Colonial Wage System Responsible for Ghana’s Low Salaries – TUC

Accra: The Deputy Secretary-General of the Trades Union Congress (TUC), Dr. Kwabena Nyarko Otoo, has highlighted that Ghana's enduring issue of low wages can be attributed to wage practices initiated during the colonial era. Speaking on Joy FM, Dr. Otoo shed light on how these historical wage systems continue to affect the present economic landscape of Ghana.

According to Ghana Web, Dr. Otoo explained that colonial employers intentionally kept wages low, operating on the belief that workers would abandon their jobs once they had earned enough to meet their financial goals. Historical accounts reveal that some Ghanaian workers who received higher wages managed to save money and leave their employment within approximately six months. This phenomenon of early financial independence led to labor shortages, prompting employers to lower wages further and extend the duration over which workers earned their pay.

Dr. Otoo elaborated on this strategy, noting that wages that could have been disbursed over six months were deliberately stretched to a year. This practice was implemented to ensure that workers remained employed for longer periods, making it difficult for them to achieve their financial objectives swiftly. Despite the end of colonial rule several decades ago, the foundational wage structure designed during that era persists within Ghana's labor system, perpetuating low earnings and affecting the cost of living for many Ghanaians.