Labour Minister Pelpuo Urges Consideration of Full Picture Amid Tariff Hike Debate

Labour Minister, Dr. Rashid Pelpuo, has urged calm amidst growing public concern over recent tariff increases and their impact on the newly agreed-upon base pay. He emphasized the need for a broader understanding of the economic factors at play.

Speaking on Joy News’ PM Express on December 9, Dr. Pelpuo stated that the government is closely monitoring the situation and actively engaging in dialogue with both labour unions and the Public Utilities Regulatory Commission (PURC). “Government is very curious about what is going to happen. We are watching, and we are speaking to the public. We are speaking to labour as well, and we want to make sure there’s a close understanding of what has happened,” he said.

The Minister stressed the importance of continued collaboration, noting that “labour continues to work as effectively as we know them to be doing, and government will continue to honour the promises we have made to them.” He specifically encouraged further conversation between the PURC and labour representatives, stating the government is hoping for “a conclusive situation where they understand each other very closely.”

Dr. Pelpuo further explained that the government’s capacity to intervene financially is limited, given the potential consequences for the national budget. “Government’s intervention will have a long-term effect. It will result after a long period of running a budget which has just been approved or which is just going to be approved,” he stated. “And so changing in figures there will have a consequence of having a total effect on the figures that we put out already.”

He expressed hope for a resolution through dialogue, saying, “We are praying that this thing will be solved soon, that we don’t have to intervene in any form that will offset the situation PRC is putting across or that will unbalance the labour demands.” He added that government is “out there making sure that we play a positive role in getting labour to understand and be able to move.”

Acknowledging the sacrifices Ghanaians often make for the collective good, Dr. Pelpuo praised the labour force for its past cooperation. “In fact, we have always been lucky. I’ve always been lucky to see that labourers not just want to walk along, but are also willing to sacrifice a little, which is normal for every Ghanaian to do now,” he noted. He further commended their understanding even during economically challenging periods.

Recalling briefings held at the start of the administration, Dr. Pelpuo said the government was upfront about the economic challenges it faced, and labour representatives were receptive. “When we took over this economy, we told them the challenges we were facing…and they get to understand the situation and were willing to go along with this.”

The Minister highlighted the core budgetary issue at stake: “Should we spend 47% of our total revenue on compensation for people who are less than 1 million, or should we increase it to 50% or 65%?” This decision, he specified, is contingent on the salary increase requests from labour.

Addressing concerns that tariff hikes negate the benefits of the base pay increase, Dr. Pelpuo cautioned against framing it as a “short change,” but rather as a question of the overall impact on workers. He posed the question, “Is [the tariff increment] going to be a direct consequence of deliberately hurting the income of workers and creating a problem for them?” adding that consideration must be given to mitigating factors.

He urged the PURC to explore avenues to ensure workers do not feel disadvantaged, stating, “How can the PURC have a conversation that will result in workers not feeling short-changed?” He explained that the 9.8% agreement reached followed a thorough consideration of various indicators by the PURC.

Dr. Pelpuo concluded by encouraging workers to view the situation positively. “So I think that it shouldn’t be looked at in a negative form,” he urged.

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