Ministry of Finance urged to release funds to Labour C’ssion

The Parliamentary Select Committee on Employment, Social Welfare and State Enterprises has urged the Ministry of Finance to consider the role of the National Labour Commission (NLC) in fostering national peace on the labour front as an important national priority and timeously release funds to facilitate its operations.

It also recommended that adequate funds be made available to enable the NLC to build the capacity of its human resource, most of whom, it said, lacked the requisite knowledge and expertise in labour and industrial dispute resolution issues.

The recommendations were made by the committee in its report on the 2018 annual budget estimates for the NLC.

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Challenges

The Select Committee has also recommended a review of the Labour Act, Act 651, 2003 to make the NLC more responsive to current issues in the labour market.

The committee observed that the NLC had operated with various challenges since the passage of the Labour Act; and that currently, the commissioners work part-time and sit once a week, and it was not allowed to generate funds internally to support its operations.

It has no offices in the other regions and districts, apart from a small office in Takoradi manned by one staff.

Consequently, all cases from the various parts of the country have to be settled in Accra, which puts a lot of pressure on the commission and also creates difficulties for many complainants in other parts of the country.

“The NLC plays an important role in promoting national security and peaceful industrial environment. It is imperative for the commission to be given all the necessary support and the requisite resources to enable it to effectively pursue its mandate to the benefit of the country,” the report by the committee said.

Budget allocation

The committee further recommended that Parliament approves the allocation of GH¢6,277,229 million to the NLC for the 2018 fiscal year.

The commission was allocated a sum of GH¢2,863,532 million for the implementation of its programmes and activities in 2017.

The 2018 amount, which shows an increase of 119 per cent over that of 2017, saw compensation accounting for GH¢2,490.529 (39.7 per cent), compared to GH¢1,450,516 in 2017; goods and services GH¢2,786,700, against GH¢1,313,016 in 2017 and capital expenditure GH¢1,000,000, compared to ¢in 2017.

Following the presentation of the Budget Statement and Economic Policy for the 2018 financial year to Parliament by the Minister of Finance, Mr Ken Ofori-Atta, the annual budget estimates of the NLC were referred to the Committee on Employment by the Speaker, pursuant to Standing Orders (140(4) and 184) of Parliament.

Subsequently, the committee held a meeting with the Executive Secretary of the NLC, Mr Ofosu Asamoah, and his technical team on December 12, 2017 and considered the referral.

The NLC explained that the increase in compensation was to cater for the payment of salaries and related allowances of 41 personnel at post.

It is also meant for the replacement of three resigned staff and the recruitment of four personnel for the head office and six personnel for new offices to be established.

2017 performance

The report by the committee said as of October last year, the NLC had a little over 50 per cent of its total allocation released, with no release made for capital expenditure, which is said to have affected the NLC’s ability to expand infrastructure and procure critical office equipment.

This notwithstanding, the commission, on the average, was able to resolve 56 per cent of the cases it received.

“It is significant to note that 87 per cent of industrial disputes on issues that could have triggered industrial strikes were resolved by the commission. Furthermore, it received and paid a total amount of GH¢562,479.75 as compensation to beneficiaries following settlement of their cases,” the report said.

The committee recommended the effort of the NLC, particularly in areas of dispute resolution and industrial harmony, given the resource constraints within which it operated in 2017.

Outlook

The NLC will, in 2018, open three regional offices in Kumasi, Tamale and Sunyani and also revamp its Takoradi office; organise enterprise-based training on labour issues for identified sectors; and undertake sensitisation programmes for labour market players for effective labour/management cooperation.

It will also organise training programmes for its staff and strengthen the institutional capacity of the commission to enable it to effectively to manage industrial disputes. — GB