The TUC is angry at proposed austere measures which will see the salaries of public sector workers remain the same as government hopes to cut spending and deal with a ballooning budget deficit.

The measures were contained in a policy statement on Ghana's economy presented by the Minister of Finance, Mr. Seth Terkper, to Parliament last week.

In particular, the TUC says it finds it "strange" that government is considering a freeze on pay increases for workers this year.

"We find government's statement made symbolically, on April Fool's Day full of inconsistencies. A critical analysis of the policy statement leaves us with one obvious conclusion: that Government has once again demonstrated that it is totally insensitive to the harsh economic and social conditions the working people of Ghana and their families are facing", the TUC said.

A statement signed by TUC General Secretary, Kofi Asamoah, in reaction to Mr. Terkper's presentation to Parliament on April 1, 2014 also insisted that the single spine pay policy -- a payment structure for public sector workers -- is not the cause of the country's economic challenges.

The minister had always maintained that single spine is not sustainable going forward because the country's wage bill could exceed the total revenue if steps are not taken to address the situation. 

Mr Terkper also disclosed in August last year that government spent GH¢ 4.3 billion on wages and salaries alone for the first half of 2013, representing 70.1% of total national revenue.

The TUC however says the country's economic challenges are the result of economic "mismanagement".

"In other words, the main reason for the economic crisis has to do with the wrong policies adopted by Government to manage the economy."

The Finance minister last Tuesday told Parliament about measures to rationalise government's expenditure this year include: "a proposal of a moratorium on public sector wage increase in 2014 through the public sector wage negotiation process, a continuation of the policy of net freeze on employment into some sectors of the public service" among others.

But the TUC says it is "baffled" by such policiy interventions.

According to the TUC although government claims to be a social democrat, its policy interventions to address the economic challenges do not reflect that.

"We are fully convinced that if government is bold enough to abandon the IMF textbook macroeconomic policies and adopt the right social and economic policies Ghana will be out of this crisis in no time.

"What we need are policies that will take Ghana out of the current situation where over 8 million out of the 26 million Ghanaians find themselves in poverty despite all the natural and human resources endowment in the country, including oil."

Also, the TUC says the  removal of subsidies on fuel and utilities, the increase in the highly retrogressive VAT from 15 to 17.5 percent on consumer items including food and medicine are the main causes of the  increasing inflation and cost of living in the country, and urged government to look in that direction.

Click here to download the full statement.