• Thu. Sep 29th, 2022

Minimum wage should be pegged at a rate businesses can afford – Employers Association

The Ghana Employers Association has requested the Tripartite Committee to set a suitable minimum wage rate for firms.

Businesses will collapse, according to the Association’s Chief Executive, Alex Frimpong, if the increase is too high for them to bear.

Mr. Frimpong said it would be difficult for employers to sustain compromised percentages that could cause enterprises to collapse in an interview with Evans Mensah on Newsnight on Monday.

“Businesses are facing difficult times, and we may need to set the minimum wage at a level that they can afford.” If the rate is such that it is impossible for firms to reward labor, it will jeopardize the long-term viability of the business, and employers will find it difficult to embrace such a notion,” he said.

The tripartite committee, which includes representatives from the government, organized labor, and businesses, is gathering to finalize compensation negotiations ahead of the May Day celebrations.

The payment of public sector wages consumes thirty billion cedis, or over half of the country’s earnings.

However, as the economy struggles, labor organizations are demanding adequate pay to deal with the current situation.

Meanwhile, organized labor has urged that the government establish the minimum wage for this year at or above the inflation rate of 19 percent.

Dr Yaw Baah, the General Secretary of the Trades Union Congress, declared this at a labor event in Accra last Thursday.

“We will ensure that the minimum wage for workers this year does not fall below inflation, and this will be extended to public sector workers as well,” he stated. “There is a battle ahead of us, and I can see organized labor is ready to fight, and we will do so,” he added.

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