The Chief Executive Officer of Delax Finance and Leasing Company has taken a swipe at the Trades Union Congress(TUC), its member unions, and affiliated associations for what he describes as insensitive demands on government regarding wages, salaries and allowances.
According to Mr. Thompson the demands by various labour organizations is unjustifiable.
His assertion follows recent demand by some members of TUC demanding salary and wage increment.
The Civil and Local Government Staff Association of Ghana (CLOGSAG) is currently on strike demanding an increase in salary.
Speaking to Citi Business News, Mr. Thompson said government must be tough and deal with the over bloated government pay roll.
“The government must start with the public sector where it must inject efficiency. We know over the years that the public sector wage bill is over bloated but nobody has the political will to deal with that,” he said.
He warned that it is pertinent to assess how the country spends its income, particularly in the areas of recurring expenditures.
“The parties who have managed the economy have always been afraid to want freeze wage as that is a reality we got to face,” he said.
“If you are spending over 40% of your total income on wages, then you have a problem as a country,” he warned.
Mr. Thompson was of the view that the country must learn from the private sector where tough decisions are taken to reduce cost while increasing output.
He argued that government must ignore such demands from the labor union and rather institute a wage freeze which is likely to bring down the wage bill.
“So the one area we must protect is cutting expenditure which is important as government is the biggest player in that area. So government must reduce its expenditure and put a freeze on the wage bill,” he stressed.
Government is currently saddled with strikes from the Civil and Local Government Staff Association of Ghana (CLOGSAG), and the GHOSPA.
The last time GHOSPA went on strike, in August 2015, it was over unresolved issues with the Fair Wages and Salaries Commission (FWSC) on conversion differences after migration unto the Single Spine Salary Structure.
By: Norvan Acquah – Hayford/citibuisnessnews.com/Ghana