Public sector wage reforms in the light of equity principles

Abstract

Since 1967 seven committees and commissions have been set up to review disparities, distortions and anomalies inherent in the pay policy and wages in the public sector in Ghana. The introduction of the Single Spine Pay Policy in the year 2010 was meant to address these anomalies but has been bedevilled with several unrests at the labour front. This has manifested itself in various ways such as strike actions, protests, petitions, legal actions, and appeals to the Labour Commission and other stakeholders. Several attempts at resolving these agitations since independence have not yielded the expected outcome which would have led to a more stable labour front. The literature on the various pay reforms in Ghana has not addressed the equity issues inherent in them. The aim of this article therefore, is to review the pay policies, in the light of equity principles and propose solutions to minimise the labour unrest associated with public sector wage reforms. The article uses Adams Equity theory of motivation to explain the frequency of labour unrest in Ghana and proposes the application of the tenets of equity theory as a solution. We use documentary analysis to examine the various reforms and propose a theoretical approach to resolve the canker within and among the labour groups. We conclude this article by arguing that the frequent labour unrest within the public service in Ghana is mainly as a result of perceived inequity in the implementations of the public sector wage reforms.