President John Dramani Mahama has reaffirmed his administration’s commitment to improving the conditions of service for Ghanaian workers, despite the economic challenges facing the country.
Addressing a crucial meeting between the government and all labour unions on the negotiation of the minimum wage and base pay, President Mahama assured union leaders of his dedication to fostering better working conditions while balancing the economic realities of the nation.
Following extensive deliberations, both parties reached a consensus on a 10% increment in the minimum wage for 2025.
While acknowledging that the increment may not meet the full expectations of workers, President Mahama emphasized the necessity of economic prudence to ensure long-term stability and growth.
In his address, President Mahama painted a stark picture of the economic crisis inherited by his government, describing the situation as one of financial mismanagement and recklessness by the previous administration.
“Comrades, you know we are your natural allies, and we’ve worked together for many years. One thing that is a cardinal principle for us is to tell the truth at all times. We all knew the economy was in crisis, but some of the things I’m discovering myself, I mean, it’s been a criminal handling of our economy.
“Ghana is a crime scene, actually, because how a government could have been so reckless, I cannot understand. But we’re faced with the reality”.
President John Dramani Mahama
While criticizing the economic mismanagement, he acknowledged that his government had limited options.
He stressed the importance of making strategic decisions that would prevent further deterioration of the economy while protecting Ghanaian households from the adverse effects of drastic austerity measures.
Belt-Tightening Across the Board
President Mahama underscored the need for government-wide belt-tightening, revealing that he had instructed Finance Minister Dr Cassiel Ato Forson to aggressively cut unnecessary expenditures.
“I’ve told the Finance Minister to cut expenditure as much as he likes. Even we ourselves in the office of government machinery—I urged him to cut as much of our budget as he liked because we all must make those sacrifices”.
President John Dramani Mahama
The President acknowledged a growing distrust of politicians, noting that while ordinary citizens were being asked to tighten their belts, politicians had often been perceived as living extravagantly.
“A certain distrust of the political class has arisen because it’s like when everybody else is tightening their belts, the political class is loosening its belts. But I want to assure you that we’re all going to tighten our belts. And there will be no wasteful expenditure”.
President John Dramani Mahama
He used a metaphor to illustrate the gravity of the situation, stating, “It is said that we create and share, and so let’s start cooking the meal now so that we can share when we have created. But right now, the meal is not only insufficient, the cooking pot is even leaking.”
Labour’s Role in the Recovery Process
President Mahama appealed to labour unions to exercise patience and restraint as his government implements corrective measures.
He called for a collective effort to stabilize the economy before considering more substantial wage increments in the future.
“I’ll just appeal to you that let’s temper our demands for this year. And once we get out of the woods, we’ve set good targets to bring inflation down so that the cost of everything will come down. We’ve set targets to grow the economy to make things better, and when the take is big, then it’s bigger, we’ll share bigger.”
President John Dramani Mahama
President Mahama proposed the establishment of an independent committee responsible for determining salaries at all levels of government, from the President down to ordinary workers.
“We are proposing an independent emolument committee that would set the incomes for everybody, from the president right down to the ordinary labourer. We are prepared to walk this journey with you. But I just appeal to you that let’s reach an agreement on this one.”
President John Dramani Mahama
The President called on all stakeholders to view 2025 as a “year of correction,” stressing that sacrifices made in the short term would lay the foundation for sustainable economic growth.
“So that we use this year as the year of correction. And then after we’ve corrected, we’ll see how the economy continues to go.
“Once the economy moves in the direction that we are all hoping for, if we have an independent money-masscom committee, maybe if you suggest 35%, I’ll support you because it will affect my pay too.”
President John Dramani Mahama
While many labour leaders welcomed the 10% increment as a step in the right direction, some expressed concerns that it might not be sufficient to cushion workers against the high cost of living.
As Ghana grapples with economic recovery, the coming months will be critical in determining whether the current administration’s strategies will yield the desired stability and growth.
The proposed independent wage committee, if successfully implemented, could mark a turning point in how government salaries and worker remuneration are structured in Ghana.
President Mahama’s commitment to fiscal discipline, transparency, and inclusive economic policies will be tested as he navigates the complex task of balancing national development with the demands of workers who are eager for improved conditions.
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