His remark alluded to longstanding public distrust of elite spending habits amid austerity measures.
The dispute highlights Ghana’s precarious balancing act between fiscal restraint and social equity. While the government leans on its IMF-backed economic recovery program to justify modest wage growth, critics argue austerity disproportionately burdens low- and middle-income earners. Public sector unions, though muted in their initial response, face pressure to escalate demands as household budgets buckle.
Economists warn that stagnant wages could further dampen productivity and consumer spending, complicating efforts to revive growth. “A 10% increase against 23% inflation means real incomes are shrinking,” noted Accra-based analyst Efua Mensah. “Without meaningful relief, labor unrest becomes inevitable.”
The debate also exposes political fault lines, with the Minority framing the wage issue as a litmus test of Mahama’s commitment to workers—a key demographic in the 2024 election cycle. As negotiations simmer, the government’s ability to reconcile fiscal targets with social equity will likely define both its economic agenda and its public credibility.
For now, Ghana’s public sector workforce—a backbone of the nation’s services—remains caught between promises of long-term stability and the urgent need to survive today.
