Minority caucus says rising utility bills are wiping out workers’ pay gains

The Minority in Parliament says rising electricity and water bills are wiping out public sector workers’ salary gains. It is demanding an immediate review of the 2027 and 2028 pay agreement.

The caucus argues that successive utility tariff increases have outpaced wage adjustments, leaving workers struggling to meet basic household expenses.

In a statement issued on Friday, the Minority condemned the agreement finalised on October 28, 2026. The deal provides a 9% total remuneration increase for 2027, comprising 8% in base pay and 1% in conditions of service. It provides a further 10% increase for 2028.

Mavis Nkansah Boadu, MP and Ranking Member of Parliament’s Committee on Employment, Labour Relations and Pensions, signed the statement.

“Wage negotiations can no longer be conducted in a vacuum while utility regulators greenlight constant tariff increases that wipe out nominal pay adjustments,” the caucus said.

According to the Minority, electricity tariffs have risen by roughly 29% since the start of 2025. It puts the cumulative wage adjustment over the same period at about 20%.

The caucus cited three electricity tariff increases in 2025, which it said compounded to nearly 19%. Workers received a 10% wage adjustment that year.

It said a further electricity tariff increase in January 2026, followed by a reduction in April and another increase in July, had deepened the pressure on household budgets.

The statement also put the cumulative rise in water tariffs since the start of 2025 at roughly 18%.

Beyond utilities, the Minority cited rent, transport, cooking gas and mobile data costs as further drains on workers’ earnings.

It also questioned Organised Labour’s decision to accept the agreement and commit workers to a two-year framework.

The caucus urged union members to demand details of the proposals their leaders submitted, the concessions they made and their reasons for accepting the deal.

It called for the immediate reconvening of the Public Services Joint Standing Negotiating Committee to agree on a living wage that reflects rising utility and commodity prices.

“We reject this insulting 9% pay deal in the face of relentless electricity tariff hikes,” the statement said.