The government has given organized labor members notice that the 15% Cost of Living Allowance (COLA) would be suspended once the circumstances calling for it are no longer present.
In order to protect their members from the present financial difficulties, the different labor unions launched an indefinite strike in exchange for a 20 percent cost of living allowance.
However, the government and they agreed that starting on July 1, 2022, 15% of the stipend will be paid.
Bright Wereko Brobby, Deputy Minister of Employment and Labor Relations, discussed the potential for future non-payment of the stipend.
We’ve decided that the Cost of Living Allowance will start to be paid on July 1st. As implied by the name, it is an allowance that is a result of certain events that occurred throughout the year; thus, if and when these events do not occur again, it is no longer relevant to continue with it.
A 15% cost-of-living stipend for organized labor members has been agreed upon by the government and organized labor.
Due to the nation’s present economic crisis, the different labor unions, including the four teacher unions, the Ghana Medical Association, and the Public Sector Workers Union, among others, sought payment of 20% of their base wages as Cost of Living Allowances (COLA).
Over the course of more than two weeks of negotiations, CCT, GNAT, NAGRAT, and TEWU were forced to take part in industrial action to press their demands.
However, during a crucial meeting on July 14, 2022, the parties agreed on a 15 percent COLA that will take effect retroactively on July 1, 2022.
We agreed with the labor unions that the COLA would be paid at the rate of 15% of base pay, and that the effective date for the payment of the COLA will be July 1st 2022, said Employment and Labour Relations Minister Ignatius Baffour Awuah while reading out the conditions of the agreement.
“We also agreed that all industrial actions underway and threats of same will be called off immediately and that labour will return to work.”