Striking labour unions and government have now agreed on a 15% Cost of Living Allowance (COLA) to be paid to all public sector workers.
This takes effect from July 1, 2022.
Reading out the terms of the agreement, the Employment and Labour Relations Minister, Ignatius Baffour Awuah, said “We agreed with the labour unions that the COLA will be paid at the rate of 15% of base pay, that the effective date for the payment of the COLA will be 1st July 2022.”
“We also agreed that all industrial actions underway and threats of same will be called off immediately and that labour will return to work.”
The labour unions, including the four teacher unions, the Ghana Medical Association, and the Public Sector Workers Union, among others, demanded the payment of 20 percent of their basic salaries as Cost of Living Allowance (COLA) due to the current economic situation in the country.
A meeting between both parties on Tuesday ended inconclusively for the second time.
During the meeting, the government asked the teacher unions to call off their strike before negotiations begin, but the teachers remained adamant and subsequently staged a walkout.
The Deputy Minister of Employment and Labour Relations, Bright Wireko-Brobby said the meeting ended inconclusively following teacher unions’ failure to call off their strike.
“We were expecting the teacher unions to call off the strike because the labour law does not permit engagements when one party is on strike or lockout…We are constrained by the law not to negotiate when one party is on strike, so organised labour suggested that we adjourn the meeting and do more negotiations.”
Striking teachers have subsequently called off their strike action following the 15% COLA agreement.