Govt, TUC to be in tango over salary

The government and labour are likely to be in tango over wage increases next year. The Minister of Finance, Mr Seth Terkper, told Parliament that it was likely there would be a freeze on wage and salary increases next year.

However, the Trades Union Congress (TUC) says the intended action of the government will not be countenanced. 

Wrapping up the debate on the motion for the approval of the 2014 Appropriation Bill in Parliament on Wednesday, Mr Terkper said the  government would be working with labour to develop a comprehensive set of measures in the national interest that would ensure moderation in the negotiation of wages and salary increases.

He said the comprehensive measures would include a possible moratorium on wages and salary increases.

TUC’s Reaction

The Secretary-General of the TUC, Mr Kofi Asamoah, told the Daily Graphic that though the union had not been formally informed, the moratorium would not be accepted because of the increasing high cost of living and other market indicators.

Mr Asamoah stated that should the proposal be accepted, the purchasing power of workers would be reduced.

He blamed the mismanagement of the payroll, which has resulted in the inclusion of ghost names, as the reason for the increase in the wage bill.

2014 Appropriation Bill

Parliament passed the 2014 Appropriation Bill to give the government the mandate to spend GH¢36 billion from the Consolidated Fund to meet its expenditure for the 2014 financial year.

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The bill was passed after the House had approved the budget estimates of all the ministries, departments and agencies, as well as the government obligations to statutory bodies for next year.

The passage of the Appropriation Bill is in accordance with Article 179 (2), which stipulates that "the estimates of all the expenditure of public offices and public corporations other than those set up as commercial ventures shall be classified under programmes or activities which shall be included in a bill to be known as Appropriation Bill".

The bill received unanimous approval from both sides of the House.

An amount not exceeding GH¢6.4 billion has been allocated within the 2014 Appropriation Bill to the District Assemblies Common Fund, the Ghana Education Trust Fund, the National Health Insurance Fund, the Road Fund, Petroleum-related fund, retention of IGFs fund and transfer to GNPC from oil revenue in the 2014 financial year.

This allocation is almost twice that of the 2013 allocation of GH¢3,344,571,086.00

The Finance Committee urged the Minister of Finance to ensure timely releases of these allocations, since the funds were committed to various projects and programmes.

The committee explained that delays in the releases of the various funds would have adverse effect on the smooth implementation and completion of programmes and projects they were intended for. 

The amount was unanimously approved by the lawmakers without any objection from any member of the House. 

In another development, the House appointed Egala Atitso and Associates as auditors to undertake the auditing of the Account of the Office of the Auditor General for the period between 2007 and 2013 in accordance with Article 187(15) of the 1992 Constitution.

The House adjourned sitting after passing the 2014 Appropriation Bill and is expected to resume for the Second Meeting of the Sixth Parliament on January 28, 2014.