Ghana’s low-wage structure rooted in colonial labour system — TUC’s Dr Otoo

Dr Kwabena Nyarko Otoo, Deputy Secretary-General of the Trades Union Congress (TUC), has pointed out that Ghana's low wages stem from labor practices introduced during the colonial era. On Joy FM's Super Morning Show on August 25, Dr Otoo highlighted historical evidence indicating that workers who were initially paid high wages managed to meet their financial targets, save money, and quit their jobs within around six months.

This labor shortage, despite the presence of job opportunities, led colonial employers to lower wages in order to retain workers for longer durations. The British believed that when Ghanaian workers received high pay and achieved their targets within six months, they would discontinue work. Consequently, colonial employers extended the payment period to one year, resulting in the current low salary structure, according to Dr Otoo.

He added that this colonial wage policy compelled employees to remain in their jobs for extended periods as they struggled to meet their financial objectives, which helped employers maintain a consistent workforce. Despite the end of colonial rule, Dr Otoo argued that the low-wage structure established at that time remains entrenched in Ghana's labor market, contributing to the consistently low earnings of many workers. Dr Otoo appeared on the show to address the cost of living in Ghana.