UN Global Compact Network Ghana Living Wage Conference opening remarks by UN RC

I am honored to be here today as we convene to discuss a matter of paramount importance – the advancement of the living wage agenda in Ghana. On behalf of the UN family in Ghana, I extend my heartfelt gratitude to the UN Global Compact Network Ghana and all our partners for organizing this pivotal conference.

Appreciation and reflection on the theme

The theme for today’s conference, “Moving Forward Faster: From Minimum to Living Wages,” resonates deeply with the United Nations’ mission to promote decent work and economic growth. It is a timely call to action, especially in the face of the current economic crises affecting nearly every country, which have forced more workers into precarious situations in the workforce.

According to the ILO “Living wages aim to give workers a decent standard of living and enough pay to afford basic needs like food and housing.” A living wage is not just a matter of fair compensation; it is a fundamental human right and a cornerstone of development. Minimum wages are a basic floor to prevent extreme exploitation, while living wages ensure a dignified life. It directly contributes to several Sustainable Development Goals, particularly SDG 8, which promotes inclusive and sustainable economic growth, full and productive employment, and decent work for all. Ensuring a living wage is crucial for fostering a healthy economy and an environment where everyone can thrive.

Today's gathering brings together a diverse group of stakeholders, including representatives from the International Labour Organisation (ILO), the Ministry of Employment and Labour Relations, the Fair Wages and Salaries Commission, the Trades Union Congress Ghana, the Ghana Employers Association, and many others. Your presence here underscores the collective commitment to addressing the challenges and barriers to achieving living wages in Ghana.

Importance of the Ghana Living Wage Conference to the UN

I am informed that this Conference will serve as a platform where all relevant stakeholders, including governments, employers, workers, international organizations and other civil society actors, will share insights on the subject matter with the goal of steering Ghana into the direction it ought to be taking for improving the lives of workers in Ghana.

The Conference holds significant importance to the United Nations and our overarching mission.  The views and outcome of this conference will help define the concept and our estimation of what living wage should look like in Ghana. This issue aligns with UN’s goal of ensuring decent jobs for lower income and disadvantaged groups, including those affected by factors such as gender, age, disability and geographic location. Jobs and social protection are critical enablers for accelerating the SDGs in Ghana, and your actionable insights will undoubtedly enhance discussions on improving the living standards of the Ghanaian people.

The importance of securing living wages

Securing living wages has become increasingly crucial in Ghana in light of the COVID-19 pandemic that plunged the world, including Ghana, into global financial and economic hardships, as well as ongoing and persistent high inflation in country. The country experienced a substantial inflation rate of approximately 54% in 2022, which remained high at 23% in 2023. This year, inflation is also expected to be around 20%. To make matters worse, increasing inflation rate has been seen more in essential goods and services than non-essential items. However, the legal minimum wage has increased only 22%, from daily 14.88 ghc in 2022 to 18.15 ghc in 2024, which is far behind the pace of inflation rate. Due to this, more and more people have a difficulty in ensuring minimum living standards. Thus, living wages might be a game changer for improving the lives of low-income groups.

Despite a tripartite agreement among Governments, Employer’s and Worker’s organizations on the need to establish a living wage, the specific estimates of living wages vary depending on estimation methods and remain controversial among stakeholders, leading to delays in establishing living wage in Ghana. In this respect, I hope this conference will serve as a starting point for discussions and lead to firm and decisive decisions that take account of all the different complex dimensions required – addressing both improved productivity, competitiveness and incentives simultaneously. ILO especially has much to contribute to this debate, bringing in best practice from across the globe.

UN support 

Ladies and gentlemen,  In our efforts to ensure Inclusive and Sustainable Economic Growth and Transformation, being one of the three pillars of the UN Sustainable Development Cooperation Framework, the the United Nations in Ghana spent a total of 19.1 million dollars so far in this CF cycle on interventions targeting decent work and economic growth. Our activities on this include but not limited to: 1. technical and vocational education and training (TVET) 2. Supporting MSMEs, 3. Advocating for Inclusive Labor Policies, introducing Human Rights to the Business community and 4. Social Protection Programs. Programmes have been implemented by many agencies including ILO, UNDP, UNFPA, UNICEF, WFP, UNCDF, FAO - among others. The ILO - through the Productivity Ecosystems for Decent Work project - has been supporting two key industries - garment manufacturing and agro-processing of shea - through industrial advisory, skills development, access to markets and Occupation Safety and Health to improve productivity and hence wages. Other ILO projects such as Green Skills for Decent Work are also delivering skills that improve labour productivity and wages.  

Securing the appropriate wage system will also be a focus at the forthcoming UN Summit of the Future to be held in New York. The summit aims to forge new international agreements on sustainable development, reinforcing our commitment to ensuring fair wages and decent work for all. By addressing systemic barriers and fostering an equitable labor market, we strive to make living wages the standard, ensuring that all workers in Ghana can achieve dignified and sustainable livelihoods.

Call to Action

It is imperative that we move from talk to action. Companies must make a living wage commitment and take concrete steps to raise wages for low-paid workers. The UN Global Compact's Forward Faster initiative challenges businesses to set ambitious targets and work collaboratively with workers organizations, supply chain partners, contractors, and stakeholders to achieve living wages.

We must address the barriers to paying living wages, including the lack of commitment by employers, inadequate enforcement of regulations, and the mismatch between wages and productivity levels as well as ensuring that no groups, especially women, young people or persons with disabilities are left behind.

I encourage all participants to actively engage in today's discussions, share insights, and explore innovative solutions. Together, we can create a roadmap for achieving living wages in Ghana, ensuring that all workers receive the income they need to support their families and live with dignity.

Conclusion

In conclusion, let us reaffirm our commitment to advancing the living wage agenda. By working together, we can create a more equitable and prosperous society for all. Thank you for your dedication and commitment to this vital cause.