Dr Rashid Pelpuo, Minister of Labour, Jobs and Employment, has called for a public sector remuneration framework that balances fair wages with the fiscal capacity of the State.
He said public sector pay must be fair, decent and reflective of workers’ contributions to national development while remaining fiscally responsible and sustainable.
Dr Pelpuo made the call at the opening of a two-day stakeholder engagement between the Fair Wages and Salaries Commission (FWSC) and Organised Labour in Accra on the proposed transition from the FWSC to the Independent Public Emoluments Commission (IPEC).
The engagement is aimed at gathering inputs from Organised Labour on the draft IPEC Bill before it is presented to Parliament.
The proposed legislation would repeal the Fair Wages and Salaries Commission Act, 2007 (Act 737), and establish IPEC as the institution responsible for Ghana’s public sector compensation framework.
Dr Pelpuo said the proposed Commission provided an opportunity to strengthen the institutional arrangements for determining and managing public sector emoluments.
He, however, said the transition must be carefully managed to ensure that the new framework promoted fairness, independence, transparency, consistency and accountability.
“The transition must, however, be carefully considered to ensure that the new framework promotes fairness, independence, transparency, consistency and accountability,” he said.
The Minister described Organised Labour as a critical partner in national development and said its views and concerns must inform the proposed compensation framework.
“We must pursue an approach that links compensation to economic realities, productivity, public service performance and the ability of the state to meet its obligations,” he said.
Dr Pelpuo assured participants that their concerns and recommendations would be given due consideration in developing an effective and sustainable public compensation system.
Dr George Smith-Graham, Chief Executive Officer of the FWSC, said the transition to IPEC should go beyond changing the name of an institution and focus on establishing a stronger and more credible public sector compensation system.
He said years of implementing the Single Spine Pay Policy had exposed challenges including disparities in allowances and conditions of service, internal pay relativities, attraction and retention of critical skills, and the need to link compensation more closely to productivity.
“The proposed IPEC should therefore not be understood as a departure from the journey we have travelled. It should represent the next generation of public compensation governance,” he said.
Dr Smith-Graham said the stakeholder consultation was intended to shape the proposed legislation rather than simply endorse decisions that had already been taken.
“Our purpose is not to manufacture consensus where real differences exist. It is to understand those differences, test our proposals against evidence and build a compensation system that commands legitimacy across the public sector,” he said.
Mr Joshua Ansah, Secretary-General of the Ghana Trades Union Congress, speaking on behalf of Organised Labour, welcomed the proposed reform but called for a comprehensive approach to the process.
He urged the Government to involve Organised Labour throughout the reform process to ensure broad ownership and acceptance of the new compensation framework.
“We don’t want a situation where it will be a piecemeal approach. It should be a holistic approach so that what is good for the goose must also be good for the gander,” he said.
Mr Ansah said Organised Labour would closely monitor the reform process and collaborate with the Government to establish a fair, transparent and equitable public sector pay system.
The proposed IPEC is expected to oversee the determination and management of public sector emoluments under a framework anchored on fairness, transparency, consistency, accountability and fiscal sustainability.
