Linking pay to productivity is not meant to punish workers – Fair Wages CEO
The Fair Wages and Salaries Commission has urged Organised Labour to place productivity at the centre of future wage negotiations as Ghana continues to face economic challenges and growing public dissatisfaction with service delivery.
Speaking at a symposium organised by the Management Development and Productivity Institute (MDPI) in Accra, the Commission’s Chief Executive, Dr. Smith Graham, emphasised that the country can no longer sustain a system where demands for higher salaries are not matched by improved performance and efficiency.“
Linking pay to productivity is not meant to punish workers,” Dr. Graham stated.
“Sustainable compensation systems that tie rewards to output are essential for national development.
The goal is to create a fair and balanced framework where better performance leads to better rewards, greater accountability, and stronger economic growth.”
His comments come at a time of rising living costs, frequent labour agitations, and persistent concerns about inefficiency, absenteeism, poor work attitudes, and weak accountability within the public sector.
Despite the introduction of the Single Spine Pay Policy in 2010, many Ghanaians still experience slow and unsatisfactory service delivery from public institutions.
Dr. Graham called on both labour unions and public sector leadership to move away from excessive bureaucracy and adopt productivity-oriented negotiations.“
We must build responsive institutions that reward performance rather than paperwork,” he said.
The Commission had earlier initiated discussions with Organised Labour on formally linking pay to productivity; a proposal both parties reportedly accepted in principle.
However, implementation has been slow due to limited commitment and practical challenges.
Also addressing the symposium, the Minister for Labour, Jobs and Employment, Dr. Rashid Pelpuo, underscored the critical role of productivity in reviving Ghana’s economy.
Similarly, MDPI Director-General, Professor Elijah Yendaw, described productivity as a powerful tool capable of transforming the nation’s fortunes.
The event brought together labour leaders, policymakers, public servants, and development experts to explore practical strategies for improving efficiency and accountability in the public service.
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