Reduce utility tariffs *Organised labour gives PURC, govt ultimatum

BY EDMUND SMITH-ASANTE

Mr Kofi Asamoah

Organised labour has given the Public Utilities and Regulatory Commission (PURC) and the government 10 working days to slash the recent tariff increases.

The group warned that it would be forced to resort to industrial action if the ultimatum was brushed aside.

The workers’group categorically asked the government, the PURC and the utility companies to divide the payment of the 78.9 per cent and 52 per cent adjustment in electricity and water tariffs, respectively, into three within the time frame given and consumers made to pay only a third this year and the same proportion in subsequent years.

Mr Kofi Asamoah, the Secretary General of the Trades Union Congress (TUC), gave the ultimatum at a press conference on the recent upward adjustment in utility tariffs in Accra yesterday.

Organised Labour

Ghana’s organised labour is made up of all the 18 national unions under the TUC, the Ghana National Association of Teachers (GNAT), University Teachers Association of Ghana (UTAG), Polytechnic Teachers Association of Ghana (POTAG), and National Association of Graduate Teachers (NAGRAT).

Others are the Ghana Registered Nurses Association (GRNA), Ghana Medical Association (GMA) and the Ghana Federation of Labour (GFL) among other workers’ groups.

Reading a statement from organised labour, Mr Kofi Asamoah said “Already consumers on the prepaid meters are paying the announced increases when their 10 per cent salary increase back pay is yet to be implemented.”

He said the PURC and the government had failed to heed their request to stay implementation of the increases and open genuine dialogue on the energy and water sectors, a development which left organised labour with little choice but to implement their own road map to get the tariffs to levels consistent with the incomes of Ghanaians.

Ultimatum

“But before that, we are giving the PURC and government a 10-day ultimatum to slash the tariff increases to one-third. We also ask for an elaborate plan for payment of the differentials of the 10 per cent salary increase before the end of 2013,” Mr Kofi Asamoah said.

The TUC Secretary General said workers and indeed Ghanaians were no longer prepared to accept the usual excuse that the increases were needed to allow for adequate and efficient delivery of utilities.

“Our analyses of the electricity and water situation in the country do not suggest to us that what the utility companies need is mere rooftop increases in tariffs. The past increases clearly give away the lie that tariff increases will help improve the quality of service,” he said.

Investment and efficient management

“We fail to understand the rationale for such astronomical increases when government was only able to increase salaries by a mere 10 per cent. And in addition, the government has failed to outline any concrete measures to pay workers the arrears that flow naturally from the 10 per cent increase in salaries.

 “Organised labour has held consultations with government, the utility companies and industry. We have affirmed our position that we are not against increases in utility tariffs per se but what we are opposed to is the level of increases.

“We have made it clear to government that the prevailing income levels in the country do not allow us to pay such exorbitant increases. We simply cannot afford to pay,” Mr Kofi Asamoah added.

Writer’s Email: Edmund.Asante@graphic.com.gh

Fact Sheet

• When the last huge tariff increases were made in 2010, stakeholders agreed on the need for regular reviews and adjustment based on the Automatic Adjustment formula (ATF).
• It was the view of stakeholders that such regular reviews and adjustments would obviate the need for one-off super increases that erode incomes and make life unbearable for most Ghanaians.

This story was first published by the Daily Graphic on October 9, 2013