The Industrial and Commercial Workers Union (ICU) has warned of an imminent industrial action in 2016 if the Public Utilities Regulatory Commission (PURC) implements its proposed 100 per cent hike in utility tariffs.
The General Secretary of the ICU, Mr Solomon Kotey, told the Graphic Business in an interview that the posture of labour would change if the government ‘dares’ implement the utility tariff increase, as proposed by the PURC.
Explaining further, he said during their negotiations with government they proposed for more salary increment to cushion workers should the PURC come out with its proposal to increase tariffs but government refused.
“Therefore should the government agree to PURC’s current demands we would have to pressure the government to increase salaries,” he added.
Meanwhile, the government and labour are anticipating a calm industrial front in 2016 as they conclude wage negotiations and other allowances to be captured in the 2016 budget ahead of the political campaigns that promise to be a close contest.
“Now that we are resisting the implementation of the 120, 200 per cent hike in utility tariff proposed by the PURC, if government dares go ahead to implement it, it will then make the posture of labour change in 2016,” he cautioned.
ICU accepts 10% wage increase
Already, the ICU, a wing of the Trades Union Congress (TUC), has accepted the outcome of the 2016 wage negotiations.
Mr Solomon Kotey told the GRAPHIC BUSINESS that although the outcomes of the negotiations were not satisfactory, they were acceptable.
“Labour will never be satisfied with the outcome of the tripartite, but when you are part of a committee and a decision is made you do not come out to say you did not agree with the final decision,” he said.
“It was not imposed on us but we had to accept it because challenges from employers are such that if you demand more, employers will not be able to pay. Labour was not happy with the 10 per cent increment but fortunately this time round they listen to us more and appreciated where we are coming from,” he added.
Wage demands and budget Finance Minister, Mr Seth Terkper, is excited that a lot of the sticky demands by the labour unions have been agreed on by the Tripartite Committee.
In an interview with the Graphic Business, the minister said, “Luckily, some labour demands on increment on salaries will be captured since there have been series of negotiations that have provided the framework for the budget.”
“The substantial ones have been concluded and we are just working on some allowances,” he added. Earlier this month, government agreed on a 10 per cent base pay increase for public sector workers for 2016, as recommended by the tripartite committee.
The tripartite committee also raised the minimum wage from GH¢7.00 a day to GH¢ 8.00 a day. The early public sector wage agreements brokered by the tripartite committee represent a marked departure from the norm when the country’s industrial front is plagued with workers’ agitations for raise in salaries and improved working conditions.
Maintaining fiscal discipline President John Dramani Mahama is also keen on maintaining fiscal discipline and has pledged to avoid the temptations of unbudgeted spending associated with the political life cycle.
He has indicated that he will not authorise any expenditure on wages not provided for in the budget for both workers and Article 72 office holders.
"And I want to say for emphasis I will not authorise any expenditure on wages and compensation not provided for in the budget. Fiscal discipline requires that not a single pesewa is spent on remuneration outside what has been budgeted for and this goes for both Article 71 Office holders and those on the single spine. It goes for the president as well as the lowest public sector employee. I am determined to toe the line, no matter the political cost," he said.
This sets the tone for a peaceful and calm industrial front in 2016 as the political parties criss-cross the country in a heated political campaigning that promises to be a close contest between the ruling National Democratic Congress (NDC) and the main opposition New Patriotic Party (NPP).
Now that we are resisting the implementation of the 120, 200 per cent hike in utility tariff proposed by the PURC, if government dares go ahead to implement it, it will then make the posture of labour change in 2016.
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