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

The Fair Wages and Salaries Commission (FWSC) convened a meeting with chief executive officers from numerous State-Owned Enterprises (SOEs) to discuss the transition to the Independent Public Emoluments Commission (IPEC). The gathering included over 100 SOE executives, as well as representatives from the State Interests and Governance Authority, development partners, and the media.

This event is part of a series of nationwide consultations that began following President John Dramani Mahama's designation of the FWSC as an Institution in Transition in March.

During the meeting, Dr. George Smith-Graham, the Chief Executive of the FWSC, emphasized that SOEs constitute a substantial portion of the public sector wage bill and are pivotal in the ongoing pay reforms. He described the existing public sector remuneration system as fragmented and inequitable, contributing significantly to industrial relations tensions within the SOE sector.

Dr. Smith-Graham assured that the new IPEC would provide a professional, evidence-based framework for determining public sector emoluments, including those of SOEs, while ensuring fiscal sustainability, transparency, and equity.

However, some attendees raised concerns about the implications of the new regime on attracting and retaining talent, the future of existing Collective Agreements, and the level of autonomy that Boards would retain in determining market premiums and allowances. Dr. Smith-Graham addressed these concerns during an open forum, clarifying that the IPEC would not eliminate performance-based incentives.

Instead, the new system would streamline and harmonize them under a new National Emoluments Policy and a National Negotiation Framework.