Sunday 10 August 2014

In Search of a Pay Policy- Ghana’s SSPP



In 2010 Ghana introduced a new public sector pay policy, the Single Spine Pay Policy (SSPP) to resolve 4 key concerns that had hounded public pay policies in the past. As restated by President Mahama in an address to the National Forum on the SSPP in August 2013, these concerns include pay disparities within the public sector; the rising wage bill; multiple pay negotiations and finally the disconnect between pay and productivity. The SSPP unlike the Ghana Universal Salary Structure (GUSS) which preceded it hinges on a single base pay and applies across all public institutions without the opportunity to opt out; this means internal disparities experienced with the earlier regime are technically removed while multiple negotiations become redundant. Further a Public Service Performance Management Monitoring and Evaluation system is reported to be in the offing to address productivity issues. Thus it would seem safe, albeit simpleminded to conclude that once “implementation challenges” currently engaging workers and the government are resolved, the SSPP would indeed achieve its stated objectives. Regrettably the SSPP's composition and policy prescriptions are unlikely to make it the panacea for Ghana’s public pay policy blunders.      

Take for instance the consequences for pay administration and labour relations imposed by the different “pay” components within the policy. Beyond core pay the SSPP offers 4 categories of “benefits and allowances”. While category 1 is now consolidated in the base pay all other categories are made out as separate payments. In category 2 are allowances such as for tools and overtime; funeral grants, entertainment, medical allowances, motor cycles etc belong to category 3 and finally category 4 allowances “associated with top management positions” include free accommodation, unlimited use of fuel and free utilities. Off course some of these motivational incentives may be justified within our socioeconomic context but others are clearly a continuation of the status based reward system inherent in previous public sector pay regimes that encouraged nepotism rather than productivity and growth. This is not unrelated to issues of proportionality between pay in the public sector qua public sector and so-called “Article 71” officers who are exempted from the SSPP.  
The SSPP also provides for “market premiums and inducements”. Inducements are allowances paid to “jobholders who work in underserved or deprived areas as defined by the FWSC”. No guidelines for implementation of this component are available yet as far as is known. Market premiums on the other hand are incentives paid for scarce skills. They are not subject to pay negotiations and are determined by government discretion within the constraints of the national budget. The April 2013 government white paper on market premiums provides that a scarce skill “is one that is in short supply relative to the demand for it in the labour market within a defined period as determined by government”. 

Undoubtedly the periodic revision of critical skills and definition of underserved areas is going to be a challenging game of chess but wrangling between government and workers and within workers’ bodies over which professions or positions make or drop off the list is likely to create more agitation on the labour front than is anticipated. Again as a non-negotiable variable incentive it is questionable whether the strategy will achieve the specific objective of making the government a more competitive employer on the labour market.
A more trying question that arises however is whether a legitimate industrial action may be grounded on any of the pay components as they stand. The case of the Polytechnic Teachers’ Association of Ghana (POTAG) makes an interesting example. POTAG and recently the University Teachers’ Association of Ghana (UTAG) are fighting for the reversal of a new Ministry of Education policy to replace research allowance, paid directly to teachers, with a central research support fund. The strike has been in place for months, causing polytechnics in the country to shut down. POTAG argues that the allowance was negotiated as part of their conditions of service. Though a court has ruled that the POTAG strike is legal; it is uncertain whether the research allowance is to be considered part of the basic pay of teachers, an allowance, incentive payment or a “work resource” within the logic of the SSPP; nor is it clear how that should impact the labour regime.    

In March 2010 Ghana Trades Union Congress (GTUC) warned in the GTUC Policy Bulletin Vol. 6 No. 1 that workers would accept the SSPP “only if it ensures fairness, transparency, consistency and logic in administration of the salary structure” and that the SSPP would suffer the fate of the GUSS otherwise. Perhaps that is a position that public sector pay administrators must revisit, as feverish efforts are being made to secure the survival and success of the policy.



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