Business News of Friday, 3 May 2013

Source: B&FT

Senior citizens need social protection - TUC

Government has been urged to make social protection of senior citizens one of its core priorities since the country has enough resources to take good care of them.

“We propose Basic Income Grant for all people who are 60 years and above who are not on pension, and that the Basic Income Grant should at least be equal to the inflation-adjusted nutrition-based national poverty line and should be increased on a regular basis in line with the increase in cost of living,” Kofi Asamoah, General-Secretary of the Trades Union Congress (TUC), said in an address read for him at this year’s May Day celebration at Essipong in the Western Region.

He said studies have shown that Ghana, like many other developing countries, can provide adequate social protection for its vulnerable citizens with less than 3 percent of its Gross Domestic Products (GDP).

“Assuming we pay each of the 1.6 million old people (according to the 2010 National Population and Housing Census data) GH¢100 per month, Ghana will spend Gh¢160 million per month or GH¢1.9 billion per annum, which is just 2.6 percent of our 2013 GDP,” he said.

He said a Basic Income Grant for senior citizens is achievable and they deserve it, adding that “what we need now is the political will and a visionary leadership.”

He said the low level of pensions is a reflection of the low pay in the country, and “it is regrettable to note that Ghana ranks among the lowest even on the poor African continent in terms of pay levels.”

He said the Single Spine Pay Policy was designed to reduce inequality within and across public sector institutions and to bring public sector pay administration firmly under the control of government through the Fair Wages and Salaries Commission.

“We have made some gains in the last three years in terms of salary increases for public sector workers; however, we feel very sad to note that public sector pay has now come under incessant attacks from some politicians.”

He said the union’s proposal is that all public office holders specified under both articles 71 and 190 of the 1992 constitution be placed on the Single Spine Salary Structure.

He said the union believes the public sector can improve its performance further if corruption is reduced and fairness is introduced in public sector pay administration.

“The effective way to improve pensions is to improve wages. Let us all work together for fairer pay and improve productivity in the public sector for economic growth and development,” he said.