2025 Salary Negotiations: Labour Demands 35% Increase as Government Offers 6% – Talks Adjourned to February 20

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Ellis Ferdinand
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Ferdinand | EducationGhana |  February 20| 2025 Salary Negotiations: Labour Demands 35% Increase as Government Offers 6% – Talks Adjourned to February 20

The 2025 salary negotiation between the government and labour unions remains unresolved as labour reduces its demand to 35%, while the government increases its offer to 6%. Talks will continue on February 20, 2025.

 

The 2025 public sector salary negotiations held on February 19, 2025, at the Ministry of Labour Conference Room, ended in a deadlock as both labour unions and government representatives failed to reach an agreement on wage increments for the year.

📌 Labour’s 60% Salary Demand Reduced to 35%

During the initial round of negotiations, labour unions demanded a 60% salary increase, citing rising inflation, increased cost of living, and economic hardships faced by workers. However, after deliberations, labour adjusted its demand to 35%, taking into account the government’s economic constraints.

Reasons Behind Labour’s Demand:


✅ High Inflation: With inflation fluctuating around 8%, labour insists that a significant wage increase is necessary to maintain workers’ purchasing power.


✅ Increased Cost of Living: Prices of goods and services have surged, making daily survival difficult for workers.


✅ USAID Support Reduction: Labour argued that the cut in USAID financial support to Ghana requires an alternative measure to cushion workers.


✅ Government Expenditure Cuts: The discontinuation of the E-Levy and COVID-19 Levy was also discussed, with labour stressing the need for increased salaries to compensate for reduced public funds.

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📌 Government’s Counteroffer – From 5% to 6%

The government initially proposed a 5% increase, which labour strongly rejected, deeming it insufficient in addressing economic challenges. Following extensive discussions, the government raised its offer to 6%.

Government’s Justification for 6% Increment:
✅ Fiscal Constraints: The Minister of Finance emphasized the need for expenditure control to prevent another round of debt restructuring.


✅ Sustainability of Wage Bill: The government argued that a significant wage increase could negatively impact the national budget and lead to potential layoffs.


✅ Inflation Control Measures: Government representatives explained that excessive salary increments could fuel inflation rather than stabilize the economy.

📌 Deadlock & Adjournment to February 20, 2025

Despite back-and-forth deliberations, both parties failed to reach a consensus. As a result, the negotiation was adjourned to Thursday, February 20, 2025, at 9:00 AM.

Next Steps:
📍 Labour will consult its members to determine the next course of action.
📍 Government will review its fiscal capacity and possibly revise its proposal.
📍 Both parties are expected to present fresh arguments to find a middle ground.

📌 Projected Outcome of February 20 Meeting

🔹 Potential Compromise: There is speculation that the government may increase its offer to 10-12%, while labour unions might further reduce their demand to 25-30%.
🔹 Risk of Industrial Action: If negotiations fail, labour unions may consider strike actions, leading to nationwide disruptions.
🔹 Public Interest: The outcome will directly impact public sector workers, affecting their disposable income and economic well-being.

📌 Conclusion: What to Expect in the Next Round of Negotiations

As the government and labour unions return to the table on February 20, 2025, all eyes will be on whether a fair and sustainable agreement can be reached. Will the government improve its offer? Will labour unions accept a lower increment? The next round of discussions will be crucial in determining the fate of public sector wages in Ghana.

🔔 Stay tuned for updates on Ghana’s 2025 Salary Negotiations!

📢 What do you think? Should the government offer more, or should labour unions reconsider their demands? Share your thoughts!

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