COLA Stops when Factors that Initiated It Ends — Gov’t

Ignatius Baffour Awuah, Employment and Labour Relations Minister
Ignatius Baffour Awuah, Employment and Labour Relations Minister

According to government, when the circumstances that called for the 15% Cost of Living Allowance (COLA) are no more, it will stop the policy.

Government took the decision further when it served organized labor members notice that the 15% Cost of Living Allowance (COLA) would be stopped.

The numerous labor unions called an indefinite strike in order to obtain a 20% cost of living allowance to help them withstand the present economic downturn.

However, the government and them came to an agreement for them to receive 15% of the allowance beginning July 1, 2022.

Bright Wereko Brobby, Deputy Minister of Employment and Labour Relations, discussed the likelihood of the stipend not being paid in the future.

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“We have agreed that the Cost of Living Allowance will be paid effective 1st July. As the name applies, it is an allowance which is a result of certain factors that have arisen in the course of the year so as and when these factors are no longer there, there will not be the relevance to still continue with it.”

The government and organized labor have agreed on a 15% cost-of-living allowance for organized labor members.

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 salaries as Cost of Living Allowance (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, at a last-minute meeting on July 14, 2022, all sides agreed on a 15% COLA that will take effect on July 1, 2022.

Employment and Labour Relations Minister Ignatius Baffour Awuah stated, “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.”