Govt Cannot Increase Salaries - President

.... Let us adhere to fiscal discipline
President John Agyekum Kufuor on Thursday urged workers to continue to adhere to the fiscal discipline needed to ensure the continued macro-economic stability required for sustained and accelerated growth.

That way whatever increases in income achieved would be real and not undermined by high inflation, he said.

President Kufuor made the call when he addressed this year's May Day Rally of workers at the Independence Square in Accra.

He said it was government's interest that workers were well paid because dividends for good governance were measured in the spread of wealth among the people.

"That is what this government works at everyday; so please keep faith with us and let us reach our goal together. This way it will be sooner rather than later," he said.

The Day celebrated worldwide as workers' day of solidarity, represents a unique symbol of achievement for workers. It is being observed locally under the theme: "Democratic Workers' Participation And Improving Incomes: Dividends Of Good Governance."

President Kufuor paid homage to Ghanaian workers for the admirable way in which they had responded to the very difficult decisions government had to take.

He said government was aware of the harsh economic conditions that existed in the country and it was its belief that people were putting up with the ardent difficulties because they believed that the harsh decisions would ensure a better future for all.

President Kufuor said government had accepted that this had placed great responsibility on it to conduct the affairs of the nation competently and as transparently as possible.

"Thus as far as is humanly possible, government has kept faith with the people and would continue to do its level best to keep to this path."

President Kufuor said the proof of the good faith of the government was in its determination "to grab the bull by the horns" and to pursue harsh but necessary policies when many other governments would have opted for easier and more convenient ones.

President Kufuor said such determination by the government to pursue a true transformation of the economy led to the painful decisions to increase the prices of petroleum products and utility tariffs.

He said short-term convenience was not the way for the government, especially when it came to matters of national importance. With these basic re-alignments of prices in place, it should be easier to plan and manage the economy better.

President Kufuor said the establishment of the Public Utilities Regulatory Commission (PURC) and the National Petroleum Tender Board (NPTB) would ensure the mechanism for gradual and manageable changes in prices instead of the periodic unpredictable and upsetting dramatic increases of tariffs and
prices.

Referring to the increases in the tariffs recently that led to widespread demands for salary increases and the tensions in the labour front, the tripartite negotiations, President Kufuor appealed for the mutual trust that had existed between the government and workers to remain.

"We must all appreciate that when the economy thrives all sides win, workers, employers and government alike."

President Kufuor said there was always a gestation period for policies to mature before any gains become evident especially at the individual citizen's level, adding: "There can be no short cut to this fact of life".

He said it was in everybody's interest that the Ghanaian workforce became skilled and healthy, because it was only then that the nation could be competitive in the international marketplace and be a more attractive investment destination.

President Kufuor said for the workforce to get the modern skills required, employers must invest in the workers and be willing to fund training schemes and the workers must have the urge to improve themselves and have interest in increasing productivity.

"Above all, there must be agreement all round that when businesses do well, the whole of society benefits. A successful and thriving business enterprise should be seen as benefiting workers and entrepreneurs especially and the society above all.

"I am sure all of us agree that it takes time and sacrifice to achieve and realise this success. My appeal, therefore, is that we must all be purposefully patient."

Mr Kwasi Adu-Amankwaa, Secretary General of the Trades Union Congress (TUC), called on the various Unions under the TUC to develop a united front and struggle to overcome the difficulties posed by the present day conditions of workers.

He said this year's celebration was dedicated to renew their commitment to the struggle for better incomes for Ghanaian workers to promote growth and productivity on one hand and equity in wealth distribution on the other.

The Secretary-General said fixing the national minimum wage was important because it was a means of raising incomes and combating poverty.

He, therefore, called on all employers, particularly those whose workers were not organised to take due account of the national daily minimum wage of 9,200 cedis in fixing the wages of their workers.

Mr Adu-Amankwaa reminded the government of the need to give legislative backing to the national minimum wage in order that it could truly play its role of acting as a safety net for the vulnerable and unprotected workers.

"We dare say that working people would love to see a genuine improvement in their incomes as a dividend of democracy and good governance, for when the people clamoured for democracy and change it was also an expression of dissatisfaction with their material conditions and a cry for an improvement in their living standards."

Eighteen workers, who excelled in their various places of work, were honoured and received their awards from President Kufuor.