CEOs demand clarity on pay harmonisation, board autonomy as FWSC engages SOEs bosses over IPEC transition

The Fair Wages and Salaries Commission (FWSC) held a meeting with CEOs of State-Owned Enterprises (SOEs) to discuss the transition to the Independent Public Emoluments Commission (IPEC). The event aimed to address the concerns of over 100 SOE executives, along with representatives from SIGA, Development Partners and the media. This is part of nationwide consultations following President John Dramani Mahama's declaration of the FWSC as an Institution in Transition in March this year.

Dr George Smith-Graham, the Chief Executive of the FWSC, highlighted that SOEs contribute significantly to the public sector wage bill and are crucial to the ongoing pay reforms. He emphasized that Ghana's current public sector remuneration system is fragmented, inequitable, and a major source of industrial relations tensions, particularly within the SOE sector.

The new IPEC is expected to provide an independent, professional and evidence-based framework for determining emoluments across all public sectors, including SOEs, while maintaining fiscal sustainability, transparency and equity.

During an open forum, some attendees expressed concerns about the impact of the new regime on their ability to attract and retain talent, the fate of existing Collective Agreements, and the degree of autonomy Boards would retain to set market premiums and allowances. Dr Smith-Graham reassured the participants that IPEC will not eliminate performance-based incentives but will instead streamline and harmonize them under a new National Emoluments Policy and a National Negotiation Framework.